By: Harrison Young-Glatz
Recently, a cryptocurrency coin called “Squid Coin ” took a one-of-a-kind journey from 40$ a coin to 2,850$ a coin in 4 hours, then 5 minutes after its peak, plummeted to 0.0008$. But how did this happen?
On October 20th, 2021, a crypto coin SQUID, which was pitched as a pay-to-earn crypto coin for an upcoming Squid Game online game (inspired by Squid Game, a Netflix show released September 17th, 2021), Climbed 310,000% in its first 10 days from investors and crypto traders going all in.
5 minutes after SQUID’s peak of $2,856.64 USD, it sank all the way down to $0.0007926 USD. As Charlie Bilello, CEO of Capital Advisors, and an avid investor, pointed out in a tweet published on November 1st, 2021:
“Squid Game Crypto Coin Today…
Why did nobody sell earlier? There were supposedly many red flags to deter people from buying into the coin in the first place, like the website for SQUID being filled with typos and spelling errors. CoinMarketCap, the world’s most referenced price tracking site for cryptocurrencies warned before the scandal that SQUID was a scam, and not to invest in it; yet the biggest red flag was the fact that you could never sell the token. You could only ever buy in, but never sell.
People invested regardless of all of these warning signs in hopes of earning profit from the game they were investing in, but because the founder and creator of SQUID coin set it up so that only they could sell, they banked out an estimated $2,100,000 USD on the backs of crypto investors.