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.
— Charlie Bilello (@charliebilello) November 1, 2021
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”