The Squid Game-based cryptocurrency (but not linked in any way to the Netflix show, other than the name) has lost all its monetary value: it would seem that the creators have perpetrated a scam. What in the jargon is called “rug pull“, A practice unfortunately not new in the world of virtual currencies.
Squid Game cryptocurrency: was it all a scam?
Yesterday, the SQUID currency had reached its all-time high in a very short period. In fact it had come to $ 2,800 for each token, a record of growth. Certainly linked to the success of the series Netflix, which has no connection with cryptocurrencies: the creators of the digital currency simply took advantage of the show’s famous name. And yesterday evening they decided to collect all income linked to the share value of the currency, causing the price to drop.
This happened because the creators owned a large amount of the cryptocurrency, which they sold all together. At the same time, they have closed the site which sponsored it. So they made millions, selling each token for nearly three thousand dollars. But the sale en masse quickly depreciated SQUID, which now it no longer has any value.
Market capitalization (the total value of created coins) has reached nearly two million dollars, but now the value is completely reset. It would seem that the creators used the scam technique of “rug pull“, Literally to“ remove the carpet from under your feet ”. Pump the value of a financial product to its maximum, then sell all the shares together and bring the price down, after having cashed in. This means that even those who bought the very first currencies, at the lowest initial value, lost money. The only ones who have earned it are the creators.
Easy to buy, impossible to sell
The Squid Game cryptocurrency had immediately attracted a big media attention. The creators of SQUID knew this. Netflix’s event series has had some terrific ratings. But not only that: with Halloween in the middle (and also Lucca Comics), half the world bought the Squid Game jumpsuits and masks to celebrate the series.
The creators of the currency had wagered that creating a coin with the show’s name would attract attention in all sorts of media. And it worked. The story was picked up by tested all over the world, shared on each social. It was the new “joke” coin that everyone wanted. A bit like Dogecoin a few months ago, where everyone had commented on the “crypto of memes” (even if Dogecoin continues to be listed and it is not a scam).
This has led the cryptocurrency to grow tremendously, despite the uncertainties of experts. And above all, despite the protests of Netflix, which would not have wanted the name of one of its series linked to this unauthorized operation. And that seems to have turned out to be a scam, with many users having lost their entire investment.
Indeed, it appears that some of the investors have had a hard time selling the cryptocurrency. A feature of SQUID was the impossibility of selling everything together, to avoid so-called ‘dumping’ by large investors. In fact, it seems evident that it was a mechanism for prevent you from responding to the clearance sale by the creators, who thus managed to earn as much as possible by dropping the value of SQUID.
Squid Game games have managed to capture our attention and our imagination. But it would appear that the most ruthless game is the cryptocurrency that took advantage of the show’s good name.