From the skyrocketing “out of the circle” to the runaway, Squid Coins only took one week; from nearly $3,000 to zero suddenly, Squid Coins only took 5 minutes. After the popular Korean drama “Squid Game”, a cryptocurrency called Squid Game “fired”. On November 4, a reporter from Beijing Commercial Daily noticed that after the Squid Coin, which is at the center of public opinion, experienced a sharp rise and fall, there are still users who have a chance to continue to carry out related token transactions, and the price of Squid Coin is still fluctuating sharply.
In the opinion of analysts, when the market’s attention gradually cools down, Squid Coins will gradually disappear from the public view just like the air coins that have been speculated in the circle before.
Squid coin becomes the protagonist of the news
On November 4, a reporter from Beijing Commercial Daily noticed that after the plunge on November 1 and the price of the currency nearly returned to zero, Squid Coin is still currently being traded, but the trading volume has shrunk, and the trading price is also at a significant level. Fluctuating.
According to data from the global cryptocurrency market website CoinMarketCap, at 11:15 on November 4th, the trading price of squid coin ushered in a surge, rapidly rising from 0.037 US dollars to 0.1581 US dollars, a short-term increase of 327.3%, and a 24-hour increase of more than 2000% , And then showed a state of volatility, the increase narrowed.
As of 19:50 on November 4, Squid Coin reported $0.0845, a 24-hour increase of 367%; transaction volume was $67.604 million, a 24-hour increase of 928.44%. In the past 24 hours, the highest transaction price of squid coin was 0.1743 US dollars, and the lowest price was only 0.01078 US dollars.
According to a reporter from Beijing Business Daily, Squid Coin is an exclusive cryptocurrency for the game platform launched by the game company “play-to-earn” after the Korean drama “Squid Game” produced by Netflix became popular all over the world. The game was originally expected to be in 2021. The game was officially launched in November 2015. The game content mimics the plot of the TV series. Players have to buy and pay Squid Coins to earn more Squid Coins, which are ultimately used to exchange other cryptocurrencies for income. Some of these levels also require users to purchase customized NFT products that cost tens of thousands of dollars.
There is no limit to the number of participants, no limit to the upper limit of the final bonus…The squid coin, which is packaged as a “play-to-earn” cryptocurrency, started a skyrocketing mode after it went online for trading on October 26.
According to the historical transaction data of Squid Coin, the issue price of Squid Coin was 0.0123 US dollars. On November 1, the opening price of Squid Coin was 38.48 US dollars. The intraday skyrocket reached the peak of US$2861.8, which increased by more than 230,000 times during the first week of launch. However, as developers hold A large number of Squid Coins were sold at high prices. Within 5 minutes after reaching the high point, Squid Coins plummeted at a more rapid rate. Within 5 minutes, the price approached zero, and the lowest trading price in the day was less than $0.0007.
Under the gimmick of “Rise against Bitcoin”, the bizarre flash crash of Squid Coin has caused widespread discussion and once again aroused the industry’s high degree of concern about the risks of cryptocurrencies. According to Pan Helin, executive dean and professor of the Institute of Digital Economy of Zhongnan University of Economics and Law, the proliferation of foreign dollar liquidity has spawned a lot of hype. The “belief” and “richness” cases of cryptocurrency have induced users to flock. It is difficult to distinguish between true and false, and it also gives opportunities for cryptocurrency fraud.
Analysys Senior Analyst Su Xiaorui said that the trend of squid coin is a reflection and epitome of the large fluctuations in the price of cryptocurrency. Because it does not have actual value, it is easy to become a tool for speculation, so the currency value will also fluctuate in accordance with market sentiment. . And behind the squid coin, there is no lack of “black hands” manipulating the market and profiting from it.
“Taking advantage of the global popularity of the TV series “Squid Game”, Squid Coin combines market hotspots with cryptocurrency hype, which attracted more investors to enter the market and was eventually harvested.” Su Xiaorui said.
And users are lucky
A reporter from Beijing Business Daily searched through mainstream cryptocurrency exchanges such as Huobi, OKex, and Binance, and found that none of the relevant platforms has launched squid coin trading.
A user in the currency circle told the Beijing Business Daily that the generation of squid coins and other currencies are short and the developer information is not clear. In the initial stage, they can only be launched on decentralized exchanges, and direct peer-to-peer transactions can be realized between buyers and sellers. “Any currency can be traded on a decentralized exchange, which also means that the risk is even greater.”
The aforementioned currency circle users pointed out that the collapse of Squid Coin was a typical “carpet pumping” scam in the currency circle. Through speculation and manipulation, the price of cryptocurrency has risen all the way, and after a short period of rapid appreciation, it has encountered a “carpet”, the price of the currency has collapsed, and the currency held is also worthless.
On the other hand, a reporter from Beijing Commercial Daily noticed that before the squid coin crashed, there had been situations where it could not be sold on a decentralized exchange. At the same time, the short registration time on the official website of the squid coin operation and the grammatical errors in the project description have also caused doubts. At the top of CoinMarketCap’s information page about Squid Coin, it also reminded the risk of Squid Coin, “This project does not belong to the official IP of Netflix, but uses the same name.”
In the opinion of analysts, similar to the setting of “ultimately only one person can survive” in the plot of the TV series, there is a high probability that Squidcoin will eventually “survive” only the operating team that runs away from the money. Earlier reports pointed out that when the squid coin crashed, some users exchanged the $3.38 million squid coin for Binance Coin (BNB), which has been marked by Binance as “involving a scam”.
On November 4, a reporter from Beijing Commercial Daily found that Squidcoin’s website and social accounts had been blocked, and the project white paper was no longer available for viewing.
Regarding the recent price fluctuations of Squid Coin, the market generally believes that Binance stated that it will investigate the issuer of Squid Coin, which has attracted the attention of buyers. Many currency holders are optimistic about its price recovery. Continue to conduct related currency transactions.
“Cryptocurrency issuance has a certain degree of concealment. When investors perceive the movement of funds, it is often too late to stop it. At the same time, it is also difficult to clarify the identity of the developer behind the money transfer,” Su Xiaorui analyzed, at this time Users who are still trading, in fact, have a fluke mentality. They “fast in and out” to earn the difference under the large fluctuations of the currency price, or are eager for the price of the currency to rise, but they are actually more likely to be caught in it.
In addition, in response to Binance’s establishment of a team to investigate the specific measures and progress of Squidcoin operators, a reporter from Beijing Commercial Daily also tried to find out about Binance, but could not find its contact information.
Stay away from cryptocurrency
From 1 cent to close to 3,000 US dollars, and then close to zero in 5 minutes, Squid Coins, while staggering, also once again demonstrated the “magic” side of the coin circle.
On public social media, many netizens also joked that this is not “cutting the leeks”, it is uprooting the “leeks”. Regarding the current sharp price fluctuations of squid coins, some netizens said, “I didn’t make enough money in one wave, but I still want to make another wave.”
“The squid coin project is exactly the same as the previous air coin project. The issuer is not clear, there is no accurate project schedule and specific application scenarios,” Su Xiaorui pointed out, “this is also the main reason for the domestic crackdown on cryptocurrency transactions and related activities. First, with the domestic ban on cryptocurrency and its transactions, the living space of such frauds in my country will become narrower, and users will be better prevented from being deceived.”
Pan Helin told a reporter from Beijing Business Daily that Air Coin has the following characteristics. First, in terms of issuance, it is issued by individuals or small teams, lacking information disclosure and transparency, and the issuance volume is unlimited or difficult to limit; second, the transaction volume is relatively high. Small, participants can obtain control of the blockchain through computing power; third, there is no credit guarantee for issuance.
Pan Helin emphasized that, on the whole, Aircoin cannot achieve the function of mutual trust in blockchain technology, and once the blockchain is controlled by a small number of oligarchs, cryptocurrency will become a tool for bankers to collect money.
Regarding how domestic users can prevent such scams, Pan Helin bluntly said that the current domestic attitude towards cryptocurrency and its trading activities is severely cracked down and withdrawn. The only way for ordinary users to prevent risks is not to participate in related transactions. We must guard our country’s door to prevent the resurgence of new virtual currency fraud in our country.
Su Xiaorui also suggested that ordinary investors should clearly understand the situation and stay away from the current mixed cryptocurrency market, and related activities are not protected by law.
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