Mark Weaden
The hype surrounding the Squid Game crypto token collapses after an apparent scam
In an industry full of hype, the hit South Korean Netflix series Squid Game had a cryptocurrency named after it called SQUID. Traders flocked to buy SQUID at a low price, with millions of dollars in the coin purchased in a matter of hours.
However, it was recently revealed that the whole thing was an apparent scam. After the scam was revealed, the marketed “play-to-earn cryptocurrency” saw its price drop to more or less zero, with the scam artists making away with millions of dollars.
What happened to SQUID?
At release, SQUID coin soared by thousands of percent. In the original report, we covered the fact there were criticisms of the coin, as owners were unable to resell their tokens. This should have been a big red flag for many, but as traders continued to pour in money the scammers released soon would be the time to pull the plug.
The SQUID coin was well-marketed and took advantage of the interest in the TV show. The developers made off with an estimated $3.38m according to the tech website Gizmodo. This is no surprise, given that last Tuesday SQUID was trading at 1 cent, less than a week later and it rocketed to $2,856.
But, it wasn’t just the fact it was Squid Game-related. The “play-to-earn” concept is very appealing to many crypto enthusiasts too, with games like Axie Infinity gaining worldwide recognition and the price of its native coin hovering around the top 20 coins.
Warning signs for crypto
For a long time, the crypto industry has been plagued with scams and bad actors trying to take advantage of users. In the case of SQUID, there were some tell-tale signs that would have helped those traders involved from avoiding losing their coins.
Many critics have cited the fact the website and social media accounts were riddled with spelling mistakes and grammatical errors. But, blinded by the possibility of making a fortune, many investors overlooked these glaring issues. Since the scam was revealed, the website and social accounts have gone offline.
With no regulatory oversight in the crypto space, we are likely to see many more scam artists try to replicate the SQUID coin. Pump and dump schemes are rampant in the crypto world, which is what this coin was presented as and certainly how many traders read it.
