HomeBlockchainSecuritySquid Game (SQUID): the $3 million crypto scam

Squid Game (SQUID): the $3 million crypto scam

The cryptocurrency that is based on the popular South Korean series Squid Game (SQUID) has collapsed in price. The developers appear to have created a scam, cashing in on more than $3 million

The Squid Game (SQUID) scam

SQUID, which was launched at the end of October, presented itself as a “play-to-earn crypto” based on the Binance Smart Chain (BSC) and inspired by the very popular Netflix series Squid Game. 

Play-to-earn cryptocurrencies are all about the concept of people earning more tokens in online games and exchanging them for other cryptocurrencies or national currencies.

According to reports, however, it seems that SQUID turned out to be a crypto scam, and its developers reportedly cashed out to the tune of exactly $3.4 million

In fact, looking at SQUID’s chart, the coin reportedly experienced an exaggerated pump yesterday that saw its price rise from $38 to around $2,800, before plummeting to $0 that same day. 

At the time of writing, Squid Game’s website has disappeared, along with any other social media presence. The Twitter account, with 57,000 followers, was blocked due to “unusual activity”.

Squid Game, the scam was in the air

On Friday, before the price pump&dump on the following Monday, someone reportedly suspected SQUID of being a scam. According to Gizmodo, the play-to-earn crypto already had the potential to be described as a fraud

Here are the details pointing to it being a scam:

“How do we know the Squid Game coin is a scam? You can put real money into the cryptocurrency, but there’s no evidence you can ever take it out. That’s simply known as theft”.

Not only that. Like the Mando scam, launched in early 2021, right after Disney’s Mandalorian streaming show, SQUID has also taken advantage of the wave of momentum with the Squid Game movie. Here’s how the analysis continues:

“It’s extremely common for cryptocurrency scam artists to use brands from TV and movies. [..] The website for the new Squid Game crypto looks comprehensive enough, with sections about very official-sounding things like a white paper and an audit. But anyone who’s seen cryptocurrency rug-pulls before, like the Mando coin, will recognize the style. The website, available at the domain SquidGame.cash, was registered less than a month ago, on October 12”.

Squid game
Squid Game (SQUID): the $3 million crypto scam

The case of SQUID and comments from crypto exponents

Some crypto figures have commented on the SQUID case. Such as the main contributor to the DeFi Sovryn Bitcoin protocol, Edan Yago who commented: 

“Squid Game the token, was true to the game presented in the Netflix show: Greed made victims of the participants, who all got financially slaughtered. Many will see this as proof that governments should try to regulate the space. However, no government can regulate borderless activity. Crypto is self-regulating, and participants should seek out those platforms that provide the best self-regulation”.

Martha Reyes, Head of Research at digital asset prime brokerage and exchange BEQUANT, also said:

“The Squid Game rug pull was very unfortunate. Scammers banked on the name and made out with millions, while investors and the media jumped on the bandwagon without doing their due diligence. Even by crypto standards, the returns seemed unbelievable, surging 7,500% in a matter of hours. As in any investment , if it sounds too good to be true, it probably is. Bequant is working with other companies in the space to identify and explain the similarities and differences between defi and traditional markets and outline the risks so that regulators can create an appropriate framework for the sector. Innovation should be allowed to thrive but bad actors need to be given the ‘red light'”.

Not only that, Ruud Feltkamp, CEO of cloud-based automated cryptocurrency trading bot Cryptohopper, also explains the importance of DYOR in investing:

“It is characteristic of the current hype in which crypto is located that people no longer think and seize their opportunities with a lot of risks. Scammers take advantage of that. The logic is not entirely crazy. If a meme token could be worth billions, why not this? At the end of this cycle, which is expected in early January, most of the tokens will plummet in value, and only a small amount of projects will remain. These will then have to prove their worth. So keep paying attention to what you invest in and DYOR (Do Your Own Research)”.

Stefania Stimolo
Stefania Stimolo
Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.