Scammers take SQUID investors for 100% … meanwhile, an Ultimate Crypto altcoin goes vertical … how to protect yourself from one, while benefiting from the other

 

Over the last few days, some unfortunate crypto speculators lost everything.

That’s not hyperbole. We’re talking a full 100% destruction of capital.

Meanwhile, over the same last few days, some crypto investors locked in gains of 300%.

It’s the agony and ecstasy of the altcoin world. And today, you’ll see both sides.

Let’s begin with the sad, illustrative tale of what not to do.

***It was about a week ago that the latest hype-altcoin hit the market – SQUID

It was an altcoin inspired by the hit TV show, Squid Game, which has become Netflix’s biggest series ever.

The red flags were all over the place…

SQUID’s official website was filled with bizarre spelling and grammatical errors…

SQUID’s Telegram channel didn’t allow comments from outsiders…

The coin’s Twitter account made it impossible to reply to posts…

Despite these peculiarities, crypto investors stampeded into SQUID, sending its price stratospheric. The coin exploded 83,000% over just a few days before – well, we’ll get to that in a moment.

Now, you should know there was one colossal red flag that trumped all the others. And while the earliest SQUID investors might not have had the benefit of seeing this red flag, all the “me too” investors jumping in over the last few days should have done their due diligence and discovered it.

I’m talking about the reports that investors couldn’t sell their SQUID holdings to lock in gains.

From CNBC, last Thursday, which was in the midst of the parabolic growth curve:

SQUID is trading at $2.22, up nearly 2,400% over the last 24 hours, and its market capitalization is above $174 million.

However, those interested in taking part may want to exercise caution before jumping into trading squid.

CoinMarketCap has issued a warning, saying that it’s received “multiple reports” that users are not able to sell this token on Pancakeswap, a popular decentralized exchange.

It is unclear why some users are unable to sell their tokens, but the white paper describing the coin does lay out an anti-dumping technology that prevents people from selling their coins if certain conditions are not met.

CNBC reached out through contact information listed on the Squid website to ask whether the developers were aware of the problem and working to fix it, and didn’t immediately hear back.

There’s a simple reason why CNBC didn’t hear back…

SQUID coin was a scam. And investors lost everything.

***Following a meteoric 230,000% gain, SQUID scammers took off with the money, resulting in a 100% loss of investor capital

Despite last week’s warnings about SQUID illiquidity, investors continued funneling money into the crypto, pushing its return to more than 230,000% (in one week). The price topped out at $2,861.80.

And that’s when the scammers did what’s called a “rug pull.” In short, theft.

Early yesterday morning, they cashed out their coins, draining liquidity from the exchanges, which drove SQUID’s price down to less than half a cent.

SQUID investors hoping for instant riches lost every dime.

From Gizmodo:

This is just the latest example of scammers utilizing pop culture to get media attention.

A similar rug-pull occurred earlier this year with Mando, a cryptocurrency that used images from Disney+’s Mandalorian TV show—without permission from Disney, of course.

***This is the opposite of how our crypto experts, Luke Lango and Charlie Shrem, suggest investing in the altcoin sector

There’s a huge difference between an altcoin that can soar based on hype, and an altcoin that provides real benefit, and can soar based on intrinsic value.

But how can you tell the difference?

The answer points toward something that’s forgotten by so many “me too/instant riches” speculators…

Homework.

Luke and Charlie’s Ultimate Crypto research service only recommends altcoins that have been thoroughly researched and vetted, and receive top rankings in Ultimate Crypto’s proprietary “MAG” scoring system, which stands for “Multifactor Altcoin Grading.”

From Luke and Charlie:

Our proprietary MAG System analyses 10 critical attributes of every altcoin, scores them on each attribute, and produces a total score.

If an altcoin earns a score above our “buy threshold,” we immediately consider it for investment. If an altcoin scores poorly, we recommend you avoid it like the plague.

I won’t go into all the details, but the system analyzes a diverse array of factors – from technical indicators, to the team behind the coin, to its risk fingerprint, to on-chain data.

It’s an exhaustive analysis – but that’s what you need when investing in a sector rife with SQUID scams.

Now, let me show you what can happen when you limit your altcoin investments to just these top-tier coins.

***Luke and Charlie’s Ultimate Crypto subscribers just enjoyed a 300%+ pop

One of the Ultimate Crypto holdings is Decentraland (MANA).

If that name sounds familiar, it’s because we profiled Decentraland here in the Digest months ago, when discussing the rise of the Metaverse.

Decentraland, which is a virtual land platform, is an early-mover in the Metaverse. Here’s an image.

Its native token is MANA, which Luke and Charlie recommended back in September.

In their October issue that published one week ago today, Luke and Charlie updated subscribers on MANA and its progress, ending with:

We love Decentraland’s potential. Buy MANA while it is still under our $1 limit.

Well, over the last few days, MANA has skyrocketed based on growing interest in the Metaverse thanks to Facebook.

From yesterday’s Ultimate Crypto update:

Over the weekend, a few of our coins “pumped,” as they say in the crypto markets. Decentraland (MANA) pumped particularly hard, helped by a lot of positive chatter on the Metaverse front after Facebook changed its corporate name to Meta.

With the coin now up more than 4X in a little over five weeks, we want to capitalize on this great opportunity to lock in some of those huge gains.

We still love MANA over the long term. The Metaverse is the future, and Decentraland projects to be one of the strongest Metaverse platforms by 2025. This coin has a runway up to $10 and beyond in a multiyear window.

However, we’d be foolish not to take advantage of the current spike. The token basically rose 4X in a day. So, the smart move now is to keep our core position but sell one-third of your MANA for 300%+ gains.

This guarantees a profit on the original cost basis, and we keep most of this position invested with “house money.”

I think Luke and Charlie’s recommendation to lock-in some gains is a wise move.

Though MANA is trading at $3.00 as I write Tuesday afternoon, I’d expect its price to drift lower over the coming days (though I could easily be wrong). That’s because there’s a difference between spurts of rabid enthusiasm for a crypto and organic growth based on long-term fundamentals.

As this moment of rabid enthusiasm wanes, we’ll likely see MANA’s price ease. However, the altcoin’s long-term growth story is in-tact and as strong as ever, as Luke and Charlie noted above.

Bottom-line, MANA is a great play on the Metaverse and we anticipate huge multi-year returns. A big congrats to Ultimate Crypto subscribers on this quick 300%+ win.

As today’s two stories have illustrated, the altcoin market can create massive returns, yet also destroy your capital – overnight. Navigating this sector requires a deliberate method for eliminating the imposters, while finding the potentially-explosive winners. That’s what Luke and Charlie have done and it’s certainly paying off.

Before we sign off, I’ll add that MANA’s return isn’t an outlier. The Ultimate Crypto portfolio is up an average of 855% as I write.

That’s what homework can do for you.

Have a good evening,

Jeff Remsburg