A number of news outlets are reporting on the sudden disappearance of SquidGame.cash, the website behind the trending cryptocurrency based on the popular show, Squid Game. The token’s meteoric rise, however, was filled with warning signs. Even still, some experts, including a Johns Hopkins professor, are saying that this latest scam is representative of the crypto ecosystem.
“It’s always tragic when people are scammed out of their hard-earned money. But, this is yet another reminder that investors must be vigilant. There were many signs, throughout the build-up, that this was a fraudulent scheme. The first thing any crypto investor should do when looking at a new project? Read the white paper. Then they should do their due diligence. In this case, the white paper was not professionally prepared. It was riddled with typos. That’s not something that a company which partnered with Netflix and Disney on a crypto project, as was claimed in this case, would do,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.
“In many ways, new crypto projects are much like penny stocks. And, if you’re going to invest in that space, you need to do your due diligence. If a token claims to be partnered with major corporations like Netflix and Disney, go and check out if there is a press release on the company’s website. Disney isn’t going to create a token without publicizing it. These are basic things investors in any area must do. To say that the Squid Game token debacle is representative of the crypto ecosystem is like saying that start-up CBD penny stock is representative of investing in established pharmaceutical firms. It’s patently absurd,” said Gardner.
“What’s worse than the blatant mischaracterization is that these crypto-naysayers know that they’re spouting off nonsense. It is a tragedy that bad actors take advantage of unsuspecting investors, whether that’s here with token scams or in real estate, where some unscrupulous sellers fail to make proper disclosures about pyrrhotite in concrete mixtures, which have resulted, over the years, in a crumbling foundation. Whenever money is involved, there will always be bad actors. Scams and hackers involve themselves in cryptocurrencies because there is wealth in the industry. It is up to us to remain vigilant when investing and, as a community, work towards creating regulatory changes which make such chicanery more difficult,” said Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.
“I’ve been saying for quite some time that the industry needs greater regulation to prevent these kinds of issues. What needs to happen, in my opinion, is for government to come together with those in the industry to create a commonsense rulebook that guides the industry. We need to take steps to keep bad actors from absconding with the assets of unsuspecting investors to keep the public safe, while at the same time recognizing that there is tremendous potential for the blockchain industry to explode. We need to still allow innovators to do what they do best: create cool things that add value,” said Gardner.
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