ASSAM (CoinChapter.com) — SQUID, a token that governs the play-to-earn platform, Squid Game, named after the renowned Korean Netflix thriller and deemed a scam, rose by nearly 400% in a single day after dropping more than 99% earlier this week.
According to the price chart from CoinmarketCap, the token rose from $0.014 on Oct 26 to $0.1 on Oct 28. Continuing the upward trajectory, SQUID ended 28th at a price above $2.2. On the very next day, prices crossed $10, jumping above $100 on Nov 1.
SQUID made the all-time high of $2,861 on Nov 1. However, minutes after logging its benchmark rally, the token crashed by more than 99% to an all-time low of $0.0007926. At press time, the token was up by more than 10,000% from the all-time low.
With a strong surge in trading volumes and market capitalization, SQUID — that traders deemed dead — came back to life. But, unfortunately, frustrated users who bought the tokens on Pancakeswap and DODO platforms could not sell them, unable to capitalize on the gains.
SQUID scam brought a few lessons for investors
Although the token derives its name from the popular Netflix show, its creators have nothing to do with the token, as mentioned in CoinMarCoinMarketCap’se. Furthermore, the website and Twitter handle promoting the token vanished into thin air, leaving no clues as to who the creators were.
Scammers managed to run away with millions of investors. According to a report by CNBC, one of the investors, Bernard, invested his entire life’s savings in the token, amounting to $28,000. Unfortunately, after the crash, he has no means to pay the bills.
Binance, the world’s leading crypto trading platform, will investigate the creation and distribution of the SQUID token. According to a statement, Binance will be “black” sting addresses affiliated with the developers and deploying blockchain analytics to identify the bad actors.”
This “token is a classic example of a rug pull. With thin order books and increased manipulation by inside whales, it becomes easy for developers to attract investors new to crypto. But, unfortunately, these whales take away the profits as the entire token is worth next to nil.
The current rise can be affiliated with inside whale activity, attracting more investors to buy more SQUID tokens. However, it is advised that investors should never invest in a token without any official backing.