According to Coinmarketcap, the SQUID token has effectively gone to zero. This was a token that caused much hype when it launched over a week ago. To all apparent purposes it was a crypto/blockchain-based game that was riding the Netflix sensation of the same name. However, it appears that the game had been set up as a scam.
The world of cryptocurrencies could be likened to a sweet shop right now. There are all kinds of delectables that can be purchased. A lot of them taste incredibly good, and their shelf life has potential for many years to come.
However, some of the sweets are put there for a joke, or to cause a lot of unpleasantness for the unwary buyer who is looking for something different, and something that perhaps might be dangerous, but which might have the most marvellously tasty centre.
Squid Game did not have that delicious centre. Instead, all purchasers of the token will have woken up this morning with quite some stomach ache at the news that the token has effectively gone to zero.
It all looked fairly above board initially. CNBC published an article on the massive price rise experienced by the in-game SQUID token. It did however report that Coinmarketcap had issued a warning stating that “multiple reports” had been received complaining that investors who had bought the token, were then unable to sell it on Pancakeswap, the only platform where the token was listed.
A bit of investigation into the Squid Game whitepaper revealed that there was an “anti-dump mechanism” built into the token. It also appeared that the only investors who would be able to sell would be those that also bought the MARBLES token.
According to the whitepaper, holding the MARBLES token would allow a SQUID token holder to see their SQUID at any time, but only by using the SQUID/BNB pairing – users adding liquidity for any other pair would be punished according to the whitepaper.
It can be expected that quite a few more crypto scams are pulled before the bull market is over. Those who enter the sector do so at their own risk. However, there are amazingly good tokens and coins with fundamentals and history behind them. Trade with care, and do your due diligence before buying.