‘Squid Game’ cryptocurrency turns out to be a scam, developers steal over $2 million
The anonymous creators of a Squid Game cryptocurrency have pulled the rug on the project, reportedly running off with over $2 million worth of their investors' proceeds and crashing the value of the $SQUID coin.
Before its developers disappeared, $SQUID peaked at $2,861 on Nov. 1 morning then plummeted to $0 in 15 minutes, according to CoinMarketCap. Then suddenly, the coin's website and Medium account disappeared while its Twitter account was pulled due to "suspicious activity."
"I lost everything," a $SQUID holder told CoinMarketCap. "The price was multiplying at an abnormal level. I was staring at my computer screen and I watched $SQUID fall in a matter of minutes. There was no way to withdraw my funds intact."
Crypto rug pull
The token, inspired by the Netflix hit K-drama Squid Game, was launched last week and its value skyrocketed to as much as 310,000% even though little was known about its developers.
According to the cryptocurrency's website, they were going to launch a Squid Game-based play-to-earn game this November. News outlets like the BBC, Yahoo News, Fortune, CNBC, and Business Insider ran stories about the token and its potential, but some users and tech news site Gizmodo noticed a few details that made it obvious the coin was a scam.
The tech site cited how the project's white paper was riddled with grammatical and spelling errors and how people can put money in it, but can't take it out. Additionally, the Telegram channel and Twitter page set up by the creators didn't allow for replies from users. Moreover, Netflix wasn't affiliated with the crypto in any way.
What happened with $SQUID is what crypto investors call a "rug pull" scam. This occurs when a crypto's creators abandon a project after stealing their investors' money.
This isn't the first time a pop culture phenomenon like Squid Game- nspired crypto scammers. Earlier in the year, a similar rug pull happened with a cryptocurrency using images from Disney+'s Mandalorian.