The market of the "predator" and the speculators

You may have heard of the recent collapse of the Squid Game. No, Netflix hasn't stopped offering the popular series on its platform. The reason for the cryptocurrency that fraudulently got its name from the Korean series that makes a worldwide success.

The Squid token after just two weeks of life collapsed, and its creators are said to have pocketed over $3 million. Many small investors - who haven’t opened a crypto trading book in their lives - bet from their savings $1,000, $5,000 or even more on this cryptocurrency following a strategy that in other cases has made some millionaires. This time millionaires became the rogue creators of the Squid token.

The "grab" in crypto has two sides. That of the creator of the digital currency and that of the investor. Investors who do not take the markets seriously and instead of roulette prefer cryptocurrencies, follow the following tactic: "I buy cryptocurrencies worth a few cents or much lower (the price of Shiba Inu is $0.000065), with the expectation that their price will multiply quickly, either because someone famous will refer to them or because... thus. Immediately afterward I will liquidate to guarantee the very easy profit." If this strategy is not a grabbing then what is it?

The price of the Squid from 1 cent reached in one week at $2,856, before being knocked down by 99.99% and coming out offline. The terrible thing was that those who bought the token could not sell it, so everyone was caught in the same trap.

On the other hand, we have ‘’creators’’ who naturally take advantage of this trend. Developers make a cryptocurrency that is essentially a scam and copy of someone else and all they have to do is find an imaginative and "catchy" name. Just like the Squid Game. Could the next cryptocurrency that will make – even for a while – a snap to be called "Casa de Papel Coin" or anyway have a name that sells. Without bringing any innovation, without offering anything substantial. We said we're talking about a rattrap.

Squid token, after recording a 310,000% rise last Sunday alone, lost all its value within minutes after blocking its Twitter account that spotted some suspicious activity. The bait to buy Squid was that it would be the currency of participation in an online video game inspired by the Netflix series.

The game would reward the winners with more Squid tokens which would then be exchanged for other cryptos. According to the website Gizmodo, after the collapse of the price that reached literally zero, its creators put in the pocket more than 3 million dollars and became tobacco.

Those who have the naivety to invest in cryptocurrencies that they do not know simply because they believe that they will make an easy and quick profit, should know that they face a serious risk of losing it all. Like a speculator betting on "dead" assets... Except that even the most problematic assets have a value that can somehow be calculated.

Another faction in the market is speculators. Not big investors, but ordinary citizens who have some savings aside and decide to invest a small part of them in any of the 20 largest cryptocurrencies. Most people bet on the fact that the market is new and in general, there is a feeling that it will go higher. In reality, of course, they do not have the necessary knowledge to assess the situation, they do not even know how cryptocurrencies work. Just hoping for a rise.

The big question remains: Can the market be regulated in some way so that investors are at least to some extent safeguarded? For example, when someone buys an ETF in Bitcoin futures, he knows that it is approved by the SEC and behind it, there is an administrator and therefore knows where to turn. In the case of the collapse of Squid or after the closure of the Thodex and Vebitcoin exchange offices in Turkey earlier in the year, investors lost it all.

Of course, in such a new market with such complex and difficult to understand terms, it makes sense for investors to make mistakes or fall prey to the cunning. When there are over 13,000 cryptocurrencies and investors are hearing about incredible returns, like Shiba Inu's who gained about 1,000% in a month, it doesn't take long for anyone to ‘’step on the nail’’.