Crypto arbix flagged as rugpull

I believe it will over the next 10 years, then you’ll be glad you owned it.”

  • Cash transfer company MoneyGramInternational (MGI) made a strategic minority investment in crypto cash exchange company Coinme, giving it a 4% ownership stake. The deal will close Coinme’s Series A funding round, and help support international expansion along with other growth plans.
  • Bank of America (BofA) analyst Jason Kupferberg downgraded The Western Union to Underperform from Buy due to structural concerns related to competition from pure-play digital remittance providers and possible disruptive threats from newer technologies, Benzinga reported.
  • CryptoSlam, an NFT industry data aggregator, closed an USD 9m funding round led by venture capital firm Animoca Brands.

  • This causes panic among the public and they sell their assets leading to a temporary downward trend for crypto markets as a whole.

    A “Rug Pull” is when an investor purchases their holdings and then sells them off quickly to make a profit. This is not new for crypto markets because it’s been happening since the beginning of time. It was just an event that received a lot more attention due to the recent market volatility and media hype of cryptocurrency going mainstream.

    A “Rug Pull” is when an investor purchases their holdings and then sells them off quickly to make a profit

    The rug pull is a term used to describe the sudden, sharp decline in the price of an asset, usually after an increase.

    This can be attributed to fear or panic, which typically lasts for a few days before prices return to normal.

    While he did not explicitly state that the platform would be integrating crypto, he did say that they are “already working on some” of the products that were requested and “will look into others now.”

    NFTs news

    • The Australian Open is releasing a collection of 6,776 non-fungible tokens (NFTs) that correspond to minuscule plots on the tennis tournament court’s surface, along with a virtual event for the competition on the metaverse platform Decentraland. Every winning shot from the tournament’s 600 matches will correspond to one of the collection’s NFTs.

    DeFi news

    • Web browser Opera announced a partnership with the decentralized internet company dWeb Foundation over the integration of the decentralized blockchain domain name system, Handshake (HNS).

    The integration should go live in the first half of 2022.

    Gaming news

    • Esports organization Team Vitality and blockchain project Tezos (XTZ) announced a partnership where Team Vitality rosters will represent the Tezos brand in esports and gaming. On the other hand, Tezos will educate fans on the benefits of blockchain as part of the gaming experience and showcase the advancements of these technologies.

    Mining news

    • Hut 8 Miningstated they mined BTC 276 in December 2021, and that their total BTC balance held in reserve is 5,518 as of December 31, 2021, a 97% increase from the prior year-end.

    The extraordinary growth of Axie Infinity (AXS) has meant investors are hungry for play-to-earn games. And Netflix recently said its Squid Game show is its most popular ever.

    But there were also some warning signs, which are key to know if you want to avoid falling prey to future rug pulls. Here are some red flags to watch out for:

    1. Its white paper and website were full of errors. If there are typos in the promotional materials, alarm bells should start ringing.
    2. The founders were anonymous. This made it easy for them to disappear with investors’ money.
    3. It wasn’t available frommajor cryptocurrency exchanges. With over 13,000 coins on the market, big exchanges only list a fraction of the available coins.

    Because decentralized networks are inherently untrustworthy, entities like CertiK attempt to evaluate them through audits that analyze a token’s smart contracts for signs of fraud, vulnerabilities, privacy problems, etc.

    In Arbix’s case, CertiK’s conducted an audit on November 19th, 2021, whose findings had initially been a reason for users to trust Arbix Finance.

    However, today CertiK tweeted that Arbix is now classified as a rugpull after the token’s smart contract was detected minting 10 million ARBIX to addresses under the owner’s control and then dumping them for Ethereum.

    #CommunityAlert#Arbix Finance has been identified as #rugpull.

  • Twitter restricted the SQUID account for “unusual activity.” This probably happened too late for most investors, but even before Twitter stepped in, people couldn’t reply to posts on SQUID’s feed.
  • Most significantly, investors couldn’t sell the coin. Various reports say it was possible to buy — but not sell — SQUID, which is the clearest signal to stay away. There’s no point owning a coin that’s worth a fortune if you can’t sell it.
  • Nobody wants to fall victim to a rug pull, so if a coin is promising extreme rewards, look for the danger signs before you trade.

    Research is crucial

    All cryptocurrencies carry risk simply because there’s so much we don’t know about how this industry will develop.

    A liquidity pool is something a decentralized exchange (DEX) uses to ensure customers can trade.

    Without getting too technical, a centralized platform acts as the middleman and manages your trade using an order book. In contrast, a DEX uses a liquidity pool. As the name suggests, it’s a pool that contains pairs of tokens. Investors are incentivized to provide liquidity by committing tokens to the pool in exchange for rewards.

    Traders then buy and sell from the pool, and the liquidity providers often receive a percentage of the fee.

    How to avoid being scammed

    We’re in a crypto trading frenzy and it’s all too easy to get caught up in the hype. We see the price of certain meme coins jump hundreds or thousands of percent, even though there’s nothing substantial behind them.

    The perpetrators then ask for money and provide fake promises to investors, including promises made by an exchange which they don’t control.

    What to look for, to avoid them

    The cryptocurrency market is largely unregulated, so scammers have found it easy to take advantage of buyers who are unaware of how much risk they are taking or how difficult it will be to recover their investments. These scammers often take people’s money with high-profile names in the industry attached to their recovery plan.

    A crypto rug pull is a scam that pays out based on cryptocurrency and other investments. The main idea behind the scam is to offer you a portion of your initial investment back in return for joining the company as an affiliate.

    The first step to avoid this scam is to know where it originated from.

    Image source: Getty Images

    Scammers made off with $3.4 million of people’s money.

    Key points

    • The price of SQUID rose over 23,000,000% in a week before falling to nothing.
    • The Squid Game token turned out to be a rug pull, costing investors millions.
    • Research is the best way to avoid being scammed.

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    Squid Game (SQUID), the cryptocurrency token inspired by the Netflix hit, collapsed yesterday, leaving many investors with nothing. The meme coin launched on Oct. 26 and gained over 23,000,000% in a week, according to data from CoinMarketCap.

    It peaked at around $2,862 before falling to a fraction of a cent in a matter of minutes.

    SQUID was supposed to be the utility token for a play-to-earn game. There were six Squid-Game-themed games on its website, which is no longer working. The token and site had no connections to the smash-hit Netflix show that features a dystopian game in which contestants can pay off their debts — or literally die trying.

    What is a rug pull?

    A rug pull is a type of scam where a project’s founders suddenly pull out, taking investors’ money with them.
    In this case, the anonymous scammers made off with about $3.4 million of funds.

    After pumping up the token’s price on social media, the developers used a backdoor in the code to drain cash from a liquidity pool.

    Keep your expectations in check – “think small” to avoid disappointments and regrets.

    2. Make sure you have done your research – read books, watch video tutorials, and ask trusted peers for advice on what to expect in crypto space.

    3. Don’t invest more than you can afford to lose – remember that investments are always risky and that investing into cryptocurrencies is no exception.

    Warning signs for a scam include vague documentation and unclear information from the project.
    Research it thoroughly before investing to make sure you know who the owners/token holders are as well as other important details.

    • Take a look at the company’s holdings

    You need to check what percentage of the tokens are held by developers.

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