How Squid Game Cryptocurrency Scam Stole Millions

Popularity is a powerful force. Whether in the movie industry, business, or social media, many people dream of achieving it, while others follow trends in hopes of tapping into its influence. But what happens when something’s popularity will create a drastic blunder, leading to a million-dollar scam? This article explores how the massive success of Netflix’s South Korean Squid Game led to a million-dollar cryptocurrency scam that robbed countless investors of their money.

SQUID Token: The Origin

Netflix released Squid Game, a South Korean series, in September of 2021. Since its release, this series has become immensely popular, garnering a large following all over the globe. In fact, Squid Game gained such an audience so quickly, that it became one of the most-streamed shows on Netflix. It has accumulated an all-time high of 300 million individual streamers and nearly 3 billion hours of watch time. While this show was receiving popularity at that time, suddenly, in October 2021, a new cryptocurrency popped up that was about to do something big. This was $SQUID, also known as Squid Coin. This cryptocurrency token was named after that viral Netflix show, which helped it attract a massive following. This project was marketed as an exciting “play-to-earn” experience, allowing investors to engage in games inspired by the deadly challenges in the show.

The people behind Squid Coin assured investors that the token would give owners access to a sequence of games based on the challenges featured in Squid Game and that they had the chance of receiving rewards while they went along. This “gamified” nature of the coin was quite appealing to a large group of investors, many of whom ignored or were unaware of the red flags associated with the project.

SQUID Token: The Rise

Almost immediately after launching, this coin has experienced insane growth. It was also aggressively marketed through social media platforms, crypto influencers, and forums. This marketing strategy created a sense of excitement for this coin, and it seemed like a genuine opportunity for show fans and investors. As a result, many people were attracted to it and invested in this coin, hoping to capitalize on what appeared to be an exciting new opportunity.

Within a few weeks, this coin’s price dramatically rose, reaching its peak of $2,861 per token, and its market cap was reportedly worth over $20 million. The creators of SQUID Coin took advantage of the show’s popularity, promising massive rewards and even claiming that the coin could unlock “exclusive Squid Game-themed events.” As the coin’s value shot up; it looked like another success story in the world of cryptocurrency. But as often happens with these types of schemes, the rapid rise was based on shaky foundations, and things weren’t as great as they seemed.

Red Flags and Warning Signs

The popularity of the SQUID coin increased in huge numbers, such that many people ignored the red flags that later began to surface:

1. Lack of Transparency: One of the significant warning signs was the creators of this coin were anonymous. There was no clear information about who was behind the project. In any crypto project, transparency is really important, and the anonymity of creators always raises concerns.

2. Unclear Whitepaper: Many successful cryptocurrency projects have detailed whitepapers that explain their technology, project goals, and roadmap of the project. SQUID coin’s whitepaper was vague, with unclear and few details about its long-term vision, and only referenced the show’s theme as a selling point.

3. Unusual Tokenomics: The tokenomics of this coin were also odd. Investors quickly learned that the coin had a strange rule: you could buy the coin, but you couldn’t sell it easily. This made it difficult for investors to cash out, raising alarms about potential manipulation.

4. Suspicious Partnership: The creators of this coin claimed that this project is partnered with the official creators of the Squid Game series. But there was no verification of this claim, and later it turned out that there was no legitimate partnership between the coin and the show.

The Rug Pull: How Millions Were Stolen

At first, the SQUID coin was very hyped and popular, which led its value to grow, but it didn’t last for a long time. Suddenly on November 1, 2021, just a few days after this coin reached its peak, the value of the coin drastically fell.

The creators of this coin perfectly and silently rug-pulled all the funds, leaving every investor with worthless tokens. They drained the liquidity from the coin’s liquidity pool, which caused its price to drop to nearly zero in just a few hours.

The investors who invested in this coin were not able to withdraw their investments because of the restrictions built into the coin’s code. The creators vanished, leaving no trace behind. It was estimated that the creators of this coin have scammed nearly $3 million from the rug pull. The damage after this scam was very high, as many people were left with nothing after the crash.

The Aftermath And Investigations

Once the rug pull was discovered, the fallout was swift and severe. The majority of the victims expressed their anger and surprise on social media at having been scammed. This shockwave spread through the crypto community, which caught the attention of mainstream news services and regulatory agencies.

Authorities quickly began investigating the scam. The Interpol and U.S. Securities and Exchange Commission (SEC) launched inquiries into the incident, with investigators looking into the identity of the creators and whether there was any criminal activity involved. However, despite efforts to trace, the anonymity of the cryptocurrency’s creators and the decentralized nature of the blockchain made it difficult for them to recover the stolen funds or bring the culprits to justice.

Lessons Learned from the Scam

The SQUID coin scam was wild, eventually making it one of the biggest rug pull cases of the crypto industry. It indeed caused severe damage to the people who invested in it. Some key lessons should be learned after this scam to safeguard yourself in this crypto market:

1. Research: Investigate thoroughly the cryptocurrency project. Researching about the team, whitepaper, and tokenomics can give a clear idea about the project. If something is unclear, be cautious.

2. Transparency: A legitimate project will be transparent about its goals and the people behind it. The lack of transparency should always raise a red flag.

3. Beware of High Promises: If the coin is promising faster or higher returns, the chances of it being a scam also increase. Investments in crypto carry risks and should be approached with careful consideration.

4. Report When Scam Occurs: As governments and financial regulators are increasingly paying attention to the cryptocurrency market, one needs to report to these higher authority if they fell victim to it. Scammers evolve their fraudulent techniques, but the regulators or professional recovery services like WhiteHatRecoverie can help to recover their lost funds and also spread awareness about the scams.

The Final Phase

The Squid Coin scam is a story about the dangers of the cryptocurrency market. The blend of excitement from a viral Netflix show and the promise of easy and quick money blinded many to the risks of investing in a project. While the creators of SQUID Coin may have walked away with millions, the victims left behind are left with financial losses.

If one has to survive in the crypto market, they have to be aware of the risks involved in this market and plan accordingly. Anyone can create a token and make fake promises for their own gain; thus, it’s important to be aware and take steps with proper planning and consideration while stepping into this market.

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