The popular Korean Netflix TV series-inspired “play-to-earn” cryptocurrency Squid Game (SQUID) tanked almost 99 percent on November 1 in what is suspected to have been a rug pull. This happened after people who bought the cryptocurrency rained their complaints on the project as a scam, as they were not able to sell on PancakeSwap.
The SQUID token rose more than 110,000 percent since launching last week. Just like the original Squid Game drama, the whitepaper for the cryptocurrency project reads that players can participate in six online games, after which the winners will be rewarded with prizemoney.
The more people join, the larger the reward pool will be […] 10 percent of the entry fee will be sent to the developer’s wallet, and the [remaining] 90 percent will be added to the reward pool for the last winner of the game.
Squid Game whitepaper
This project was not in any way related to Netflix or the producers behind the eponymous Korean TV series, which raised red flags against the SQUID crypto:
Did SQUID Pull the Rug?
As many had warned, the SQUID crypto game was rug-pulled. The price of the token dropped nearly 100 percent from US$2,864 to US$0.005. The website for the crypto game was also taken down at the time of writing. Sadly, a lot of people who invested in the SQUID token are left head-scratching in regret as their funds vanished in a matter of minutes.
Before the crash, CoinMarketCap had warned that investors weren’t able to sell their tokens on PancakeSwap:
We have received multiple reports that the website and socials are no longer functional and the users are not able to sell this token in Pancakeswap […] This project, while clearly inspired by the Netflix show of the same name, is not affiliated with the official IP.
CoinMarketCap
Investors were trapped and some lost everything. The takeaway is to think twice before investing into new meme projects with no utility.
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