Squid Game Crypto Collapses in Reported $3m Scam
'Squid Game' token has recently collapsed as it is revealed to be a scam. The token was inspired by the popular Netflix series, Squid Game.
The pre-sale for Squid Game Tokens got off to a ridiculous start on 25 October, which saw the price of one token rise to $196. Within days it had plummeted back down to just below $20.
Gizmodo has traced some transactions made by the site's founders that appear to reveal plans to move funds into offshore bank accounts.
A Reddit thread from 29 October posted by a user called Squid_Help tried to dispel rumours that the project was a scam. They claimed that "SquidCorp's founders have been working on the project late into the night and at weekends for several months now". The post has since been deleted, according to Gizmodo.
This type of scam is usually known as a 'rug pull' by crypto investors. It's when promoters of an ICO use fake claims to try and generate hype in order to pump up the value of their tokens, before cashing in. The scam was popularised by Wolf of Wall Street Jordan Belfort and is often known as a 'pump and dump' scheme. This is where people would buy stocks that had been tipped off to some type of positive news.
Watch Out For Scams
The value of cryptocurrencies can be extremely volatile, which means it's easy for scammers to make money this way. There are other, more sophisticated variants of the scam that are harder to protect against.
Many people had their doubts after the website for the token had misspellings and grammatical errors. The website and social media pages have since disappeared.
Author: Moni Talks
Moni Talks is a cryptocurrency trading exchange and social platform that is dedicated to the crypto community.