Squid Game creators pull rug on cryptocurrency and pocket $2.1million from investors

THE creators of a Squid Game cryptocurrency appear to have pulled the rug on the project, leaving investors an estimated $2.1million out of pocket.

The untested coins soared in value last week, rocketing by 43,000% in two days.

The cryptocurrency then peaked at a price of $2,857 today before plummeting to around $0 – down by 99.99%, according to the website CoinMarketCap.

This is commonly known as a "rug pull", which is when creators of a cryptocurrency quickly cash out their coins for real money.

First reported by Gizmodo, the Squid Game website has also disappeared this morning.

It noted that the website was littered with spelling and grammar mistakes, among other red flags.

Plus, Twitter currently warns that an account with the name SquidGameBSC is "temporarily restricted" due to "unusual activity".

Known as SQUID, it was minted as a cryptocurrency that could be used to play an online game based on the Korean streaming series.

However, as of last week, those who bought the coins were reportedly unable to cash out.

CoinMarketCap warned that it had received "multiple reports" that holders of the Squid token couldn't sell them on Pancakeswap, a decentralised finance exchange.

It added that investors should "exercise caution when trading".

Not being able to convert a cryptocurrency into a traditional currency is just one of the major risks of crypto.

Investors risk losing all of their cash investing in crypto and newer coins are even riskier than more established ones like Bitcoin and Ethereum.

The value can go down as well as up in the blink of an eye, so you should never invest in a financial product you don't understand or money that you can't afford to lose.

Due to the lack of regulation for crypto firms, you won't have protection when things go wrong.

Sarah Coles, senior personal finance analyst of Hargreaves Lansdown, told The Sun: "The Squid Game crypto scam followed a pattern we have seen before, where fraudsters pick a current fad and attach it to a bogus cryptocurrency in order to attract the attention of currency speculators.

"While it’s always worth doing your research on any coin you’re considering buying, and checking there’s a mechanism for selling, you’re essentially operating in the Wild West, so there is always the risk of falling foul of a scammer.

"It’s never a good idea to buy cryptocurrency with money you can’t afford to lose.

"But it’s worth knowing that the risk doesn’t just come from the enormous volatility of these coins, but also from the fact that some of them will prove to be scams."

It's not known who was behind the Squid Game cryptocurrency.

There have been warnings over a Squid Game app that installs malware on your phone.

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