Shitcoin will not always become shit status but some did. There are many red flags on certain types of shitcoin that only gains popularity during current event trend and they had no plan for their future with many too good to be true promises to lure investors to join until their founder run away with the money.
Netflix show Squid Game
The Squid Game is a sensational impact on the world around with the great content of the storylines and the weird vibe of background music. Many people are becoming obsessed with the show and they want everything associated with it.
Squid Game Token
The token was inspired by the show of a deadly tournament of children’s games except there is no death associated with it. To obtain the token, you need to use Bitcoin and swap in pancakswap.com. To participate in the final round, you will have to pay $33K and purchase an NFT.
Red flags everywhere even in the whitepaper
Misspelled words
There are many grammatically incorrect and misspelled English words starting with page 2.
Completely mimic the show but with charging fees
The project completed follows the game from the show with levels except the game is not free!
Fees are everywhere in the game
You need to have an entry fee for each game. The price of entry fees are incrementally and become very steep from level 3 with purchasing of NFT required.
You cannot sell token
There is an anti-dump mechanism that does not allow you to sell for profits.
Using less secure swap exchange
Using PancakeSwap to obtain squid game tokens is another red flag that your tokens may be stolen during the swap exchange process.
The roadmap of the project only covers 3 months
There is no vision of the project to survive long term but shortly after the popularity of the show goes down.
Partners with big sites mean nothing more than just a promise
It claimed to have partnerships including OpenSea, CoinMarketCap, CoinGecko, Microsoft, and Binance Smart Chain (BSC). Hardly likely every partnership is a partnership. Also, I wonder why Microsoft got involved in the first place.
One large number of tokens in one wallet
The developers behind the project held a large number of tokens just in one wallet to be ready for running away.
3 days of a market epic run
The token rose by more than 35,000% in just three days and crashed the fourth day when the founder clearly wanted to sell for $15M but end up with $2.5M and closed all related sites.
Internet got pieces of evidence and a founder should go to jail
Luckily, the internet recorded everything and you can find the history of the site here. You can file a lawsuit against the founder since they presales tokens as a financial intention to raise their project similar to raising investments and clearly they run away with profits.
Don’t FOMO
You do not want FOMO into the new tokens. Try to understand the whitepaper and see how long it will take the project. Does the whitepaper have a future vision or just a short insight to take advantage of the current trend?
In conclusion
Everyone wants rich overnight. However, crypto is not a place for scammers and those who did scam people are jeopardizing themselves to face criminal charges.