Logo of Phnom Penh Post newspaper Phnom Penh Post - Squid Game crypto token collapses as developers make off with money

Squid Game crypto token collapses as developers make off with money

Content image - Phnom Penh Post
Squid Game Coin, taking the form of a play-to-earn coin, lured many users by giving them opportunities to participate in online games inspired by the popular Korean drama series. NETFLIX

Squid Game crypto token collapses as developers make off with money

Squid Game Coin, a digital token based on the popular Netflix original Korean drama series of the same name, collapsed to zero on November 1 after its creators took off with the approximately 2.5 billion won ($2.1 million) invested in the coin, according to news reports.

The crypto coin once surged to as high as 3.4 million won before its unexpected but eventual collapse on November 1, according to Coin Market Cap, a global cryptocurrency tracker. Ten minutes after it reached its peak, the cash invested in the tokens was suddenly liquidated by its creators. Their whereabouts are unknown, it added.

Labelling the case as an apparent “rug pull” scam, experts in South Korea said investors should have checked whether the crypto was legit for investment.

“Squid Game Coin, taking the form of a play-to-earn coin, lured many users by giving them opportunities to participate in online games inspired by the programme. Also it is a ‘meme coin’ that makes investors think they are ‘on trend’ if they purchase or sell the crypto,” said Hong Sung-il, a senior researcher at Korea Economic Research Institute.

“Investors should keep in mind that the crypto market is extremely volatile. Rather than just following the investment trend, they need to look into the documents released by the crypto project that gives technical information before making an investment,” Hong said.

“Meme coins” refer to cryptocurrencies or tokens that draw investors with internet memes, jokes and images shared online, rather than use cases or other conventional investment reasons.

Amid the intensifying meme coin craze, Squid Game Coin lured investors by piggybacking on the hype surrounding the TV drama without consent from Netflix, which holds the copyright for the series, for usage of the name or the games. Army Coin, a crypto named after the global fan club of K-pop boy band BTS, also infringes on the boy band’s copyright. BTS’ agency Hybe said earlier that it has nothing to do with the virtual coin and is considering legal action.

Market insiders have warned that money invested in Squid Game Coin appears to be non-refundable, and if crypto creators liquidate the entire coin and vanish, investors are liable to lose their money.

Launched on October 26, the crypto project announced that investors could play an online version of Squid Game in November and the final winner would receive an unspecified bonus that depended on the number of investors playing in the game.

The scam has now dashed hopes of the investors who had been looking forward to playing the games featured in the drama series, in which players risk their lives for a 45.6 billion won prize.

THE KOREA HERALD/ASIA NEWS NETWORK

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Kampot tourism quay ‘90% done’

    Construction on Kampot International Tourism Port – a 4ha quay in Teuk Chhou district about 6km west of Kampot town – has fallen off track, reaching 90 per cent completion, according to a senior Ministry of Tourism official last week. The project is now planned to be finished

  • Demining rat ‘hero’ Magawa dead at 8

    A landmine-hunting rat that was awarded a gold medal for heroism for clearing ordnance from the Cambodian countryside has died, his charity said on January 11. Magawa, a giant African pouched rat originally from Tanzania, helped clear mines from about 225,000sqm of land – the equivalent of 42