Pulling the rug is a kind of scam where developers create a fake project and promote it just to disappear with the investors’ money. Here’s a report on 3 infamous rugs that were obvious scams but managed to scam investors out of millions of dollars.
For the uninitiated, pulling the rug is a kind of scam where developers create and promote a fake project only to have it disappear with investors’ money. They metaphorically pull the rug out from under the feet of unsuspecting investors, hence the name.
Some rug pullers use intricate schemes, creating faux projects that look reasonable and worth the investment. However, it is clear that many of the rug pulls do not contain any interest and are usually on the back at some popular event to attract the interest of investors.
Surprisingly, many investors fail to see these projects for what they are – a blatant attempt to spoil investors with their money – and pour money into these fraudulent platforms. Results? Pain and suffering for investors, with entire savings lost in some cases.
Here’s a report on 3 infamous rugs that were obvious scams but managed to scam investors out of millions of dollars.
squid games icon
This is one of the largest crypto rug pulls 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 around the show, investors ignored the warning signs and put their money behind the project. Thanks to this massive investor interest, the price of the Squid Games token saw a gain of 2,30,00,000 percent in a week and peaked at $2,862, according to data from CoinMarketCap.
Once the price reached this peak, the scammers decided to sell their property, causing the price to drop. Squid Games went from an all-time high to $0 in minutes, leaving investors with a bag.
A cryptocurrency project named after a viral disease is not something that most people take seriously and are left alone to 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 of this year and is listed on PancakeSwap. Monkeypox reappeared at that time and spread all over the news. This gave the crypto project a splash, as investors poured money into the fake currency, hoping that the moon would be over. However, MPOX lost 99 percent of its value after three days, leaving investors hanging.
CryptoWhale estimates that the scoundrels behind the fictitious project evaded investors’ money worth $400 million. However, cryptocurrency users believe that this number is too high for a token that has only been around for three days. In any case, a lot of investors put money behind the project, which turned out to be a hoax.
Queen Elizabeth Tokens
The news of the death of Queen Elizabeth hit Britain hard and saddened many. However, this did not prevent the opportunists from making the most of the situation. Just hours after her death, cryptocurrency insiders released several meme coins inspired by the late king. According to the Blockworks article, more than 40 projects bearing the Queen’s name were floated on BNB Smart Chain and Ethereum 24 hours after Her Majesty’s death.
One coin, Queen Elizabeth Inoue, saw a 47,655 percent gain, boosting trading volume by $6 million, according to Dex Screener. However, the coin makes all the hype around the queen’s death and is probably useless. Most other projects have little or no fluidity, which is a clear indication of a potential pump and vacuum mat drag.
There have been no developments regarding these collapsed projects so far. However, with so many investors backing these seemingly worthless coins, it is a disaster waiting to happen.
Cryptocurrency is expanding at breakneck speeds. It’s as if there’s a new crypto project every day. Many of these upcoming developments could be rugby combos looking to deceive 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 benefit it provides, the basics of the coin, the history of the developers, the clarity and quality of the white paper, KYC audits, etc. A thorough examination of all these factors should be undertaken. You have a fair idea regarding the legitimacy of the project.
(Edited by: Priyanka Deshpande)