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Squid Game scam: Everything you should know

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As per the reports, the anonymous creators of Squid Game coin sold their entire holdings rapidly on Sunday, bringing down the coin’s value to $0, a phenomenon described as “Rug Pull” in financial parlance.

Squid Game scam: Everything you should know
A new crypto coin inspired by the popular South Korean TV show ‘Squid Game’ made rapid strides in the markets. Unfortunately, in less than two weeks after its launch, the coin turned out to be a major scam.
Rug pull: Creators drain liquidity from coin
As per the reports, the anonymous creators of Squid Game coin sold their entire holdings rapidly on Sunday, bringing down the coin’s value to $0, a phenomenon described as “Rug Pull” in financial parlance.
Through the coin’s tenure (approximately 11 days), the investors saw a peak of $2,861 and an appreciation of 310,000 percent.
There were warning signs
Leading crypto website, CoinMarketCap said it had warned the investors about the suspicious behaviours of Squid Game coin. Furthermore, the investors were asked to do their due diligence and exercise caution while trading with this coin.
In the past two weeks, some analysts and crypto sites also flagged concerns about the Squid tokens.
You can buy but not sell the coins
The most significant loophole in the token was the absence of an option to sell the coin. While investors could buy the coin, there were no avenues to sell them. Given this, no matter how much the token gained, the investors had no choice but to opt for a cash-out.
Some of the other evident loopholes also included:
  • The website, SquidGame.cash, looked unprofessional with many typos and grammatical mistakes.
  • Its Twitter and Telegram accounts did not allow anyone to comment except for the account’s creators.
  • Notwithstanding these apparent signs of an impending scam, mainstream media provided high-voltage coverage to the coin and its phenomenal rise.
    Genesis
    Squid Game cryptocurrency began as a pay-to-play token on October 20. The holders of the coin were promised that they can participate in an online game inspired by the Netflix show, ‘Squid Game’, which will be available on the network from November.
    The online Squid Game allowed two groups of indebted people to play the game and win money drawing on the popular TV show. Investors believed they will win the Squid token as people win money on the Squid Game TV show.
    Fly by night operations
    Before investors and experts could expose the scam, the creators drained all the liquidity from the coin and shut the shop. Nevertheless, some investors flagged the creators of the coin had seemingly rug-pulled on social media. It was only after this news made the rounds that it came to light that the website SquidGame.cash was unavailable. The concern grew sombre when all social media accounts of the business were unavailable too.
    Not the first time
    It’s not for the first time that the popularity of a TV show has been used to create crypto coins. Earlier this year, a crypto coin Mando, named after the famous Disney show Mandalorian, was launched. But Disney was quick to warn the investors that it had nothing to do with the coin.
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