The cryptocurrency based on(but not affiliated with) Netflix’s mega-hit TV show “Squid Game,” called $SQUID, crashed on Monday by a whopping 99.9999%.
The coin experienced a dramatic drop in value first thing in the morning this week, reaching less than a fraction of one penny shortly before noon.
The crash follows the much-hyped coin’s meteoric rise last week after it debuted — but analysts had warned investors from the beginning that the coin was likely a rug pull: a get-rich-quick scheme for developers who planned to walk away after the coin peaked, leaving crypto enthusiasts and Squid Game fans holding the bag.
CoinDesk reported that the developers had officially left the project after walking away with $2 million in assets. The developers wrote a statement on their Telegram account that they were “depressed” and “stressed” by “hackers” who they claim were affecting the price:
“Someone is trying to hack our project these days. Not only the Twitter account @GoGoSquidGame but also our smart contract. We are trying to protect it but the price is still abnormal. Squid Game Dev does not want to continue running the project as we are depressed from the scammers and is overwhelmed with stress (sic). We have to remove all the restrictions and the transaction rules of Squid Game. Squid Game will enter a new stage of community autonomy.”
$SQUID was a rug pull in the making
The coin started its presale Oct. 20 and apparently “sold out in one second,” joining a list of other parody cryptocurrencies that have witnessed big run-ups for no particular reason, other than good publicity. On October 26 it was worth a modest 1 cent, but by October 30 it had exploded in value, reaching $4.39. By the end of last week, the coin had reached a market capitalization of $174 million.
Squid is what is known as a “play-to-earn” cryptocurrency, where people buy tokens to play in online games where they can earn more tokens. These can then be exchanged for other cryptocurrencies, or fiat money.
The online Squid Game tournament, which was supposed to launch this month, mimics the six rounds of games featured in its namesake TV show. But unlike its Netflix counterpart, the company said “we do not provide deadly consequences apparently!”
It seems that coin’s tournament will not come to fruition, however, since the developers have abandoned the project. The fate of $SQUID is more than a bit ironic, considering the premise of the Netflix show, which centers on individuals so deeply in debt their only option is to compete in deadly children’s games in the hopes that they will win a large sum of money.