Cryptocurrencies are a topic that is on everyone’s lips today. During the last few years a large number have emerged. Some emerged solely as parody, and others taking advantage of the pull of a specific topic, like the ‘Squid Game’.
According to its creators, SQUID is a cryptocurrency based on the hit Netflix series. During its commissioning, this had a growth of 230,000%, reaching 2,861.80 dollars. As with the series, this cryptocurrency caused a stir among the public related to this market. Nevertheless, in just a few seconds it plummeted and cost less than half a penny.
A crash in just a few seconds
At the time of writing this article, the cryptocurrency has a value of just $ 0.0032. According to The Guardian, the main cause of its collapse comes after temporary restriction of your Twitter account. And is that the social network warns that unusual activity has been detected in said account, leading to its closure.
Twitter is not the only social network referring to this currency in which it has disappeared. SQUID has disassociated itself from all of them, and even has closed its website.
The coin inspired by the series launched on October 20 and was part of a pay-to-play system for an online game based on the ‘Squid Game’. This game was coming out in November, and those who promoted it ensured that the winners would receive more of these coins.
Several facts point to a fraud
When it dramatically increased in value, many people noticed that the cryptocurrency could be a mere fraud. And is that a large number of its investors had trouble selling it. In addition, its White Paper, which is basically the description of the cryptocurrency made by its creators, contained several misspellings.
As Gizmodo recounts, it is possible that its creators made a total of 3.3 million dollars before their cryptocurrency collapsed. On CoinMarketCap, the site warns that “the coin can no longer be sold on Pancakeswap and that there is growing evidence that it is a scam“An anonymous investor said on this same website that he lost everything after investing $ 5,000 in it.
The danger of speculation
Without a doubt another of the great causes of this scandal was the repercussion and credibility given to this currency in the different international media. And it is that media such as the BBC, CNBC, or Bloomberg, among others, caused great excitement around this cryptocurrency, something that helped disproportionately its growth.
Investing in “meme cryptocurrencies” can pose a great risk according to experts in the field. Although it rises like foam, there may be cases like those of SQUID that put the situation of investors at risk. Eswar Prasad, an economist at Cornwell University tells the BBC that “those investors who get caught up in such frenzied speculation face the risk of substantial losses“.