A new crypto coin inspired by the popular South Korean TV show ‘Squid Game’ made rapid strides in the markets. Unfortunately, in less than two weeks after its launch, the coin turned out to be a major scam.
Rug pull: Creators drain liquidity from coin
As per the reports, the anonymous creators of Squid Game coin sold their entire holdings rapidly on Sunday, bringing down the coin’s value to $0, a phenomenon described as “Rug Pull” in financial parlance.
Through the coin’s tenure (approximately 11 days), the investors saw a peak of $2,861 and an appreciation of 310,000 percent.
There were warning signs
Leading crypto website, CoinMarketCap said it had warned the investors about the suspicious behaviours of Squid Game coin. Furthermore, the investors were asked to do their due diligence and exercise caution while trading with this coin.
In the past two weeks, some analysts and crypto sites also flagged concerns about the Squid tokens.
You can buy but not sell the coins
The most significant loophole in the token was the absence of an option to sell the coin. While investors could buy the coin, there were no avenues to sell them. Given this, no matter how much the token gained, the investors had no choice but to opt for a cash-out.
Some of the other evident loopholes also included: