Scammers steal $3.3 million by pulling rug from under ‘Squid Game’ cryptocurrency investors

November 2, 2021

Within days of launching, SQUID coin was shuttered and its creators made away with millions, suggesting it was a cryptocurrency scam known as a “rug pull.”

Rise in popularity: Although unaffiliated with the hit Korean Netflix show “Squid Game,” the cryptocurrency took advantage of its namesake’s popularity to convince more than 40,000 people to invest.

The currency began at just $.01 per token and inflated 83,000% to reach a peak of $2,856.65 before ultimately crashing.
The tokens were touted as the currency for a forthcoming “play-to-earn” online game reminiscent of the Netflix series which was promised to go live later in November.
Some investors reported being taken in by the coin’s name, believing there was a relationship between the currency and the Netflix project.

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Rapid collapse: The currency is now worth $0 and its social media, website, and email are all now defunct, with the creators’ identities yet unknown.

A red flag was raised early on by skeptics who noticed it was nearly impossible to sell the coin and cash out after purchasing.
SQUID is now being labeled as a “rug pull,” referring to a scam in which the creators of a cryptocurrency cash out for real money and stop others from trading, effectively draining the currency of value.
One Shanghai investor told CNBC he lost his entire life savings of $28,000 to the scam.

Experts warn that just because a new cryptocurrency bears the name of a popular show or trend, investors should not assume any affiliation.

Featured Image via Netflix / “Squid Game”

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