It’s over: Squid Game token fulfills $3.38m scam

Rick Steves

“Many will see this as proof that governments should try to regulate the space. However, no government can regulate borderless activity. Crypto is self-regulating, and participants should seek out those platforms that provide the best self-regulation.”

FinanceFeeds reported last week that SQUID, a digital token inspired by the Netflix TV series Squid Game, was finding buyers in the cryptocurrency space no matter the price.

We also cautioned investors that SQUID was likely to be unofficial and holders seemed to be unable to sell, swap, or stake the digital asset once they bought it.

These were two red flags for any investor considering buying SQUID, either for the sake of selling afterward for profit or to participate in the virtual game that ultimately did not take place.

As investors weren’t able to sell their holdings, SQUID kept growing in price and market capitalization to a point of reaching a $2,856 high before the scam came to an ending.

Squid’s developers have made off with an estimated $3.38m, according to technology website Gizmodo.

This ‘rug pull’ scam has caused a major upset with crypto investors. Although this is not the first time such a scam occurs, it is likely to be the one that caught most attention from investors and the media as the Netflix show garnered much popularity across the world.

“Squid Game the token, was true to the game presented in the Netflix show: Greed made victims of the participants, who all got financially slaughtered. Many will see this as proof that governments should try to regulate the space. However, no government can regulate borderless activity. Crypto is self-regulating, and participants should seek out those platforms that provide the best self-regulation”, said Edan Yago, lead contributor to the Bitcoin DeFi protocol Sovryn.

Martha Reyes, Head of Research at digital asset prime brokerage and exchange BEQUANT, also commented on the scam: “The Squid Game rug pull was very unfortunate. Scammers banked on the name and made out with millions, while investors and the media jumped on the bandwagon without doing their due diligence.

“Even by crypto standards, the returns seemed unbelievable, surging 7,500% in a matter of hours. As in any investment , if it sounds too good to be true, it probably is. Bequant is working with other companies in the space to identify and explain the similarities and differences between defi and traditional markets and outline the risks so that regulators can create an appropriate framework for the sector. Innovation should be allowed to thrive but bad actors need to be given the ‘red light’.”

Ruud Feltkamp, CEO of cloud-based automated crypto trading bot Cryptohopper, concluded: “It is characteristic of the current hype in which crypto is located that people no longer think and seize their opportunities with a lot of risks. Scammers take advantage of that. The logic is not entirely crazy. If a meme token could be worth billions, why not this? At the end of this cycle, which is expected in early January, most of the tokens will plummet in value, and only a small amount of projects will remain. These will then have to prove their worth. So keep paying attention to what you invest in and DYOR (Do Your Own Research).”

Read this next

Digital Assets

Revolut receives FCA’s go-ahead to launch crypto trading

British fintech and banking firm Revolut has received a regulatory go-ahead to launch its cryptocurrency services in the UK.

Digital Assets

GBTC share is trading at 36% below bitcoin spot price

Grayscale Bitcoin Trust share has widened its discount relative to the underlying cryptocurrency held in the fund, the highest margin ever since its debut in 2013. Digital Currency Group’s flagship GBTC shares traded at a discount of 35.8% to net asset value (NAV) today.

Digital Assets

Crypto lender Nexo investigated by 8 US state regulators

State securities regulators in New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont are investigating crypto lender Nexo for allegedly failing to register its Earn Interest Product.

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

<