Squid Game exhibits the dangers of hype-based cryptocurrencies

In the last week of October, there was a curious new cryptocurrency that burst onto the scene: Squid Game, or SQUID for short. Based on, but not officially affiliated with, the Netflix sensation, its whitepaper promised a reward pool that would grow as the number of participants grew and a series of games inspired by the show involving SQUID tokens.

The past year saw themed cryptocurrencies like Dogecoin and Shiba Inu achieve exponential, albeit temporary, growth driven primarily by market hype. Squid Game was perfectly placed to emulate their success by capturing the excitement around its namesake. And it did! Squid Game grew to $1, then $10, then $100, all while capturing more people giving into their feelings of FOMO (fear of missing out). It peaked at a valuation of nearly $3,000, tremendous growth in the space of a week.

Sound too good to be true? It was. Within 10 minutes, it all went awry. The creators took the $3.36 million invested into the coin until Nov. 1 and vanished. The coin was reduced to a valuation of less than a third of a cent in value; the holders were left gaping at the speed and scale of the “rug pull.”