A cryptocurrency based on the hit Netflix show Squid Game was revealed to be a scam after the coin’s developers made off with millions of investor dollars.
As of Sunday afternoon, SQUID had a value of approximately $37.75 per coin, which skyrocketed in less than a week from $0.01235 per coin on its Tuesday launch date. The coin reportedly reached a high of $2,861.80 each before dropping to $0 early Monday morning.
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The coin’s market capitalization hit approximately $2.2 million before the plunge, according to cryptocurrency website CoinMarketCap.
Streamer watches his life savings go to zero after Squid Game Token rug pulls and drops -99.99%. pic.twitter.com/6hoDGBJeZO
— Mr. Whale (@CryptoWhale) November 1, 2021
CoinMarketCap warned traders of reports that some users were having difficulty selling the coin to collect their profits.
“We have received multiple reports that the users are not able to sell this token in Pancakeswap. Please exercise caution while trading!” CoinMarketCap said on its website.
The Whitepaper PDF description of the coin described an “anti-dump mechanism” which may be responsible for reports that investors were unable to sell the coin.
“As you can see, $SQUID implements an innovative anti-dump mechanism. Buying in the market will release selling credits with a rate of 2:1. $Marbles is the token built on BSC chain as the key for Squid Game. Obtaining Marbles without using violence is the key to Squid Game. Marbles holders will have the right to trade SQUID freely,” the creators say in the document .
According to data from the crypto exchange Binance, the funds were transferred to “SQUID Token Rug 2,” and details of the transaction were hidden. The coin’s website and Whitepaper were deleted as well.
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The developers reportedly sent a message on their Telegram channel saying that they no longer wanted to run the project because of hackers.
“Someone is trying to hack our project these days. Not only the twitter account @GoGoSquidGame but also our smart contract. We are trying to protect it but the price is still abnormal,” the message reads, according to a Fox Business report. “Squid Game Dev does not want to continue running the project as we are depressed from the scammers and is overwhelmed with stress [sic]. We have to remove all the restrictions and the transaction rules of Squid Game. Squid Game will enter a new stage of community autonomy.”
