The Squid Game cryptocurrency saga is a textbook example of how hype, deception, and human emotion can collide in the volatile world of digital assets. What began as a viral sensation inspired by a globally popular Netflix series quickly turned into a financial disaster for thousands of investors when the so-called "Squid Coin" collapsed from over $2,800 to nearly zero in minutes—erasing a staggering **$1.74 billion in market value** almost overnight.
This wasn’t just a market correction. It was a rug pull, a predatory scam where developers abandon a project and run off with investors’ funds. In this case, the creators of Squid Coin exploited the fame of Squid Game, the South Korean survival drama, to lure unsuspecting participants into what appeared to be an innovative blockchain gaming experience.
But here's the harsh truth: no official connection existed between Netflix and the Squid Coin project. Yet, fueled by media coverage and social buzz, retail investors poured money into the token—many losing everything.
So how do you protect yourself in a space rife with scams, volatility, and misinformation? Below are four essential investment principles designed to help you navigate the crypto landscape without becoming the next victim.
Rule 1: Never Invest in What You Don’t Understand
“Investing is the realization of your understanding.”
If you can’t explain how a cryptocurrency works—its purpose, technology, tokenomics, or real-world use—you shouldn’t invest in it. Period.
Before putting any money into a digital asset, conduct thorough due diligence. Use platforms like CoinMarketCap to research key metrics such as:
- Market performance and historical price data
- Project team background and credibility
- Whitepaper quality and technical feasibility
- Community engagement and sentiment
- Exchange listings and liquidity
You can also adopt investor frameworks like the one proposed by John Hargrave in Blockchain: The Next Investment Revolution. His “Investor Scorecard” evaluates projects across five critical dimensions:
Market Potential
Does it solve a real problem? Who’s the target audience? Is there scalable demand?
Competitive Advantage
What sets it apart? Is it built on unique tech or first-mover advantage?
Team Credibility
Do the founders have relevant experience? Are they transparent and reputable?
Token Economics
How is supply managed? Is there inflation control? Is the utility clear?
User Adoption
Is the product easy to use? Is there organic traction or just hype?
Ignoring these factors is like driving without a license—reckless and dangerous. In crypto, knowledge isn’t just power; it’s protection.
👉 Discover how to analyze crypto projects like a pro with tools trusted by seasoned traders.
Rule 2: Don’t Blindly Trust Media or Celebrities
When Squid Coin surged, headlines exploded across major news outlets like CNBC and BBC. Many investors saw this coverage as validation—proof that the project was legitimate.
But here’s what most reports failed to clarify: Netflix had nothing to do with Squid Coin.
Media attention doesn’t equal legitimacy. Often, journalists report on price movements without vetting the underlying project. Similarly, celebrity endorsements—whether real or fabricated—are not endorsements of safety or value.
As Santander, Europe’s fourth-largest bank, warned: "Just because a famous person promotes something doesn’t mean it’s trustworthy."
Hype breeds FOMO (fear of missing out), which clouds judgment. Always verify claims independently. Ask: Who benefits from this narrative? Is there an agenda behind the headlines?
Remember, sensationalism sells stories—but it also sells scams.
Rule 3: Never Take Financial Advice from Strangers
Be extremely cautious when someone you don’t know reaches out online offering “guaranteed” crypto returns.
As Yang Shu-Ming, host of Bill’s Financial Kitchen, put it:
“If a stranger messages you with a ‘can’t-lose’ crypto strategy promising 0.6% daily returns, it’s almost certainly a pyramid scheme reborn in digital clothing.”
These scams often follow a predictable pattern:
- The scammer gains your trust by helping you make small profits.
- They encourage larger investments.
- When you try to withdraw, they invent excuses—like fake tax fees or compliance checks.
- Eventually, they disappear.
Social media DMs, Telegram groups, and fake trading gurus are breeding grounds for such frauds. Real investing doesn’t happen through private chats promising quick riches.
Stick to regulated exchanges and verified platforms. Transparency matters.
“The world you see online isn’t real—especially when it comes to virtual money.”
👉 Learn how secure trading platforms help protect users from common crypto scams.
Rule 4: Only Risk What You Can Afford to Lose
This is perhaps the most important rule in speculative investing.
Ask yourself:
- Can I afford to lose every dollar I put in?
- Will this loss affect my rent, food, or family obligations?
If the answer is yes to any negative impact, then you’re investing too much.
Treat high-risk assets like crypto as speculative ventures—not retirement savings. Assume the entire amount could go to zero tomorrow.
“If you lose it all, treat it like buying a lottery ticket.”
That mindset shift reduces emotional decision-making. Greed drives people to chase pumps; fear makes them panic-sell during dips. Both lead to losses.
Set strict limits. Allocate only discretionary funds—money you wouldn’t miss if gone.
The Psychology Behind the Crash: Greed, Hope, and Illusion
At its core, the Squid Coin crash wasn’t just about technology or finance—it was about human psychology.
In Squid Game, players could vote to end the deadly games at any time. At one point, after witnessing brutal violence, protagonist Seong Gi-hun chooses to leave. But back in reality—facing debt, isolation, and despair—he returns, drawn by hope and greed.
Sound familiar?
Many crypto investors do the same. They enter chasing dreams of fast wealth, ignore red flags, and stay too long—until they become the final “squid” in the game.
“Every game has one squid. If after 45 minutes you don’t know who it is—you are it.”
The enemies of successful investing aren’t market crashes. They’re ignorance, greed, fear, and false hope.
Frequently Asked Questions (FAQ)
❓ Was Squid Coin officially linked to Netflix’s Squid Game?
No. Despite using the same name and branding elements, there was no affiliation between Netflix and the Squid Coin developers. The project exploited the show’s popularity for marketing.
❓ What is a rug pull in crypto?
A rug pull occurs when developers suddenly abandon a project and withdraw all investor funds, often coded into the smart contract from the start. Prices collapse instantly.
❓ How can I spot a potential scam coin?
Look for red flags: anonymous teams, unrealistic ROI promises, lack of whitepaper details, restricted selling features (like Squid Coin’s no-sell rule), and excessive hype without substance.
❓ Are all meme coins scams?
Not necessarily. While many are highly speculative, some (like Dogecoin or Shiba Inu) have large communities and exchange support. Still, treat them as high-risk bets—not investments.
❓ Should I avoid crypto altogether after events like this?
No—but approach with caution. Crypto has transformative potential, but requires education, discipline, and risk management. Stick to well-established projects and reputable platforms.
❓ How can I safely start investing in crypto?
Begin with research. Use regulated exchanges. Start small. Diversify. Avoid leverage unless experienced. And always secure your private keys.
The collapse of Squid Coin wasn’t an anomaly—it was a warning.
In a world where digital assets move faster than regulation can keep up, your best defense is awareness.
Apply these four rules consistently:
- Invest only in what you understand
- Question media narratives and celebrity hype
- Ignore unsolicited financial advice
- Never risk more than you can afford to lose
The next Squid Coin will come—probably with even flashier promises. When it does, remember: don’t be the squid.
👉 Stay ahead of the market with advanced analytics and secure trading tools—start your journey today.