CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Polkadot hits ATH while Squid Game-inspired token collapses

By Mensholong Lepcha

04:37, 2 November 2021

Netflix hit “Squid Game” inspired memecoin collapsed
Netflix hit “Squid Game” inspired memecoin collapsed – Photo: Shutterstock

Polkadot token became the latest cryptocurrency to hit an all-time high on Tuesday, while a memecoin inspired by Netflix’s hit “Squid Game” collapsed from over $2,800 to $0.0007926 within five minutes.

Blockchain network Polkadot’s token DOT surpassed the $50 mark for the first time and hit an all-time high of $50.87 on Tuesday, according to CoinGecko.

Polkadot pared gains after hitting its peak but traded more than 15% higher over the last 24-hours at $49.33 in early Asia trade on Tuesday.

Polkadot's parachain auctions to launch soon

Polkadot recent run of form comes on the back of the upcoming launch of parachain auctions on its platform.

Parachains are interoperable blockchains that run on Polkadot’s network that developers can customise to suit their decentralised applications. Projects need to win parachain auctions to access blockchains on Polkadot’s network.

Meanwhile, the Squid Game-inspired token SQUID’s collapse served a timely reminder to speculators about the pitfalls of pouring money into fad cryptocurrencies, as media reports suggested a scam following the token's 99.99% drop.

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SQUID token wipeout

“We have received multiple reports that the website and socials are no longer functional & the users are not able to sell this token in Pancakeswap. Please do your own due diligence and exercise extreme caution,” said CoinMarketCap on its website.

The SQUID token which was created to give token holders access to online games inspired by the Netflix show has an “anti-dump mechanism” with many complaining on social media about their inability to sell the coin.

“On PancakeSwap you can buy into SQUID, but not sell. You can only sell when you have Marbles. Marbles are only earnable through playing the game You use your SQUID to 'buy in’,” said a Reddit user named King_J990.

BTC/USD

96,128.95 Price
-0.690% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 50.00

ETH/USD

3,314.64 Price
-0.090% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 1.75

DOGE/USD

0.31 Price
-3.660% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0015369

PEPE/USD

0.00 Price
-3.520% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00000009

Shiba Inu-Dogecoin pair to list on Binance

Elsewhere, Bitcoin rose 1% to $61,020.32 while Ether advanced over 2% to $4,310.76 in early Asia trade on Tuesday.

Shiba Inu edged 1.8% lower to $0.00007023 ahead of its debut on cryptocurrency exchange Kraken. Dogecoin remained below Shiba Inu in terms of market capitalisation on Tuesday as prices inched 0.6% lower to $0.2693 in early Asia trade.

Cryptocurrency exchange Binance announced that it will open trading for a Shiba Inu and Dogecoin pairing on Tuesday on the back of their growing popularity. Binance Markets Limited is not currently permitted to undertake any regulated activities by the Financial Conduct Authority in the UK. This means that if UK residents invest in certain cryptoassets with Binance they will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong. 

Read more: US regulators call on Congress to quickly pass new stablecoins laws

The difference between stocks and CFDs

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

Markets in this article

BCH/USD
Bitcoin Cash / USD
445.70 USD
-5.4 -1.200%
DOGE/USD
DogeCoin / USD
0.3081596 USD
-0.0116761 -3.660%
DOT/USD
Polkadot / USD
6.8568 USD
-0.099 -1.430%
DOT/USD
Polkadot / USD
6.8568 USD
-0.099 -1.430%
ETH/USD
Ethereum / USD
3314.64 USD
-2.93 -0.090%

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