It’s over: Squid Game token fulfills $3.38m scam
“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.
“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).”