A Nigerian cryptocurrency investor has narrated how he lost everything in less than 5 minutes of becoming rich in the crypto world.
He shared his experience on a popular online forum, Reddit as he indicated that he made, $1.3 million after throwing his money behind the popular ‘Squid’ coin that came up following the Netflix series ‘Squid Game’.
He emphasized that after seeing the value of the coin hitting 2 million dollars the coin value shot down to $0.
Before the coin made its way into the crypto platforms, reports came up that it was likely to be a scam dubbed “Rag Pull” which means the creator of the coin makes quick cash out of their coin for real money.
The crypto investor stated that he got intrigued and wanted to invest in the squid coin for research purposes.
In his words, “I thought, let me put $10(N4000) in this just for funnies. I got around 661 SQUID. As the days went by, I started seeing it climb, 1$, 2$, 5$, 10$, 30$, and I was thinking… Imagine if I can take this money out. Of course, I knew that I wouldn’t ever take the money out, I was fully convinced of that, but it was fun to see it happen.”
Narrating the experience he said, “I’m now able to say I was a crypto millionaire at some point of my life, never “put money on scam coins, always do your research and be careful on what you invest.
Not being able to convert a cryptocurrency into a traditional currency is just one of the major risks of investing in crypto. You’ll only be able to get money back out if there’s demand, so you could lose all your money.
If the value drops to zero, either because its a scam or because investors lose confidence, you could be left holding worthless digital coins that you can’t sell on. Newer coins are even riskier than more established ones like Bitcoin and Ethereum – not least because there’s a higher risk of being scammed”