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Squid Game Cryptocurrency Rises 90,000 % In Initial Days Of Trading, Raising Concerns

Prospective investors have been warned as the value of a new Squid Game cryptocurrency skyrockets in its first days of trading.

After skyrocketing in value in its initial days of trading, a new cryptocurrency inspired by the South Korean survival drama Squid Game has been warned.

The Squid coin was selling at $0.01235 on Tuesday. It was trading at $11.16 by midafternoon Friday, a 90,264 percent increase. It had a market value of almost $5 billion.

Squid is a “play-to-earn” cryptocurrency, which means that users can purchase tokens to use in online games, where they can earn more tokens. These can be traded for cash or other cryptocurrencies.

However, it has been chastised for not allowing investors to resell their tokens, with CoinMarketCap issuing a caution to anyone considering investing.

“We have received multiple reports that users are not able to sell this token in Pancakeswap,” the site says.

“Please do your own due diligence and exercise caution while trading! This project, while clearly inspired by the Netflix show of the same name, is unlikely to be affiliated with the official IP.”

It’s unclear why some users are unable to sell their tokens, although the coin’s white paper description does include anti-dumping technology that prevents consumers from selling their coins if specific requirements are not satisfied.

CoinMarketCap’s rival platform, CoinGecko, said Squid is “most likely a scam”.

“This token did not meet our listing criteria hence it will not be listed on CoinGecko. It’s most likely a scam,” CoinGecko co-founder Bobby Ong said.

Gizmodo’s Matt Novak also wrote that the crypto is “a total scam”.

“You can put real money into the cryptocurrency, but there’s no evidence you can ever take it out. That’s simply known as theft,” he wrote.

Pointing to the website – available at the domain SquidGame.cash – Mr Novak said the white paper “is filled with poor grammar, bizarre spelling errors, and claims that are impossible to verify”.

“Other red flags include the fact that the Telegram channel set up by whoever’s behind this scam isn’t open to comments from outsiders. And even the Twitter account makes it impossible for regular people to reply to posts,” he added.

“But the single largest red flag is the fact that people can put money in, but can’t take it out.”

 

Cornell University economist Eswar Prasad told the BBC that Squid “joins a long and growing list of digital coins and tokens that piggyback on random memes or cultural phenomena”.

“Remarkably, many such coins rapidly catch investors’ fancy, leading to wildly inflated valuations. Naive retail investors who get caught up in such speculative frenzies face the risk of substantial losses,” he added.