A cryptocurrency based on the popular Netflix (NASDAQ:NFLX) series Squid Game has collapsed and its value plummeted to $0 after it was revealed to be an investor scam.
The digital token, called “Squid,” was marketed to investors as a “play-to-earn cryptocurrency” and had seen its price soar in recent days, surging by thousands of per cent.
However, Squid was criticized for not allowing people to resell their digital tokens. This kind of scam is commonly called a “rug pull” by cryptocurrency investors.
Essentially the promoter of a digital token draws in buyers, stops trading activity and makes off with the money raised from sales. Squid's developers took an estimated $3.38 million U.S., according to technology website Gizmodo.
Last week, Squid was trading at just one cent U.S. In less than a week its price had jumped to over $2,856 U.S. Its value has now plummeted to zero, according to cryptocurrency data website CoinMarketCap.
Squid was billed as a token that could be used for a new online game inspired by the Netflix series, which tells the story of a group of people forced to play deadly children's games for money. The game was due to go live this month.
However, the digital token turned out to be nothing more than a sophisticated scam.
Squid had been available for sale on decentralized cryptocurrency exchanges such as PancakeSwap and DODO, which allow buyers to connect directly to sellers, without a central authority acting as an intermediary.
