Highlights
- The Squid Game inspired token SQUID turned out to be a rug pull as predicted by some
- It went up by almost 75,000% and crossed over $2,850 before crashing to almost zero
Squid Game: Riding On A Name
Squid Game is a Netflix show that has shot to worldwide fame. It is a show that highlights how debt-ridden players participate in a series of children’s games. The players play the game with their eyes on a huge jackpot that is at stake.
It is not uncommon for scammers to ride on the fame of a big name unethically. The cryptocurrency SQUID inspired by the show caught the imagination of traders with its name. Leading news channels and press reports gave the token more publicity. The creators of the token also claimed that it would be used as part of a game that would soon begin. SQUID started small at $0.01 on October 26th and grew to over $38 by the 31st and $90 by November 1st. It then peaked at an unbelievable $2,850 before crashing to $0.002.
Statistics and chart are available at CoinMarketCap.
There were warning signs before the crash.
- Traders were unable to sell their SQUID. This was explained by the creators of the token as the result of an anti-dumping feature and as part of the game
- The makers made false claims of being affiliated with the Netflix show Squid Game
- There were spelling and grammatical errors on the token’s website
- Gizmodo tweeted and reported that they suspected that the token was a scam. They noted that the token’s website was very recently registered. The so-called whitepaper had many spelling and grammatical errors. Their social media accounts restricted commenting and replies. Traders were able to buy it but not sell it. There was a fake endorsement on the token’s website.
Despite all these warnings, there are many traders and investors today who have found that their SQUID is worth next to nothing. The creators of the token have vanished as have the social media accounts and website.
The Takeaway
Irresponsible reporting and the popularity of the Netflix Show Squid Game gave this token more publicity than it warranted. However, the press coverage that the rug pull has attracted will also serve to educate people about such scams. Hopefully, investors and traders will be more wary of tokens and offers that seem too good to be true. Due diligence is a must when you are investing in something new.
