Hello dear readers, today we are going to start by talking about the infamous Squid Game token and how the scam really unfolded. It all began with the coin debuting on two popular DEX’s- DODO and PancakeSwap. The developer’s of the token developed it on the Binance Smart Chain and made the token resemble the recently launched popular Netflix series, the Squid Games. This misguided most of the novice investors into believing that this token was actually related to the popular Netflix series and the team behind the web series was backing the project. So, this instilled a lot of confidence in the people and made them believe in the project. Hence, the coin garnered a lot of investors. The coin was based on a play-to-earn model that meant that a user could play various games related to the project and in return, they would earn more Squid tokens as a game reward. The only catch was people had to pay an entry fee with their already purchased or invested Squid tokens to play the trending games. The games even heavily depicted various scenes from the Squid Game web series further adding the notion that the project was really backed by the original team behind the popular web series.
The token became so popular that its investors even turned a blind eye to many major red flags like the plethora of spelling mistakes on its official website along with fake endorsements from big names like Elon Musk and the most alarming part was users couldn’t sell the token. Yes, you read that right, user’s could only buy it but not sell it.
Despite all this, the token was able to reach an impressive eye-catching ATH of $2,856. But all of this ended on November 1, when suddenly the message below was posted on the project’s official Telegram channel:
“Squid Game Dev does not want to continue running the project as we are depressed from the scammers and is overwhelmed with stress. We have to remove all the restrictions and the transaction rules of Squid Game.”
Thus, completing the whole rug pull process. The price of the token almost instantly dumped from its ATH of $2,856 to $0.004 which was a 99.98% drop.
Currently, the world largest crypto exchange, Binance has stepped up as a goodwill gesture by announcing that it will be establishing a team to help law enforcement agencies get to the bottom of this as the scam token was originally based on the Binance Smart Chain, though Binance has made it clear that BSC is an open-source ecosystem and so, Binance has no oversight of the projects built on it.
Strangely, the coin again pumped up by 660% right after Binance announced to help.
That will be all for now folks. Make sure to subscribe to our newsletter to receive weekly updates on all kinds of interesting topics.
Disclaimer- This article isn’t a piece of financial advice.