A cryptocurrency named after the hugely popular Netflix drama Squid Game crashed to near zero on Tuesday (Nov. 2) after a dizzying rally last week drove it to nearly $ 2,800 ($ 3,778).
The market value of the so-called squid token rose to $ 2.4 billion in the past 24 hours at the peak of trading on Monday, with a trading volume of $ 14 million in the last 24 hours, according to CoinMarketCap.
The reason for the squid break-in was unclear. However, several reports, including one from Gizmodo, stated that owners of the coin were not allowed to sell the digital coin. Reuters was unable to independently verify the information.
Specialized crypto news agency Coindesk reported that a digital address dumped squid tokens and paid out tokens worth millions of dollars in what is known as a “rug pull” – a situation in which crypto developers abandon a project and use the money of the Investors run away.
Squid’s website appeared offline on Tuesday while her Twitter account was “temporarily restricted” due to unusual activity.
According to CoinMarketCap, Squid has only been trading for a week.
“Like many Internet scams, cryptocurrency scams are closely aligned with popular trends, and after the squid game hype, it’s no different,” said Jake Moore, cybersecurity specialist at cybersecurity firm ESET.
Cryptocurrencies based on memes or linked to internet culture have seen rapid booms and bust this year, reflecting the rising popularity of mainstream cryptocurrencies like Bitcoin.
Last week, for example, cryptocurrency Shiba Inu – a meme-inspired cryptocurrency and a spin-off from Dogecoin – entered the top 10 largest digital tokens by market capitalization. However, it has little practical use.
A worldwide sensation and number 1 on Netflix, the South Korean series Squid Game features hundreds of cash-strapped gamers playing hyper-violent games.
Squid is traded on the PancakeSwap and DODO exchanges. Pancakeswap did not respond to a request for comment.
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