Squid Game crypto value collapses, revealed to be $3.3m scam
CoinMarketCap issued a warning to potential buyers regarding the crypto
The new crypto SQUID inspired by the popular Netflix TV series Squid Game has now seen its value plummet to nothing as it has been revealed to be a scam.
SQUID had previously soared in value by more than 45,000%. The actual TV show Squid Game had broken records to become the most successful Netflix production of all time.
According to CoinMarketCap, at its peak, the highest value of SQUID was $2,856. On the 29 October, CoinMarketCap issued a warning on its SQUID token display page stating: “We have received multiple reports that the website and socials are no longer functional & users are not able to sell this token in Pancakeswap. There is growing evidence that this project has rugged. Please do your own due diligence and exercise extreme caution. This project, while clearly inspired by the Netflix show of the same name, is NOT affiliated with the official [intellectual property] IP.” PancakeSwap is a decentralised exchange on Binance Smart Chain (BSC).
This kind of scam is commonly referred to as a ‘rug pull’ by crypto investors. This is when the individual or organisation who promotes a digital coin attracts buyers, then stops all activity and disappears with all the money raised. The developers of SQUID managed to make off with an estimated $3.38m (£2.48m) according to technology website Gizmodo.
Play to earn
CoinMarketCap originally described the crypto as a “play to earn platform on BSC chain inspired by the Korean hit series on Netflix”. Participants needed SQUID tokens to play the game or restart if they fail, there were six games and only those who survived each one could play the next round. These games represented the six games played in the TV show Squid Game. Participants would be awarded SQUID and non-fungible tokens (NFTs) if they won a round.
The final round was ‘Squid Game’ cost 15,000 SQUID to enter and a level 4 NFT. As the crypto whitepaper stated, “the last winner will earn all the bonus in the pool”.
However, now all social media accounts for SQUID as well as the whitepaper have now been shut down.
Crypto experts had issued several warnings that SQUID could be a scam. The most obvious reason being that people who bought SQUID were not able to sell them. Additionally, the crypto’s website was filled with spelling and grammatical errors.