A digital token inspired by the popular South Korean Netflix series Squid Game has lost almost all of its value as it was revealed to be an apparent scam.
Squid, who marketed himself as a “play-to-win cryptocurrency,” had seen its price skyrocket in recent days, increasing by thousands of percent. However, as the BBC reported, it was criticized for not allowing people to resell its tokens. This type of scam is commonly called a “carpet tug” by crypto investors. This happens when the promoter of a digital token attracts buyers, stops trading, and takes the money raised from sales.
Squid developers have made an estimated $ 3.38 million (2.48 million pounds), according to technology website Gizmodo. Last Tuesday, Squid was trading at just 1 cent. In less than a week, its price had risen to more than $ 2,856. Its value has now plummeted by 99.99%, cryptocurrency data website CoinMarketCap said. Squid was billed as a token that could be used for a new online game inspired by the Netflix series,
which tells the story of a group of people forced to play deadly childhood games for money. The game was supposed to be available this month. However, cryptocurrency experts had warned of several telltale signs that it was likely a scam. Most telling was that the people who bought Squid tokens were unable to sell them. Critics also noted that his website contained many spelling and grammatical errors. The website is no longer online and the social media
accounts promoting the tokens have also disappeared. It is one of many schemes whereby naive retail investors are lured in and exploited by malevolent crypto promoters,” Cornell University economist Eswar Prasad told the BBC. Professor Prasad said that buyers should be aware when buying cryptocurrencies, as there is almost no regulatory oversight. In fact, open pump-and-dump schemes are rampant in the cryptocurrency world, and investors.
often jump in with their eyes wide open, perhaps hoping they can ride the wave and dump their holdings to get a quick profit before prices crash, “he said. Squid was available for sale on decentralized crypto exchanges, including PancakeSwap and DODO, allowing buyers to connect directly with sellers, without a central authority. Today, new coins can be listed on decentralized exchanges on the first day they are created.