3 crypto projects that screamed carpet pulling, but still attracted investors
Of CNBCTV18.com IST (published)
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A scam is a type of scam where developers create and promote a fake project only to disappear with investor funds. Here’s a roundup of 3 infamous carpetbaggers that were clearly scams, but still managed to dupe investors out of millions of dollars.
For the uninitiated, a straw move is a type of scam where developers create and promote a fake project only to disappear with investor funds. They figuratively pull the rug from under the feet of unsuspecting investors, hence the name.
Some rugs use elaborate schemes, creating fake projects that seem plausible and worthy of investment. However, many blanket moves clearly have zero utility and usually piggyback on a trend event to attract investor interest.
Surprisingly, more investors fail to see these projects for what they are – an obvious attempt to push the investors from their funds – and pour money into these fraudulent platforms. The result? Pain and suffering for investors, with entire savings lost in some cases.
Here’s a roundup of 3 infamous carpetbaggers that were clearly scams, but still managed to dupe investors out of millions of dollars.
The Squid Games Token
This is one of the biggest crypto carpets in recent history. In October 2021, a group of anonymous developers created a supposed pay-to-play token and promised coin holders access to an online game inspired by the popular South Korean TV show “Squid Games”.
With all the hype surrounding the show, investors ignored warning signs and put their money behind the project. Thanks to this huge investor interest, the price of the Squid Games token gained 2,30,00,000 percent in one week and reached a peak of USD 2,862, according to data from CoinMarketCap.
When the price reached this peak, the fraudsters decided to sell their holdings, causing the price to crash. Squid Games went from an all-time high to $0 in minutes, and investors held the bag.
MonkeyPoxInu
A crypto project named after a viral disease is not something most people would take seriously, let alone invest in. However, not all investors see things the same way; where some see a recipe for disaster, others somehow see a burgeoning investment opportunity. And that’s exactly what happened with MonkeyPoxInu.
The token was launched in May this year and was listed on PancakeSwap. Monkeypox had resurfaced by then and was all over the news. This gave the crypto project a wave to ride, with investors pouring money into the fake coin, hoping it would take off. However, MPOX lost 99 percent of its value three days later, leaving investors hanging.
CryptoWhale estimates that the crooks behind the fake project got away with $400 million in investor funds. However, crypto users believe the figure is too high for a token that was only live for three days. Anyway, many investors put money behind the project, which turned out to be nothing more than a hoax.
Queen Elizabeth Tokens
The news of Queen Elizabeth’s passing hit Britain quite hard and saddened many. However, this did not prevent the opportunists from making the best of the situation. Just hours after her death, crypto-grifters launched several meme coins inspired by the late monarch. According to a Blockworks article, over 40 projects named after the Queen rolled out on BNB Smart Chain and Ethereum 24 hours after Her Majesty’s passing.
One coin, Queen Elizabeth Inu, saw a 47,655 percent increase, racking up $6 million in trading volume, according to Dex Screener. However, the coin is simply riding on all the hype surrounding the Queen’s death and probably has zero utility. Most of the other projects have little or no liquidity, a clear indicator of a potential pump and dump blanket move.
There have been no developments regarding these crashing projects yet. But with many investors backing these seemingly worthless coins, it’s a disaster waiting to happen.
Conclusion
The encryption center is expanding at breakneck speeds. It’s almost like there’s a new crypto project every other day. Many of these upcoming developments may be blanket covers looking to fool investors. Therefore, it is always important to do your research before investing in a coin.
Look at the problem(s) the project is looking to solve, the utility it offers, the fundamentals of the coin, the history of the developers, the clarity and quality of the white paper, KYC audits, etc. A thorough inspection of all these factors should give you a good idea of the legitimacy of a project.
(Edited by : Priyanka Deshpande)
