Squid, which promoted itself as a “play to earn digital currency” has witnessed its rise in price these days, increasing by 1000%. However, CoinMarketCap has criticized this token for not being able to sell in several exchanges. This Squid game Crypto Scam is commonly known as “rug pull” by crypto investors.
Squid Game Crypto Scam: How It All Began?
This takes place when the marketers of the crypto token bring in buyers, stop any activity of trading, and goes off with the money that they raised from the sales. The Squid Game Cryptocurrency name is SQUID. The developers of SQUID have made nearly $3.38 million as per the reports of the technology website Gizmodo.
A play to earn digital currency is where people purchase tokens to avail themselves in online gamers and can earn more crypto which can be exchanged later for other national or digital currencies. Last Tuesday (26.10.2021), Squid Game crypto was trading at just 1 cent. In just less than a week the Squid Game Crypto highest price jumped to $2,856.
According to CoinMarketCap, its value has now decreased by 99%. The squid was constructed as a token that can be used for the latest online game that was inspired by the Netflix series which illustrates the story of a group of people who are forced to play a dangerous game for money. The game was scheduled to go live this month. However, many digital currency experts have warned the investors about this Squid Game Crypto scam. The most frequent telling was that those who have purchased this coin were not able to sell them. A similar warning was issued by CoinMarketCap as well. Critics have also said that the official website had many grammatical errors and spelling mistakes. However, the website is no longer online, and the social media handles that promoted the launch of this new coin have also vanished. If you were wondering Squid Game Crypto where to buy, it was available on their official website which has now proven to be a scam.
According to Eswar Prasad who is an economist at the Cornell University,
“It is one of many schemes by which naïve retail investors are drawn in and exploited by malevolent crypto promoters.”
He asserted that the buyers need to be aware when purchasing digital currencies as regulatory oversights are missing. He further added that,
“In fact, open pump and dump schemes are rampant in the crypto world, with investors often jumping in with eyes wide open, perhaps hoping that they can ride the wave and dump their holdings for a quick profit before prices collapse.”
SQUID crypto was available for sale on decentralized digital currency exchanges that include DODO and PancakeSwap, which enables buyers to connect directly to sellers, without an intermediary. According to a crypto expert,
“Nowadays new coins can be listed on decentralized exchanges on the first day they are created, without any regulation or due diligence. So you could be buying coins from anyone with an agenda.”
The Squid Game Crypto Scam In Details
A group of unidentified clever scamsters successfully drained off millions of dollars from victims by utilizing the fame of the hit show on Netflix – Squid Game. The Squid Game Crypto scam, which primarily raised suspicions in some sectors, targeted naive crypto investors who could not identify the initial red flags in the whole functionality. This type of scam is known as the “rug pull” scam.
Rug pull is a form of scam where developers of a digital currency liquidate the investments, leaving none for others. Because of this encashment of cryptocurrency to fiat currency, the Squid Game Crypto value of the digital currency decreases to negligible levels, which is exactly what occurred with SQUID, a digital currency token created and promoted as ‘play-to-earn,’ leaving investors to dry.
The current Squid Game Crypto price is $0, and there is nothing left for the investors to save from what was never a legal operation. The Squid Game cryptocurrency price in India is 0 INR. Its website and Whitepaper also vanish. It left no traces to start the investigation. According to notice offered by CoinMarketCap,
“We have received multiple reports that the website and socials are no longer functional & the users are not able to sell this token in Pancakeswap. Please do your own due diligence and exercise extreme caution. This project, while clearly inspired by the Netflix show of the same name, is not affiliated with the official IP.”
The growing popularity of SQUID was also being helped by TA575 which is a big cybercrime actor to circulate the Dridex malware. As per the report, TA575 has been transmitting malicious email laden along with Dridex which is a banking trojan that is hidden within the Excel Files that have been attached. The temptation is simple, feeds on fans’ prediction of the latest season with the subject lines like,
- “Squid Game is back, watch the new season before anyone else.”
- “Invite for Customers to access the new season.”
- “Squid game new season commercials casting preview”
- “Squid game scheduled season commercials talent cast schedule”
The Bottom Line
The Squid Game Crypto scam won’t be the last scam in the crypto space. There are many more scams to come. So it is on the investors who do a good research before they start to invest in any new coin and gain experience. The experience will come only if they do the good practice. So they should begin with investing in popular coins, understand how the market works, and then move forward with new coins.