Squid Game inspired cryptocurrency collapses in apparent scam
Reuters
Tribune Desk
Publish : 02 Nov 2021, 04:54 PMUpdate : 02 Nov 2021, 04:57 PM
The digital token inspired by the popular South Korean series "Squid Game"has lost almost all of its value since it was revealed to be an apparent scam.
On Monday morning, the value of a Squid coin collapsed from $2,860 down to zero.
The creators of token cleaned out $3.3 million from the system, reports the Washington Post.
This kind of scam is commonly known as "rug pull" by crypto investors. Essentially, the token promoter draws buyers and then stops trading at one point.
Later they quickly drain the product’s liquidity, effectively destroying its value and leaving other investors with nothing, says the report.
Several social media platforms promoted this new cryptocurrency last month. The token's value skyrocketed as investors rushed to buy the coins.
This project's Twitter account, which was now suspended by Twitter for "unusual activity" gained more than 57,000 followers, and its Telegram channel had more than 71,000 subscribers.
The Squid token was billed as a currency for an online game inspired by the Netflix show, which tells the story of a group of people forced to play deadly children's games for money. The game was scheduled to launch this month.
However, several crypto experts had previously warned the investors that it could be a scam, the BBC reported.
Many critics had also pointed out the website's spelling and grammatical errors, which reflected its unreliability.
The squid token was available for sale on decentralized crypto exchanges including PancakeSwap and DODO, which allows buyers to connect directly to sellers, without any central authority.
Squid Game inspired cryptocurrency collapses in apparent scam
The digital token inspired by the popular South Korean series "Squid Game"has lost almost all of its value since it was revealed to be an apparent scam.
On Monday morning, the value of a Squid coin collapsed from $2,860 down to zero.
The creators of token cleaned out $3.3 million from the system, reports the Washington Post.
This kind of scam is commonly known as "rug pull" by crypto investors. Essentially, the token promoter draws buyers and then stops trading at one point.
Later they quickly drain the product’s liquidity, effectively destroying its value and leaving other investors with nothing, says the report.
Several social media platforms promoted this new cryptocurrency last month. The token's value skyrocketed as investors rushed to buy the coins.
This project's Twitter account, which was now suspended by Twitter for "unusual activity" gained more than 57,000 followers, and its Telegram channel had more than 71,000 subscribers.
The Squid token was billed as a currency for an online game inspired by the Netflix show, which tells the story of a group of people forced to play deadly children's games for money. The game was scheduled to launch this month.
However, several crypto experts had previously warned the investors that it could be a scam, the BBC reported.
Many critics had also pointed out the website's spelling and grammatical errors, which reflected its unreliability.
The squid token was available for sale on decentralized crypto exchanges including PancakeSwap and DODO, which allows buyers to connect directly to sellers, without any central authority.
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