Squid Token, which was released last week at a penny per unit, was traded at $38 per unit yesterday, accompanied by great attention from the mainstream media due to the series it inspired. Then the roller coaster Squid went up in value from $628.33 to $2856.65 within 10 minutes, but traded at $0.0007 after 5 dramatic minutes.
There were more than 40,000 left with Squid, whose value was zeroed after its collapse. According to the tech website Gizmodo, Squid Token developers made an estimated $3.38 million in scams.
One of the swindlers, John Lee, who lives in the capital of the Philippines, said that he “instinctively thought that the cryptocurrency was issued with the authority given by Netflix and invested $1,000 in Squid.” Stating that he was surprised when he learned that he could not immediately dispose of the cryptocurrency he bought, Lee said that he can now sell Squid, but that he will receive nothing in return.
The identity of its creators is unknown
Noting that “the identity of the creators of Squid Token and the reasons behind its collapse are unknown,” The New York Times reported that the cryptocurrency‘s website has been taken offline, an email sent to its developers has bounced, social media channels have been shut down, the Twitter account does not accept direct messages or replies. conveyed. Neither Netflix nor the cryptocurrency exchange Pancakeswap, which has previously announced that it has nothing to do with the cryptocurrency that bears the name of the series, answered the newspaper’s questions on the subject.
The ‘rug pull’ scam
After all, the cryptocurrency world is debating whether Squid Token is a ‘rug pull’ scam. The term ‘rug pull’, meaning pulling the carpet, is used for scam cases where ‘cryptocurrency developers lure buyers and increase the value of the coin, then stop trading and run away with their money, leaving the coin illiquid’.
Molly Jane Zuckerman, content manager for cryptocurrency monitoring site CoinMarketCap, said “It was a rug pull. I don’t see developers going online and saying ‘wait with us, we’re so sorry, we’ll fix this.’ “
