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What Was Fishy About The Squid Game Token?

A Binance Smart Chain crypto token by name "Squid Game" inspired by Netflix's Squid Game opened trade on October 26,2021 at $0.01229. On the next day, it hit a high of $0.1386, around 11 times higher than the opening price. One day after, it again hit a high that was still 16 times higher. The exponential surge in prices continued till November 1, when it hit a day high that was 74 times the previous day's high. By this time the token's price had rallied from $0.01 to $2,861.80, implying a surge of 23285498 percent in a week's time. And that was end-game, literally.

As soon as the price peaked and in a matter of seconds, the price of the token plunged to $0.0007926, lower than the opening price, eroding the built-up market capitalization and the hopes of many an investor to cash-in on the raging token's extraordinary price momentum. The token crashed as reports emerged that the token's alleged developers terminated the project and had run away with the investor proceeds of more than $2.5 million worth of Binance coin tokens.

Squid Game crypto, with a supply of 800 million units, was being marketed as a play-to-earn cryptocurrency, that could be used in online games, allowing earning further tokens which could later be exchanged for other cryptos or even national currencies. The dramatic turn of events in the token, happened ahead of the planned launch of the game in November.

Last week, reports had emerged of multiple users claiming inability to sell the token on PancakeSwap, a decentralized exchange on Binance Smart Chain, that allows users to securely trade Binance Coin (BNB) and BEP-20 tokens without relying on centralized services or losing control over private keys. Little did the holders realize that a token, inspired by a brutal survival drama would traumatize investors who had jumped into the bandwagon amazed at its skyrocketing prices.

There are also reports that the token's whitepaper had an anti-dumping protocol aimed at avoiding a collective market sell-off.

Coinmarketcap.com's warning on the subject is as follows "We have received multiple reports that the website and socials are no longer functional & users are not able to sell this token in PancakeSwap. There is growing evidence that this project has rugged. Please do your own due diligence and exercise extreme caution. This project, while clearly inspired by the Netflix show of the same name, is NOT affiliated with the official IP".

A rug-pull, according to coinmarketcap.com is a malicious manoeuvre in the cryptocurrency industry where crypto developers abandon a project and run away with investors' funds. Rug pulls thrive on Decentralized Exchanges because these types of exchanges allow users to list tokens for free and without audit, unlike in centralized cryptocurrency exchanges.

Tornado Cash protocol, developed to satisfy privacy oriented crypto users appears to have helped masquerade the heist transactions from full public view. Using Tornado Cash, transactions are mixed in a way that completely obfuscates the transaction information. It essentially improves the privacy of transactions by breaking the on-chain link between a source and a destination address.

More may emerge on the modus operandi of this crypto heist in the days to come.

The Squid-Game fiasco is a classic example of get-rich-quick schemes that goad gullible investors to an unacceptable level of risk appetite for the sake of making quick money, easily. Crypto world practically has no regulation other than self-discipline and risk awareness.

Caveat Emptor. Let the buyer beware!

Will Avengers emerge to make crypto world a better and safer place?

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