The SQUID token was advertised as a cryptocurrency that could be earned through playing. Squid Game’s token rose over 310,000% in only a very few days following its introduction on October 20th, according to CoinMarketCap. With the recent rise of play-to-win games, cryptocurrency traders quickly invested in SQUID tokens. The developers of the Squid token said that the winners of the game would be rewarded with more tokens. But this was only the start of another “rug pull” fraud that was to come.
The crooks took advantage of the project’s volatility, fleeing with $3.38 million in cryptocurrency within a week after SQUID began trading on PancakeSwap. After SQUID became live on PancakeSwap, its Telegram channel began limiting people’s comments. There was a 99.9% drop in the token’s worth from a recorded peak of $2,861 to zero.
Despite the promises they made, there were obvious warning indicators. The concept that traders could only purchase SQUID tokens but not resell those on the same platform was perhaps the most apparent warning sign. There were several spelling and grammar issues, as well as a phony testimonial from Elon Musk on Squid’s site.
The creators have been the only ones to profit financially from the Squid game tokens. Many cryptocurrency traders got the token ignoring all the warning bells and the absence of formal sponsorship, hoping for fast gains. There were also no responses allowed on the Twitter feed. SquidGame.cash and all the site’s social networking sites stopped working when customers began to express worry.
Prominent cryptocurrency site, CoinMarketCap stated it had informed the traders about the questionable actions of Squid Game token. Moreover, the traders were recommended to conduct their proper research and practice prudence when dealing with this currency. But the traders didn’t put an ear on this and lost a lot. It is always a good practice to research before investing.