In the Netflix hit series “Squid Game,” characters gamble with their lives. Though in real life lives aren’t on the line, for many people who piled their money into Squid, a cryptocurrency named after the show, the financial loss has still been significant. On early Monday morning, the value of a Squid coin collapsed from a high of just over $2,860 to effectively zero as cryptocurrency traders watched the token’s unknown creators clean out some $3.3 million in funds, according to digital records. The maneuver, known as a “rug pull” in cryptocurrency circles, occurs when a token’s creators abandon the project by exchanging many virtual coins for real-world cash. They quickly drain liquidity from the product, effectively driving the coin’s value to zero and leaving other investors holding the bag in an apparent scam. Launched late last month, the new cryptocurrency skyrocketed in value as investors rushed to buy tokens hyped by promotions on multiple social media platforms.
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