Netflix’s popular online drama “Squid Game” gave birth to a cryptocurrency named after the brand-“SQUID” (SQUID).The price of this token has soared by more than 230,000% in the past week, reaching $2,861.80 at one time, and then it collapsed and dropped to zero on Monday morning Eastern Time.The sudden boom and bust of Squid Coin reveals the other side of the cryptocurrency mania: demand may suddenly dry up, or worse, developers may abandon a project and abscond with funds. The scam of rug pull.
The so-called “pull the carpet” refers to the withdrawal of support from cryptocurrency developers, abandoning a project without warning, and taking away investors’ funds. This is a typical exit scam in the DeFi field.
It is unclear whether this is the case for Squid Coin, but CoinMarketCap has previously issued a warning that it has received “multiple reports” stating that users cannot sell Squid Coin on the decentralized exchange PancakeSwap.
Now, squid coins are considered a scam, because it is clear that investors cannot sell after buying. The scammer behind the coin allegedly stole $2.1 million in investor funds.
WonderFi CEO Ben Samaroo said that the large-scale hype surrounding this token highlights the power of social media.
He said: “The lessons learned show how much the social media world has played in finance now. We have seen such tokens in cryptocurrencies, and we have seen them in GameStop and Robinhood. This is further proof that finance has already It’s changed and it’s very social now. Who is in control of power? It is the people who control power.”
Antoni Trenchev, the co-founder of Nexo, a cryptocurrency lender, said: “Betting on the right currency can bring eye-popping wealth. The problem is that things that go up linearly tend to be similar. Way back.” He added, “You heard that some Mimu investors don’t care about losses, but once they start to sell, there will be a knock-on effect, so it’s wise to invest only the money you can afford to lose.”