Place/Date: - February 10th, 2022 at 7:41 pm UTC · 3 min read
Many new cryptocurrencies launch every month. After the huge successes of 2021, in which almost every coin broke through to reach new all-time highs, it is not a surprise that many people are rushing to create new projects. Unfortunately, not of all these creators have the best intentions. Some developers will take advantage of the lack of knowledge that some potential investors have about crypto and defraud them of their money. Thanks to the mostly decentralized nature of the crypto market there is often nothing that can be done to halt scams and scammers.
Many new projects are made and backed by anonymous creators, in the style of the pseudonymous Bitcoin (BTC) founder Satoshi Nakamoto. Seesaw Protocol (SSW) is one of these new cryptocurrencies, and its creators are yet to be named. Suffice it to say, after a series of recent high-profile crypto scams, this anonymity has been enough for some to label SSW a scam. There is some FUD (fear, uncertainty, and doubt) concerning Seesaw Protocol, but despite this, it is a far cry from a real crypto scam. Squid Game (SQUID) is possibly the biggest example of a recent scam or ‘rug pull’.
As defined by one of the market-leading listings platforms, CoinMarketCap, a rug pull is a “malicious manoeuvre in the cryptocurrency industry where crypto developers abandon a project and run away with investors’ funds. Rug pulls usually happen in the decentralized finance (DeFi) ecosystem, especially on decentralized exchanges (DEXs), where malicious individuals create a token and list it on a DEX, then pair it with a leading cryptocurrency like Ethereum.” Once a significant enough amount of people have exchanged their ETH for the scam coin, the creators will then withdraw everything which drives the price of the coin to zero. The investors lose out and the creators make off with their money.
Seesaw Protocol (SSW) is not a scam. Their comprehensive white paper is available to view here.
The presale itself has been underway for just over two weeks and has so far been an astounding success. This could raise eyebrows in itself but all the evidence points towards legitimacy. The price started at $0.005 and has increased by more than 500% to $0.031 at the time of writing.
There are several red flags and warning signs to look out for in a potential rug pull. They include: