#CORRE CORRE CORRE

Lesson of the day

Stories of famous Rug Pulls – BitConnect and Squid Token

BitConnect (2016-2018):

With a promise of daily returns of up to 1% fixed, BitConnect presented itself as an "investment platform" with its own token. It even had ambassadors shouting "BITCONNEEEEECT" at conferences.

What was the reality? A textbook Ponzi scheme. They used money from new investors to pay the previous ones. When it collapsed, its token fell from nearly $500 to less than $1 in a matter of days. Many lost everything.

Squid Token (2021):

Inspired by the series "Squid Game", the token skyrocketed over 75,000% in just a few days. But there was a catch: no one could sell. The creators ran off with the money (around $3 million) and the price dropped to $0.00000001 in seconds.

Lesson: If a crypto promises guaranteed profits, if it has many barriers to selling, or if no one knows who is behind it… run. You are likely facing a rug pull disguised as an opportunity.