The Squid Game Cryptocurrency Hype and Subsequent Crash

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3 years ago

By now, almost everyone on the planet has either seen the TV show Squid Game, or they’ve at least heard of it. But what many do not know is that some individuals decided to take advantage of this hype and create a Squid Game cryptocurrency.

As sad as it is, the Squid Game cryptocurrency is a prime example of why you should stay far away from certain altcoin projects. Although this project increased to almost $3,000 a coin, it did inevitably crash, and left those who invested with nothing as the developers disappeared.

To learn more about why this happened, and how you can avoid future cryptocurrency scams, keep reading, as losing your life savings in a scam altcoin is the last thing that you want to have happen in your life.

What is Squid Game?

Squid game is a Korean action/drama TV show about a bunch of people (456 to be exact) that find themselves in massive debt and unable to get out. Most of them have gambling problems, but others have issues like drug addiction or choosing the wrong path in life. Of course, there are some characters who are designed to be purposefully redeeming, such as Ali, a Pakistan immigrant who hasn’t been paid by his corrupt employer in 6 months, or Kang Sae-Byeok who needs money to rescue her parents from North Korea after the first brokers she hired stole her money.

Anyway, all of these characters are tossed together in a battle to the death to see who will get the prize money, 45.6B Won($38 million USD). There are a set of games that the winner must pass through in order to win the money. But beyond the games, the winner must also survive the hostile environment of living with the other players. This often leads to dire and sad consequences.

What is Squid Game Cryptocurrency?

The show quickly took the world by storm, as people devoured episode after episode of the series (which was often left as a cliffhanger to entice viewers). And thus, a group of people decided to take advantage of the hype and start a Squid Game cryptocurrency.

Although this may sound weird, this is just how most cryptocurrencies start out—they are just people with an idea. This is why it is so critical that you research any altcoin that you invest in before you buy it, because you really are investing in the people behind the project. This is what makes Bitcoin so unique, as there is no creator taking credit for the project. But that’s another story.

Squid Game cryptocurrency, called SQUID, had nothing behind it. If you go to the website and click on the whitepaper, you will find the whitepaper for Binance Smart Chain, rather than a token by the name SQUID. The creators of the coin also do not exist in any online realm. This is all bad news for investors, as it makes it easy for the creators to dip in the future.

The website for SQUID shows that the creators were really rolling with the idea of the show. They even offered a drawing you could enter to win the same amount of SQUID as the grand prize of Won in the show. But if you look more closely, it is clear that this token is a joke, as it even says that holders can “opt out of the game with a 50% vote” which is a quote from the show but means absolutely nothing in the cryptocurrency world. Either way, SQUID was never a real cryptocurrency project.

The SQUID Scam

Thus, it should come as no surprise when, on Monday, November 1st, the value of the SQUID coin suddenly crashed to zero as the people (whom no one knows) cashed out all of the invested funds and left with an approximate $2.50million USD. This clearly indicates that there was no real project behind the coin. Before this crash happened, the coin hit a high of $2,860 on CoinMarketCap. This has left anyone who has invested in SQUID with absolutely nothing. One man claims he lost his entire $28,000 in life savings in the coin.

How to Avoid Altcoin Scams

As sad as this story is, it is all too common in the altcoin world, which is why you MUST research any project you intend to invest in. Below are some tips of other things you should watch for in order to help you to avoid being scammed like those who invested in SQUID.

1. Research Any Coin Thoroughly

This doesn’t mean you do one Google search and look at a single website. You should look at multiple news stories, as well as the project website. Take a look at the whitepaper, see if it is legit. You should also look up the creators of the coin on social media. If a coin is lacking all of these things, run!

2. Watch for Natural Development

Rome wasn’t built in a day, and any viable altcoin won’t be either. If the coin is going up in a straight line, only up, with no natural plateaus or downward movement, this is a sign that something more sinister is happening behind the scenes.

3. Abnormal Appreciation

There are many cryptocurrencies, such as Bitcoin, and Ethereum, which are up over 1000%. But remember, this happened after years and years of it being available. Although people want to believe that cryptocurrencies are a get-rich-quick scheme, they are not. Therefore you should watch the activity of any coin you are interested in. If it is going up a thousand percent in a single day, this is a sign that something is off.

Overall, the SQUID catastrophe could have been avoided had the investors researched the coin a bit before they began buying—after all, there really was nothing behind the coin. As sad as it is for the people that have lost everything, this is a common occurrence in the cryptocurrency world, and exactly what investors should be wary of before they begin investing their money in any project.

This article was brought to you by the Bitcoin Dice Game on MintDice. Originally posted for the MintDice Crypto News Blog.

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+ 5
Avatar for MintDice
3 years ago

Comments

lol didn't even know some people made a scam coin. Ah money... There will always be people who don't know how to check before they invest...

$ 0.00
2 years ago

bitcoin and shiba. But is there a website where

$ 0.00
3 years ago

left those who invested with nothing as the developers disappeared.

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3 years ago

They really are taking advantage of the trend. This is just sad to be honest.

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3 years ago

Thanks for sharing

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3 years ago

Hi, I am a newbie in the cryptos.. All I get into is the xrp, bitcoin and shiba. But is there a website where you can find the list of reliable coins to hold or trade?

$ 0.01
3 years ago

Just buy Bitcoin and Ethereum and don't worry about the rest. Wait 5 years after buying.

$ 0.00
3 years ago

Creo que el saber que subió un porcentaje y que no se podía retirar creo que ya manera de dudar en invertir pero aveces la codicia nos ciega

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3 years ago
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3 years ago

I felt bad for those people who lost their saving, This is exactly why one should never invest into any altcoin without conducting a good research on it.

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3 years ago

Greed is a dangerous thing. People see the coin flying up in value and ignore the warnings. A shame they got scammed but some people never learn.

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3 years ago

Hey MintDice, due to the problem of my comments getting falsely flagged/attacked, I am moving to Noise.cash instead. Just wondering if I can find you over there? I did find what looked like your account and followed you, but I didnt see any activity for a long time. Do you still use that account? Even if it was just to redirect us to your account here, it would be helpful. Hopefully, I can see you over there too! :)

Thanks, Lilly

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3 years ago

I cannot believe that people put money into such obvious scams. I guess the allure of that 0.00001% chance of getting rich in a day is just too great for naive people!

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3 years ago

This is related to my last post too sir,I invested in a coin without knowing anything about crypto. I was left desolated

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3 years ago

NEVER invest in a coin you are not knowledgeable about! Especially when there are so many reputable coins out there with real projects, stay away from the scams/unknown coins. This is a great way to lose your money.

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3 years ago

Crpyto is such a world of good and bad people nowadays, lots of developers using the hype to create coins as an attraction for the investors. Your right, DYOR is the best thing to do in order to know if the coin is legit or is there any possibility that the dead will withdraw all the funds then run away.

$ 0.01
3 years ago

It is quite sad how some people invest their money into projects they don't research about. I for one don't have such amount of money to spare but I try to research everything before I opt for it. Because the little I have is what keeps me up.

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3 years ago

That is good, if only other people invested like you, they would not have lost all their money.

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3 years ago

Good article 🤝🤝🤝🤝🤜🤜🤜🤛🤛

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3 years ago