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Squid Game crypto token collapses in apparent scam
Inspired by the hugely popular Netflix series Squid Game, the tokens had rocketed in value.
Culture & Entertainment
A digital token inspired by the popular South Korean Netflix series Squid Game has lost almost all of its value as it was revealed to be an apparent scam.
Squid, which marketed itself as a "play-to-earn cryptocurrency", had seen its price soar in recent days - surging by thousands of per cent.
However, as the BBC reported, it was criticised for not allowing people to resell their tokens.
This kind of scam is commonly called a "rug pull" by crypto investors.
This happens when the promoter of a digital token draws in buyers, stops trading activity and makes off with the money raised from sales.
Squid's developers have made off with an estimated $3.38m (£2.48m), according to technology website Gizmodo.
"Play-to-earn" cryptocurrency is where people buy tokens to use in online games and can earn more tokens which can later be exchanged for other cryptocurrencies or national currencies.
Last Tuesday, Squid was trading at just 1 cent. In less than a week its price had jumped to over $2,856.
Its value has now plummeted by 99.99%, said cryptocurrency data website CoinMarketCap.