'Squid Game' Cryptocurrency Collapses, Scammers Vanish With Millions
The memecoin launched on October 26 and had no affiliation with the popular Netflix show - the first red flag.
Those who attempted to profit off the latest cryptocurrency fad — $SQUID, a memecoin inspired by the No. 1 Netflix show — saw their investments plunge to $0 after the coin's creators disappeared with $3.38 million.
The buzzy memecoin was never actually affiliated with the Netflix show — the first red flag. But there were other signs something was amiss. The creators locked investors' liquidity for a certain period of time, meaning that once people bought, they couldn't sell. The coin's whitepaper claimed that the limitation was part of an "anti-dump" protocol that would fuel $SQUID's growth.
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Other causes for concern included a three-week-old website riddled with spelling and grammatical errors, a Telegram channel that didn't accept comments from the public and a Twitter account that didn't allow people to reply to posts.
Despite its suspicious cicumstances, the coin did see explosive growth — peaking at $2,861, per CoinMarketCap. Of course, that came to an end when the anonymous scammers drained the project's fund and disappeared in a move the crypto community refers to as a "rug pull."
The warning signs might not have been enough for people eager to capitalize on the trend. Buying the right crytocurrency at the right time can certainly make investors rich, as recent news surrounding the Shiba Inu (SHIB) coin has shown. SHIB soared to record highs and grew a $13,000 investment to a staggering $5 billion in the span of one year. Unfortunately, it looks like early $SQUID adopters got beat at their own game.
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