2021 was an incredible year for crypto investors. Tokens such as
Polygon ($MATIC), Sandbox ($SAND), Decentraland ($MANA) had
incredible gains, with investors realizing returns in excess of
100% of their original investment. Yet,
investors may be looking at a hefty tax bill for 2021, if they
failed to plan accordingly.
Crypto investors were not the only category of persons to
proser. 2021 was also a great year.for crypto-scams. Epic
failures such as
Squid Game ($SQUID) literally wiped millions of dollars,
generating substantial losses to thousands of investors. Launched
on October 26, SQUID went from a $0.01 to a peak of $2,862 in a
week, before falling to $0.00 after the developers performed what
is commonly known as a “rug
pull” (meaning that the developers abandon the project by
selling their tokens and taking the investors’ money – hence
“pulling the rug out” under the investors’ money). In
these cases, the investors holding the tokens sustain giant losses
without further possibility of recovery.
One of these “rug pulls” was performed on the last day
of 2021-in less than 6 hours. The $YEAR token
was launched as a “year in review” of the user Ethereum
transaction history. The scam prohibited the investors from selling
because the token developer activated certain code – embedded
within the token software – preventing the investors from selling
their tokens and only allowing purchases. This caused the price to
soar to 0.0009 ETH only…
