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News Summary 11/3: Squid Game, Meta, Stablecoins, Shiba Inu, Crypto.com

The price of the SQUID token plummeted. Facebook’s rebranding to Meta had also an impact on the crypto market. Stablecoins are being regulated in the United States. The Shiba Inu token turned a mystery person into a billionaire. Crypto.com is investing $100 million in an advertising campaign with Matt Damon.

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Squid Game token collapsed in an unprecedented way

This fall’s most popular TV series is Squid Game, produced by Netflix. The production cost only about $25 million, but the series is now valued at billion dollars. You can watch the trailer here.

The popularity of Squid Game has also attracted online scams. One of these was the Squid Game token (SQUID), which was created about a week ago.

The SQUID token was a pure scam from the beginning. It promised investors access to a play-to-earn game, among other things. No game was ever being built.

Earlier this week, it was discovered that many investors couldn’t sell their coins at the popular Pancakeswap DEX. It didn’t take long until the rug pull happened.

This video streamed the price development of the SQUID token in real-time. Token’s price reached about $2,900 before plummeting to $0.0007926. Thousands of bag holders were born again. This means small investors, who are left holding worthless cryptocurrency.

It’s interesting that SQUID tokens have been traded even after the collapse. The price has risen to around $0.078, but in the end, it is expected to go to zero.

Facebook rebranded to Meta

Facebook has rebranded to Meta. The new name is an acronym for Metaverse. Some crypto investors are familiar with this word due to projects like Decentraland.

Wikipedia explains the concept:

The metaverse (a portmanteau of “meta-” and “universe” or “Universe” and “Meta”) is a hypothesized iteration of the internet, supporting persistent online 3-D virtual environments through conventional personal computing, as well as virtual and augmented reality headsets.

Metaverse is the next generation of the Internet. Facebook founder Mark Zuckerberg describes the new brand in the following video.

The name change applies to the publicly listed company, Facebook. Apps like Instagram, Facebook, and WhatsApp will continue to use their own brands.

Facebook’s announcement had also an impact on the crypto world. Decentraland’s MANA token rose by more than 300 percent in just three days. Sandbox (SAND) also went up by more than 100 percent in a couple of days.

Other well-known global companies are also striving for this sector.

The U.S. is beginning to regulate stablecoins

On Monday, the U.S. Treasury Department released a document regarding the regulation of stablecoins. This has been expected since the last summer when Treasury Secretary Janet Yellen publicly warned about stablecoins.

“Stablecoins and stablecoin arrangements raise significant concerns from an investor protection and market integrity perspective” a recent report warns. You can read the report here.

Stablecoins have taken on an important role in the crypto world due to the massive growth of DeFi. Stablecoins are currently in huge demand. More and more institutions want to exchange their traditional dollars for stablecoins and transfer funds to DeFi services for earning yield.

Interest rates on government bonds and bank accounts have been at zero for several years. Stablecoins, on the other hand, can earn a yield of up to 10%.

The stablecoin market has grown by more than 500 percent in 2021. Tether has a market value of over $71 billion and USD Coin has a market value of more than $33 billion.

With the huge increase in popularity, it is no surprise that the United States, the world’s largest financial market, wants to regulate stablecoins.

The biggest concern with stabelcoins is collateral. Tighter regulations would make life difficult especially for Tether. There has been debate over Tether’s collateral for over four years. It is yet to be resolved. U.S.-based (and more regulated) competitors would certainly have an edge.

It is also unclear which office the stablecoins are subject to. Gary Gensler, director of the SEC, has hinted that stablecoins could be even considered securities. You can watch a YouTube video about it here.

Monday’s report was received positively by the market and had no effect on cryptocurrency prices.

The best trade of the century was made with Shiba Inu

The meme coin Shiba Inu has become one of the largest cryptocurrencies in recent weeks. A moment ago, the SHIB token became one of the top 10 cryptocurrencies bypassing the original meme coin Dogecoin.

When speaking of coins like Shiba Inu, it is good to remember that such price moves are only about hype. There is no world-changing idea behind Shiba Inu and it does not solve any real-life problems. It is just another coin with no fundamentals.

Only a small proportion of investors can sell such coins at a good price because there is not enough liquidity. Many small investors will eventually become so-called bag holders.

The only reason to buy meme coins is when the price goes up and speculate it keeps going higher. When the downhill eventually starts, Shiba Inu will likely rumble down in rankings. Nobody wants to hold a meme coin that is going down in price.

However, some investors manage to make profits in this game. Here’s one mystery investor who succeeded with Shiba Inu.

This person bought Shiba Inu a year ago for about $8,000. Now that investment is worth an incredible $5 billion!

After finding out this Shiba Inu wallet exists, many believed it was a lost wallet. It is highly unlikely that anyone could hold a meme coin like Shiba Inu for such a long time without taking any profits. However, this investor is real.

As the tweet says, this investor has woken up. The tokens in the wallet have begun to move. At the time of writing this article, there is no evidence of any large-scale sales, but it may well happen in the next few days.

We shouldn’t forget Ethereum founder Vitalik Buterin either. During the founding stage of Shiba Inu, about 50% of all existing Shiba Inu tokens were sent to Buterin’s wallet. These coins are currently worth tens of billions of dollars.

Buterin, however, destroyed almost all the tokens he received because he didn’t want to hold them. Buterin is hardly annoyed by the situation, as the value of his own ETH bag is well over a billion dollars.

Cypto.com invests $100 million in Matt Damon

Crypto.com is a mobile app that has gained huge popularity in recent years. It is particularly well-known for the Visa Debit cards. Crypto.com offers an easy fiat on-ramp with buying, selling, and staking cryptocurrencies.

Crypto.com is also a highly visible brand. The company has spent a huge amount of money advertising on social media and sports events. The latest investment is a collaboration with actor Matt Damon.

You can watch the video below. It is directed by Oscar-winning Wally Pfister, who has worked on many movies directed by Christopher Nolan.

Crypto.com has invested more than $100 million in the campaign. The ad will run in more than 20 countries for several months. The bet seems to be paying off, as the Crypto.com app became the most popular app in the Google Play Store in the United States.

The campaign has also given a boost to CRO token, has seen a price rise by more than 36 percent. Overall, however, CRO has fared poorly. It was ranked as a top 15 coin two years ago. Now the CRO token is not even in the top 30 despite the recent move.

Crypto.com users can stake CRO tokens to get better Visa cards. Cashbacks are also paid in CRO tokens.

Photo by Flickr / Marco Verch

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