A Squid Game inspired cryptocurrency has been labelled a scam after disappearing from the internet with millions of pounds worth of investors’ money.
The token – a Bitcoin rival - had surged by more than 300,000% since launching in the aftermath of the Netflix show.
It reached highs of $2,850 (£2,089), before suddenly crashing to almost zero and vanishing on Tuesday.
Players first sounded the alarm over Squid, which marketed itself as a 'play-to-earn cryptocurrency', after its owners banned investors from reselling their tokens.
It said the move was in place to stop people distorting the coin’s market value.
They claimed they were developing a second cryptocurrency that would allow resales.
Had you invested in the Squid Game currency? Get in touch: emma.munbodh@mirror.co.uk
There was also no official licensing agreement for the use of the Squid Game intellectual property and many had complained that its website contained many suspicious spelling mistakes and grammatical errors.
Investors now fear those factors were all part of a scam.
The UK’s financial watchdog the FCA has long warned against savers investing in cryptocurrencies because of how volatile and unregulated they can be.
This type of scam is known as a "rug pull". It happens when the promoter of a digital token draws in buyers, stops trading activity and makes off with the money raised from sales.
More than 111million viewers tuned in for Netflix’s Squid Game series last month, breaking the streaming giant’s all-time record.
The show is based on a series of punishing challenges that give people in debt the chance to win £26million. Those that fail face death.
Former head of digital forensics at Dorset police and now cybersecurity specialist at ESET, Jake Moore, told The Mirror: “Like many internet scams, cryptocurrency scams align themselves closely to popular trends and after the hype of Squid Game, this is no different.
“People need to pay close attention to what they are investing in as these particular scams are not new.
“So called “pump and dump” cons are usually tied in with the latest trends to attract more attention but this in fact should be the warning needed to alert potential buyers into avoiding them.
“People need to be mindful of the perils that come with cryptocurrencies and stick to well-reviewed known coins and exchanges. There is still no guarantee or insurance when things go wrong in the world of digital money.”
The FCA has previous warned: “Consumers should be aware of the risks and fully consider whether investing in high-return investments based on cryptoassets is appropriate for them.
"They should check and carefully consider the cryptoasset business involved."
How to check a firm is legitimate
Step 1: Consumers should check if the firm they're using is on the Financial Services Register or list of firms with Temporary Registration (Note: appearing on the Temporary Registration Register does not mean that the FCA has assessed them as fit and proper, nor that the FCA has determined their application for the purposes of the Money Laundering Regulations).
Step 2: If they're not on the register, consumers should ask the firm whether they are entitled to carry on business without being registered with the FCA.
Step 3: If they're not registered, the FCA suggests that consumers should withdraw their cryptoassets and/or money. This is because the firm is operating illegally if it has not ceased trading by 9 January 2021.
