The cryptocurrency had hit a high of $2,861
A digital currency based off of the hugely popular Netflix show,
Squid Game, has scammed investors of millions after its creators cashed out.
The currency, called SQUID, is trading at 0.003$ but had surged to a price of $2,856 as recently as Monday (November 1), according to
CoinMarketCap.
The scam involved the crypto's creators cashing out of their coins in exchange for real money, causing the coin's value to crash. This is known as a 'rug pull.'
It is thought that investors have lost an estimated $2.1m.
Gizmodo reports that the crypto was an obvious scam as investors could purchase it but were not able to sell it.
The currency's website, hosted at SquidGame.cash, apparently also had a website littered with spelling mistakes and grammatical errors. It has now also disappeared.
https://twitter.com/charliebilello/status/1455269210641293324
Despite these 'red flags' a number of major news outlets had reported about the cryptocurrency, including the
BBC,
Business Insider and
CNBC.
The crypto was apparently a 'play-to-earn' currency, where people bought tokens to play in online games where they could earn more tokens.
One trader told the
BBC they had $7,500 (£5,442) tied up in the currency.
Part of the website read: "The more people join, the larger reward pool will be (sic).
"More importantly, we do not provide deadly consequences apparently!"
CoinMarketCap had warned potential investors that SQUID could be a scam, displaying a warning for people to "exercise extreme caution" if they decided to invest in the crypto.
Netflix told
CNN Business last week that it was not affiliated with the currency.
Related links:
Love music, TV and film? Glued to Netflix each evening? We want to hear from you. Click here to complete this survey for a chance to win a £100 Amazon voucher.
