Binance announced that it was assisting developers in identifying the criminals involved in the Squid Game cryptocurrency scam. CZ said he would share the information obtained from the information with law enforcement agencies.
Binance Exchange CEO Changpeng Zhao (CZ) recently expressed his disappointment at the actions of some ill-intentioned players in the cryptocurrency industry.
Do your own research
CZ was significantly perturbed by the recent happenings involving unscrupulous players in the DeFi industry following the Squid Game cryptocurrency scam. According to CZ, such individuals were deflating the efforts of trying to make the cryptocurrency industry more regulatory compliant. He said:
“Because these scams are becoming more commonplace as the DeFi space grows, I’d like to take this opportunity to remind users that DeFi is not without its risks, and we hate to see anyone lose their funds due to scams and other cybercrimes.”
CZ has taken it upon himself to explain to potential investors how to identify and avoid falling victim to investment booby-traps such as the infamous Squid Game token rug pull. The Binance CEO reiterated the fact that the DYOR (Do Your Own Research) principle was crucial, and it was “a concept I think every investor should know about.”
Familiarize with a crypto project before getting involved
It has been customary for investors who have lost their crypto investments in DeFi and crypto-related scams to blame crypto exchanges. However, CZ believes it is the primary duty of all investors to do due diligence and familiarize themselves with a crypto project before getting involved. This, he said, would help them identify red flags well ahead of disaster. CZ added:
“It’s as close to a golden rule as anything in the world of crypto […], but it applies more even broadly to anything you’re planning to invest in, from Bitcoin and bonds to stablecoins and stocks.”
Changpeng Zhao reiterated that leading players in the crypto industry, such as Binance, cannot band or delist scam projects. He argued that DeFi and crypto projects are built on decentralized open-source networks, meaning no other individual or organization can control them.
Remain careful while putting money on purposely hyped cryptocurrencies
The Squid Game cryptocurrency was based upon the popular Netflix series Squid Game and became extremely popular among investors. The coin attracted the masses after peaking at $2,861 only one week after its launch. However, the currency soon dropped to $0; with the creators disappearing to thin air with investors’ $3.38 million in what crypto industry players believe were an exit scam.
Such scammers play upon investors’ get-rich-quick instincts by exciting around trending topics in the digital space. Investors who’re anxious to avoid getting left behind will throw all caution to the wind after seeing the meteoric rise of a particular cryptocurrency. CZ advises investors to remain careful while putting in their money on such purposely hyped cryptocurrencies.
Tom is a long-serving freelance writer who specializes in the blockchain and cryptocurrency niche. You may even call him a crypto-enthusiast with over 10-years’ experience in content creation, blog writing, and SEO. He is a philosophical figurehead who believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.