The value of a digital token based on the famous South Korean Netflix series “Squid Game” has plummeted to near zero after it was proven to be nothing more than a scam. Squid, which advertised itself as a “play-to-earn cryptocurrency,” had seen its price surge by thousands of percent before it dropped in value overnight.

Crypto investors refer to the type of scam used in Squid as a “rug pull.” Creators essentially bloat the value of an altcoin or digital currency before suddenly selling their majority stake. The promoter of the digital token generally suspends trading before withdrawing the funds received from sales.

According to the technology website Gizmodo, Squid’s creators got off with an estimated $3.38 million (£2.48 million).

Squid coin or $squid was created as a “play-to-earn” cryptocurrency where users can earn more tokens by playing online games, which can then be swapped for other cryptocurrencies or national currencies. Squid coin was trading at only one cent on Tuesday. Its value was pegged at about $2,856 per coin just a day before.  

According to cryptocurrency tracking website CoinMarketCap, its value has now dropped by 99.99 percent.

Squid was described as a currency that could be used in a new online game based on the Netflix series, which follows a group of individuals who are compelled to play dangerous children’s games for money. The game was supposed to launch this month.

Cryptocurrency specialists have warned of multiple red flags indicating it was most likely a hoax. The fact that those who acquired Squid tokens were unable to sell them was one of the biggest red flags.

Critics also pointed out that the company’s website had several typos and grammatical issues. The website has gone down, as have the social media profiles that promoted the tokens.

Squid was available for purchase on decentralized cryptocurrency exchanges such as PancakeSwap and DODO, which let buyers and sellers interact directly without the use of a central authority.