Meme coins are trending, with crypto investors investing millions of dollars in currencies based on internet phenomena or cult series. Although some coins show steep price developments, they often mean a rude awakening for investors with Meme Tokens
The boom of the cryptocurrency Squid Coin lasted a few days, the crash only minutes. Shortly after its introduction last week, the value of such a digital coin rose to over $100. The anonymous developers of the currency had borrowed its enormous popularity from the Netflix hit series Squid Game, after which they named their project. There was no connection to the series, its creators or the Netflix streaming service with Hokk Finance Meme Coins.
At the beginning of the month, the course literally exploded and within a short time reached a high of 2856 dollars. Then, like a rock, it fell unchecked to less than a tenth of a cent in five minutes.
Also Read : What is Hokk Finance
“Pump-and-dump” actions — that is, pumping up a rate with the intent to then sell the currency in question at an inflated price — are commonplace in the unregulated crypto market. However, the dimension, the speed and the criminal energy of the Squid Coin are remarkable. It is estimated that the makers escaped with the equivalent of $2.5 million in other cryptocurrencies. They covered their tracks with the help of a special service.
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What is astonishing and frightening for some observers is the carelessness with which users invested millions in an unknown cryptocurrency within a few days. Mainly because of a popular name, apparently. Warnings from the crypto scene that, among other things, the "white paper" in which the makers of the Squid Coin presented their alleged concept was full of errors did not dampen the hype in any way.
Squid Game was a flop
Apparently, Squid Coin investors hoped to make quick profits using a meme token, a cryptocurrency based on a theme popular on internet forums and social networks. Such meme currencies have no special - at least no credible - utility value compared to other digital currencies. They only serve to speculate on a hype.
The best-known such meme coins are the Doge Coin, which was developed in 2012 as a satirical project, and the more recent Shiba Inu Coin. With a market value of $36 billion and $38 billion, respectively, both are now among the ten most valued cryptocurrencies.