In current weeks, the South Korean Netflix collection known as Squid Sport has taken the world by storm. On the again of this recognition got here a singular cryptocurrency named after the present: Squid. Nonetheless, this crypto is now within the information for all the flawed causes.
The premise of the ”Squid Sport” collection noticed contestents gamble with their lives in a merciless event of life or loss of life. While those that invested into the crypto primarily based on the collection may not have confronted consqeuences as critical as these on display, there have been main monetary losses for some.
On the again of Squid Sport’s recognition, the worth of Squid Coin surged to an unbelievable $2,860. However a nightmare was coming. Digital information reveal that the creators of the Squid Coin, who stay unknown, took over $3.3 million of the cash funds and brought about the worth to drop to zero.
Within the crypto sphere, that is known as a ”rug pull”. It’s when the creators of an altcoin ditch the undertaking by switching the digital forex for fiat cash. The liquidity of an altcoin is quickly draining and the worth plunges to zero with buyers not noted of pocket and successfully scammed.
The Squid Coin, a ”play-to-earn” cryptocurrency, launched in late October with a smooth social media marketing campaign that brought about a flood of buyers trying to make the most of the hype surrounding the Squid Sport collection. The undertaking’s Twitter and Telegram accounts shortly amassed over 100,000 followers.
The promoting level of Squid Coin was to permit customers to participate in on-line variations of the video games and contests depicted within the violent dystopian TV collection the place those that lose are then killed for sport. Netflix didn’t instantly touch upon the incident however has reportedly mentioned it’s not affiliated with the cryptocurrency.
Following a launch value of $0.01, the worth of Squid Coin surged over 23 million % to an eye-watering $2,861.80. Following the success of different themed altcoins like Shiba Inu and Dogecoin, there was nothing seemingly out of the abnormal occurring.
“Squid Sport Dev doesn’t wish to proceed working the undertaking,” the builders wrote on their Telegram channel Monday, saying they have been “depressed” by scammers and “overwhelmed with stress”. The undertaking’s e mail account subsequently stopped taking new mail.
Nonetheless, while this incident is getting used as gasoline by anti-crypto crowds, there have been quite a few alarm bells sounded by crypto observers earlier than the rug pull incident. From Squid Coin’s social media accounts now permitting followers to remark and a growth white paper that was suffering from spelling errors, there have been many warning indicators however individuals determined to speculate anyway.
While the crypto sphere has seen its justifiable share of scams, investing in digital cash is being much more consumer-friendly than again within the early days. From trusted brokers like eToro to financial institution regulators working to assist monetary establishments make investments and make the most of digital forex, it could seem that the times are numbered for scams similar to that of Squid Coin.