SQUID May Be One of the Biggest Rug-Pulls in the History of Crypto
The SQUID token is supposedly positioned to make a comeback a year after one of the biggest "rug-pulls" in cryptocurrency history.
SQUID was launched on Binance Smart Chain last year, attracting a lot of attention. More than 40,000 investors were obliterated as the token soared from $0.01 to $3,000 before crumbling down to 0.
The developers launched the project while the Netflix show, “Squid Game” was gaining popularity at incredible pace and targeted Gen Z and millennial investors looking for quick profit. Netflix denied the project was officially connected to the series.
In “Squid Game” cash-strapped people play games from their childhood to win a cash prize. Similarly, the developers attracted investors by offering a play-to-earn game in which they could earn marbles needed to sell their SQUID coins.
After its arise to fame the developers drained all liquidity from the project, walking away with about $3.3 million.
There were many implications surrounding the project pointing at a probable scam, such as the website full of grammatical errors, an anti-dump mechanism that made it difficult to sell SQUID tokens, and much more.
Commenting on the anti-dump mechanism Exodus CEO JP Richardson said the following:
If your money has to be blocked it clearly shows that it is a fraud.
Shortly after the project was launched, the developers took down the website. They also stopped communication on most social networks. Later, they posted on Telegram that a hack had taken place on the platform.
Someone is trying to hack our project. Not only the Twitter account, but also our smart contract… Squid Game Dev doesn’t want to continue running the project as we are depressed from the scammers and are overwhelmed with stress.
BscScan have identified eight wallet addresses linked to the scam. One of them, which holds 5% of all SQUIDs in circulation, exchanged $3.38 million worth of the token into BNB before sending the funds through the crypto mixer Tornado Cash.
Although there is no team, one year later the SQUID is still speculatively traded and has a market cap of around $4 million.
Reportedly, the project is now community-driven and fully decentralized. According to a Reddit user, investors believe the price of SQUID will increase significantly on the first anniversary. Another user mentioned that this could happen when the second season of the TV series comes out.