Crypto Coin on High Craters Squid Game After Dizzying Rally

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Performers wear costumes inspired by the Netflix show “Squid Game” during a Halloween event at an amusement park in Beijing, China on October 30, 2021. REUTERS / Thomas Peter

Nov. 2 (Reuters) – A cryptocurrency named after the hugely popular Netflix drama “Squid Game” crashed to near zero value on Tuesday after a dizzying rally pushed it to nearly $ 2,800 last week.

The market value of the squid token jumped to $ 2.4 billion at the height of trading on Monday with a trading volume of $ 14 million in the past 24 hours, according to CoinMarketCap.

The reason for the squid’s collapse was unclear. However, several reports, including one from Gizmodo, said the coin holders were not allowed to sell the digital coin. Reuters could not independently verify the information.

Coindesk, a crypto media outlet, reported that a digital address threw squid tokens and cashed in millions of dollars in tokens in what it called a “carpet pull” – a situation in which the developers crypto ditch a project and run away with investor money.

Squid’s website appeared to be offline on Tuesday, while its Twitter account was “temporarily restricted” due to unusual activity.

Squid has only been trading for a week, according to CoinMarketCap.

“Like many scams on the internet, cryptocurrency scams align closely with popular trends and after the hype of Squid Game, it’s no different,” said Jake Moore, cybersecurity specialist at from the cybersecurity company ESET.

Cryptocurrencies based on memes or linked to internet culture have seen rapid booms and recessions this year, echoing the growing popularity of traditional cryptocurrencies such as bitcoin.

Last week, for example, the cryptocurrency shiba inu – a cryptocurrency inspired by memes and a dogecoin spinoff – established itself in the top 10 largest digital tokens by market cap. However, it has virtually no practical use. Read more

The South Korean series Squid Game, which has become a worldwide sensation and the # 1 show on Netflix (NFLX.O), shows hundreds of cash-strapped players competing in hyperviolent games. Read more

Squid is traded on the PancakeSwap and DODO exchanges.

Pancakeswap did not respond to a request for comment.

Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru and Tom Wilson in London; Editing Bernard Orr and Shinjini Ganguli

Our Standards: Thomson Reuters Trust Principles.

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