BBC news Korea

Squid Game crypto token collapses in apparent scam

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.

Squid Game cryptocurrency rockets in value

Chinese viewers slam 'copycat' Squid Game show

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.

Squid was billed as a token that could be used for a new online game inspired by the Netflix series - which tells the story of a group of people forced to play deadly children's games for money. The game was due to go live this month.

However, cryptocurrency experts had warned of several tell-tale signs that it was likely to be a scam.

Most telling was that people who bought Squid tokens were unable to sell them.

Critics also highlighted that its website contained many spelling mistakes and grammatical errors. The website is no longer online and social media accounts promoting the tokens have also vanished.

"It is one of many schemes by which naïve retail investors are drawn in and exploited by malevolent crypto promoters," Cornell University economist Eswar Prasad told the BBC.

Professor Prasad said buyers need to be aware when buying cryptocurrencies as there is almost no regulatory oversight.

"In fact, open pump and dump schemes are rampant in the crypto world, with investors often jumping in with eyes wide open, perhaps hoping that they can ride the wave and dump their holdings for a quick profit before prices collapse," he said.

Squid was available for sale on decentralised crypto exchanges including PancakeSwap and DODO, which allows for buyers to connect directly to sellers, without a central authority.

"Nowadays new coins can be listed on decentralised exchanges on the first day they are created, without any regulation or due diligence," said Jinnan Ouyang from Singapore-based crypto company Openmining.

"So you could be buying coins from anyone with any agenda."

Terjemahan

TOKEN CRYPTO SQUID GAME RUNTUH DALAM PENIPUAN NYATA

Token digital yang terinspirasi oleh serial Netflix Korea Selatan Squid Game telah kehilangan hampir semua nilainya karena dinyatakan sebagai.

Cumi-cumi, yang memasarkan dirinya sebagai "cryptocurrency play-to-earn", telah melihat harganya melambung dalam beberapa hari terakhir - melonjak persen.

Namun, seperti yang dilaporkan BBC, itu dikritik karena mengizinkan tidak orang untuk menjual kembali token mereka.

Penipuan semacam ini biasa disebut "tarikan karpet" oleh investor kripto.

Ini terjadi ketika promotor token digital menarik pembeli, menghentikan aktivitas perdagangan dan menghasilkan uang dari penjualan.

Pengembang Cumi telah menghasilkan sekitar $3,38 juta (£ 2,48 juta), menurut situs teknologi Gizmodo.

Cryptocurrency "Play-to-earn" adalah tempat orang membeli token untuk digunakan dalam game online dan dapat memperoleh lebih banyak token yang nantinya dapat ditukar dengan cryptocurrency lain atau mata uang nasional.

Nilai roket cryptocurrency Squid Game

Pemirsa Cina mengecam acara Squid Game 'peniru'

Selasa lalu, Squid belajar hanya 1 sen. Dalam waktu kurang dari seminggu, harganya melonjak menjadi lebih dari $2.856.

Nilainya kini anjlok 99,99%, kata situs data cryptocurrency CoinMarketCap.

Cumi ditagih sebagai token yang dapat digunakan untuk game online baru yang terinspirasi oleh seri Netflix - yang menceritakan kisah sekelompok orang yang membuat game mematikan anak-anak demi uang. Permainan itu akan ditayangkan bulan ini.

Namun, para ahli cryptocurrency telah memiliki beberapa tanda bahwa kemungkinan itu adalah penipuan.

Yang paling jelas adalah bahwa orang yang membeli token Squid tidak dapat menjualnya.

Kritik juga mengunjungi bahwa situs webnya mengandung kesalahan kesalahan dan kesalahan tata bahasa. Situs web tidak lagi online dan akun media sosial yang mempromosikan token juga menghilang.

“Ini adalah salah satu dari banyak skema di mana investor ritel yang naif ditarik dan dieksploitasi oleh promotor crypto yang jahat,” kata ekonom Cornell University Eswar Prasad kepada BBC.

Profesor Prasad m

Faktanya, skema open pump dan dump merajalela di dunia crypto, dengan investor sering melompat dengan mata terbuka lebar, mungkin berharap mereka dapat menaiki gelombang dan membuang kepemilikan mereka untuk keuntungan cepat sebelum harga runtuh, "katanya.

Squid tersedia untuk dijual di bursa kripto terdesentralisasi termasuk PancakeSwap dan DODO, yang memungkinkan pembeli untuk terhubung langsung ke penjual, tanpa otoritas pusat.

“Saat ini koin baru dapat didaftarkan di bursa terdesentralisasi pada hari pertama dibuat, tanpa regulasi atau uji tuntas apa pun,” kata Jinnan Ouyang dari perusahaan kripto Openmining yang berbasis di Singapura.

"Jadi Anda bisa membeli koin dari siapa pun dengan agenda apa pun."