A crypto currency inspired by the popular South Korean Netflix series Squid Game has turned out to be a rug pull, making off with around $3.4m.
Squid was billed as a token that could be used for a new online game inspired by the Netflix series. It was sold as a way to play an upcoming online game to be launched this month. The value of Squid would increase as the game gained traction, the creator promised.
“Squid is an open-source cryptocurrency that will be integrated into the upcoming game as a method to obtain virtual goods in the game.”
CNET quoted the company as saying: “Through game token purchases, users will be rewarded with in-game rewards like in-game currency for playing the game, or a digital asset for buying items within the game.
“They will also be able to exchange game tokens for various virtual currencies or even traditional currencies.”
Unlike other currencies, their website didn’t tell people how to convert their tokens for cash. Users who had invested $6,600 or more said they had been made to send money via MoneyGram, Western Union, BitcoinPay and other “Western Union-type” transfer systems.
Squid coin went from one cent to as high as around $2,800, before plunging to $0 after the scam on Monday. Its website is now down, along with all social media presence.
The developers behind the scheme had made off with around $3.4m after a web-based exchange reportedly tried to pass off the tokens as “proof of purchase” for the online game, Bleeping Computer reports.
A whole host of “initial coin offerings” have been organized that raised huge sums in a matter of hours. While most are legitimate, with decentralized, anonymous teams, it’s difficult to know which ones are scams.
The disappearance of Squid came just a day after another popular crypto, Solar, said it had closed its trading platform following a “disappointing” and “sophisticated” attack by hackers.
Solar shares fell 12 percent on Monday after the exchange said it had been hit by hackers with “near complete” control of its database, stealing $9.3m worth of the virtual currency and driving the exchange to halt trading in all cryptocurrencies.