This Monday, the value of the cryptocurrency squid, inspired by the series ‘The Squid Game’, plummeted to almost zero and its anonymous creators removed its website and stopped updating their social networks. Soon, it became clear that it was a scam that allowed them to take more than 3 million dollars, according to estimates cited by Gizmodo.
Squid is neither the only nor the biggest scam to take place in the digital currency market, which has intensified in recent years.
One of the biggest scams to date has been the open source cryptocurrency BitConnect, launched in February 2016 by Indian Satish Kumbhani. It was presented as a cryptocurrency lending platform where bitcoins were allowed to be exchanged for the native ‘token’ bitconnect coin. Holders of this currency had to earn daily interest of 1%.
The initiative obtained the backing of several investors, the most famous of them being the American Carlos Matos. However, in November 2017 the platform received a notice from the United Kingdom to demonstrate its legitimacy and in early 2018, the Texas State Securities Board classified it as a “Ponzi scheme” (or pyramid scheme), citing failure in the profits of users and misleading statements. In January of the same year, the platform closed, causing the bitconnect coin to fall by 92%. Losses caused by the scam are estimated at $ 3.45 billion, according to Yahoo! Finance.
Months after the Bitconnect crash, in April 2018, another…