SQUID was a type of cryptocurrency known as “play-to-earn,” in which users purchase digital tokens to use in online games. These tokens can be traded for other cryptocurrencies or national currencies at a later date. This one was created for an online game based on the Netflix series.
Squid, the latest cryptocurrency “meme coin” craze inspired by the Netflix smash series “Squid Game,” lost all of its value on Tuesday in an “apparent fraud,” according to major news outlets. It appears that the episode is part of a fraud known among cryptocurrency investors as a “rug pull,” in which the promoter of a digital token forcibly halts all trading activity and escapes with the funds received through sales. If the scam is confirmed, it will be an alarming event in a world where people are increasingly trying to profit from the bull market in ‘meme coins,’ including some well-known ones like Shiba Inu coin and Dogecoin, without necessarily having a complete understanding of how cryptocurrency investing works.
“Meme currencies” like Dogecoin and Shiba Inu have recently risen in value, often for no apparent reason, attracting investors looking for large profits. Squid, another meme currency phenomenon, soared more than 230,000 percent in the last week to $2,861.80, according to CoinMarketCap prices, before plummeting 100 percent to less than a penny as of Monday in New York.
Squid’s creators have now fled with an estimated $3.38 million (£2.48 million), according to the technology website Gizmodo.
The squid was a “play-to-earn” cryptocurrency, in which users purchase digital tokens to use in online games. Later on, these tokens can be swapped for other cryptocurrencies or national currencies. This coin was utilized in an online game based on the Netflix series, which is about individuals who are compelled to play dangerous games for money.
Big gains aren’t necessarily a guarantee in a market as untamed, expansive, and speculative as crypto, yet it nevertheless attracts hundreds of speculators seeking to make a quick profit, especially given the fact that value inflation is sometimes fleeting.
In an email to the Bloomberg news agency on Sunday, Antoni Trenchev, co-founder of crypto lender Nexo, said, “Betting on the correct currency may lead to jaw-dropping gains.” “The difficulty is that what rises in a straight line tends to fall in a straight line as well. You may have heard that some meme coin investors are unconcerned with losses.