It is not difficult to create a new cryptocurrency, the difficult thing is that there are people who invest in it, and that is what happened with a digital token inspired by the popular South Korean Netflix series Squid Game.
From one day to the next, it has lost almost all its value, suggesting that it was a scam.
Squid was billed as a “play-to-win cryptocurrency” (play-to-earn cryptocurrency), and its price had risen sharply in recent days, attracting more investors. Last Tuesday, Squid was trading at just 1 cent. In less than a week, its price had risen to more than $ 2,856.
The play-to-earn cryptocurrency It is where people buy tokens to use in online games and can earn more tokens which can then be exchanged for other cryptocurrencies or national currencies. The problem is that it did not allow people to resell their tokens.
This scam, called «rug pull“Occurs when the promoter of a digital token attracts buyers, stops trading and takes the money collected from sales.
In total they have taken 3.38 million dollars, as reported in Gizmodo.
Cryptocurrency experts had already warned that it was a scam. The thing about being able to buy Squid and not be able to sell it was weird, a classic sign of this type of scam. On the other hand, the website contained many spelling and grammatical errors. The website is no longer online and the social media accounts promoting the tokens have also disappeared.
Squid was available for sale on decentralized crypto exchanges, without a central authority, making it difficult to track down criminals now.