TERRA LUNA and SQUID Game: A PONZI Scheme
Hi Friends,
There are thousands of Ponzi schemes out there. This article aims to create awareness among readers on how to avoid these schemes and save money.
Let us look into some of the biggest PONZI Scheme of the last few years:
TERRA LUNA is one the biggest rug pulls in the crypto industry. Terra LUNA was designed to fail from its beginning. De Kwon knew the end was coming. So, he started buying bitcoin to safeguard his wealth which remain untraceable.
Today, TERRA LUNA is less than $0.0017. So, how did Terra LUNA fall?
The downfall of Terra LUNA started with the high promised APY of 20% on stable coin UST by Anchor Protocol which caused more issuance of UST. More investors put their money in due to the bold claim of the founder. De Kwon purchased 80 K bitcoin from this fund and issued more UST.
The excess issuance of UST caused selling pressure. The stable coin UST failed to maintain its value equivalent to $1. The founders sell more LUNA which is the reserve for the UST. It created mayhem! Further, the crash of UST has a domino effect on LUNA and ultimately Bitcoin also crashed.
The 80 K Bitcoin held as a reserve by TERRA LUNA Foundation is untraceable at the moment. LUNA Foundation claims to spend almost all bitcoin to save UST and LUNA but the blockchain and crash don’t support the argument. The Secrecy behind the accounts should be investigated.
What is the future?
There is a need for regulation in the crypto industry. The stable coin should be backed by fiat, not an algorithmic token.
We still have a few algorithmic stable coins which can put the whole crypto industry at a risk such as DAI, FRAX, USDN, and Magic Internet Money. In a true sense, Magic Internet Money should not even exist. It looks like a total scam.
DAI can put the whole Ethereum ecosystem at systemic risk. The innovative financial mechanism like the issuance of soft ether and earning interest on these further creates new risks.
SQUID Game:
SQUID Game was designed by the scammers from its beginning to create a rug pull and steal investors’ money. Some of the characteristics of this PONZI scheme are based on a hyped popular Netflix show, promised more rewards for more people joining the game, and poorly designed whitepaper.
Squid Game smart contract didn’t allow investors to sell SQUID tokens. Only those holding $Marbles in the game can sell SQUID tokens.
Gullible investors lost millions of $$ in this scam token.
Advice:
- Read the whitepaper and check the founder’s background. DE Kwon has been involved in another failed algorithmic stable coin, i.e. Basis cash.
2. Get rich by buying assets in a downturn and selling in an upswing in well-proven assets like Bitcoin, Ethereum, etc.
3. Don’t go into a get-rich-quick scheme. Most of them are PONZI Scheme which steals your money like SQUID Game. 100% APY doesn’t exist, You will lose money.
4. The recent rug pull in Strong Nodes, Thor Nodes shows even the most popular nodes without a strong fundamental of use cases will lead to loss of investor money.
5. Invest in projects which pay you sustainable returns like 5–10% and have a proper use case like Pre search Node, Livepeer Network, RNDR token, SC Prime, or Storj Node, PublishOx. They will not make you reach in a day but enables a source of passive income.
Link for sustainable crypto projects:
- PublishOx: Earn crypto for publishing your work and read other readers: https://www.publish0x.com/?a=zPdywkMWaQ
- Brave Browser: https://brave.com/
- HoneyGain and Jump token: Sell your unused data. Get a free $5 bonus: https://r.honeygain.me/ANANTA15C1
4. SC Prime: https://scpri.me/
5. Odysee: Earn free crypto for watching videos (https://odysee.com/$/invite/7QEyaRqrgtsKDD55w4e6idL42Q18erLe)
6. Livepeer explorer: https://explorer.livepeer.org/
7. Presearch Node: https://account.presearch.com/signup?rid=3990849
