Squid Game crypto token collapses in an apparent scam.
The hit Netflix series Squid Game had inspired a digital token. The digital tokens gained dramatically in value before becoming practically worthless. It appears that this is a scam.
Squid is a self-proclaimed “play-to-earn cryptocurrency“. In space of only a few days’ prices rose by thousands of per cent. Only days ago squid was trading at one cent. A few days later the price had risen to more than $2,856.
According to the BBC, people were unable to resell their digital tokens. Crypto investors call this type of scam a “rug pull”. Gizmodo, a technology website estimates that the developers of Squid have walked away with nearly £2.5 million.
CoinMarketCap is a cryptocurrency data website. They said that the digital token value has now dropped by 99.99%.
The website for Squid can no longer be found. Social media accounts have also disappeared which had been promoting the tokens previously.
Eswar Prasad is an economist at Cornell University. Speaking to the BBC he said: “It is one of many schemes by which naïve retail investors are drawn in and exploited by malevolent crypto promoters,”
“In fact, open pump and dump schemes are rampant in the crypto world, with investors often jumping in with eyes wide open, perhaps hoping that they can ride the wave and dump their holdings for a quick profit before prices collapse.”
Squid had made use of decentralised exchanges which means that regulation was lacking. Cryptocurrency expert Jinnan Ouyang commented: “Nowadays new coins can be listed on decentralised exchanges on the first day they are created, without any regulation or due diligence,”
“So you could be buying coins from anyone with any agenda.”
Thank you for taking the time to read this article, do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.