Look, I’ve said it before, and I will say it again, I am all for banks banning customers from buying cryptocurrencies from unregulated exchanges. Regulations are there for a reason, protection.
I know there is frustration, anger and confusion; I totally get it, one should be able to spend their hard-earned money, however and with whoever they see fit, including investing in risky assets like crypto.
As responsible and highly regulated institutions, it is their duty to protect their customers from investing in fraudulent schemes or tokens that most folks don’t necessarily understand or know anything about.
The recent Squid Game token shenanigans is a perfect example of this.
Retail investors piled into SQUID after the token was hyped as the next big project to moon. Even large media outlets were giving this coin oxygen.
SQUID was billed as a token that could be used for a new online game inspired by the Netflix series – which tells the story of a group of people forced to play deadly children’s games for money. The game was due to go live this month.
But it turned out to be nothing but a big swindle. I mean, let’s face it, the name alone was enough to raise eyebrows, but sadly temptation got the better of many.
The Squid Game token developers walked away with over $3 million of investor funds, and there is nothing anyone can do about it.
The crypto ecosystem is rife with so-called “rug pull” schemes wherein token founders quickly abandon their projects and take investor funds with them by swapping the project coin for cash.
This meme coin craze is making people do all kinds of madness, including risking their entire life savings in the hope of becoming the next crypto millionaires.
One investor in China, for fear of missing out, lost his entire life savings in a matter of hours after investing in SQUID. He blames the media, Binance and everybody else, but he and the lack of regulation are only to blame.
Cryptocurrency regulation is desperately needed to ensure global legitimacy; these large scale scams need to be stopped.
The space doesn’t need new rules. It just needs regulation.
If you want to invest in crypto, do so sensibly and with an FCA regulated firm.