Squid Game Token Scam Shocked the Cryptosystem

“Do your research, before investing your time and money” is a legitimate quote that all the investors will now onwards worship. A meme coin based on the overhyped Netflix show Squid Game has swept crypto enthusiasts off their feet. The scam related to Squid Game Token has highlighted the immediacy of the need to put cryptocurrency regulations to avoid further such incidents.

The Squid Game token saw an enormous rate of bullish run as soon as it was introduced. However, a few weeks ago its market crashed at a rate greater than the rate at which India’s fuel price rises. Millions of invested funds disappear within hours.

According to a report released by Quartz India, an investor who goes by name of Gamer Genie on Twitter told them, “I bought the Squid Game Token and it was the worst decision of my life…lost a ton of money.” the investor single-handedly suffered a loss of $11,500.

The CEO and founder of CrossTower – Kapil Rathi commented, “It is very important for investors to research new token projects before investing.” he later added to his statement, “In one sense, we have innovation that we do not want to stifle, but, on the other hand, we also have negative use cases that could emerge if the country did not have a protection policy.”

developers used the frenzy created by the popular Netflix Korean show Squid Games to scam crypto enthusiasts. Image Source: CoinMarketCap

How did Investors fall into the Scam Trap of Squid Game Token?

Just like the cryptocurrency market received an ample amount of hype around the pandemic period, its investor participation amplified last year. Similarly, Ott platforms and Netflix binging became a customary task. The Korean Drama Netflix show Squid Game was released on the Indian platform on 17th September this year.

Within a few weeks, it gained a massive fan following.  It was and still is among the Top 10 trending web series. Seeking this particular opportunity, the Squid Game Token was launched. This particular cryptocurrency gave a sense of “play to earn”. These tokens were bought these tokens to play online games and earned more tokens after winning. These tokens were promised to be optimized in such a manner that they could later be exchanged for any other cryptocurrencies. 

On 12th October, the token’s website was registered which is currently dysfunctional. The whitepaper of the Squid game token was released in the last week of October which gave a sense of doubt and skepticism. The White paper had innumerable grammatical and spelling errors – most somehow act upon their frenzy despite numerous red flags wave on their faces.

The crypto coin was available for purchase at a rate of around $0.01 and rallied up within weeks to $2,861. The profit margin was “too good to be true” and finally, investors felt they should sell them off. However, the big bash hit them once they realized the crypto coins could only be purchased, not sold on Pancakeswap.

According to reports and data from CoinMarketCap, on November 1, within a matter of 15 minutes, the price of the Squid Game token fell to $0.3682. CoinMarketCap reports that this project is “rugged”. Later it adds, “This project, while inspired by the Netflix show of the same name, is NOT affiliated with the official IP.”

The Squid Game token scam triggered the immediacy for the need for regulations. Image Source: Cointribune

The scammers managed to trick investors and fled with $3 million of invested funds.

This entire scam left the globally popular cryptocurrency exchange platform Binance on the alert. Considering the token’s original draft was developed on Binance’s decentralized platform. 

Binance CEO and co-founder Changpeng Zhao had stated in their blog post, “We’re entering a period of peak speculation – people are looking for next get-rich-quick-scheme 100x opportunity. The truth is, those 100x don’t come along often. And when they do, they usually come with a ton of risk…”

I partly agree and disagree with the statement simultaneously. Here I quote Warren Buffet (if you are reading a piece of cryptocurrency and investments, I am assuming you are familiar with the name) – “Successful investments take time, patience, and discipline. No matter how great the talent or effort, some things just take time: you can’t produce a baby in one month by getting nine women pregnant.”

There are no “get-rich-quick” schemes, some may have a better sense of purchase-sell theories of execution, some may have a bit of good luck. However, investment always takes time to recur gains, sooner or later. The Squid Game tokens must have been a lesson to learn.

Also Read: Netflix To Premier Death Of The Canadian Crypto King In the Year 2022

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