Price dropped 3.6 million times in just a few minutes, all Squid Game coin investors lost everything because of the classic ‘carpet pull’

Recently, the appearance of SQUID – a token based on Netflix’s hit TV series Squid Game is attracting the attention of the world crypto community. Although it has only been around for more than 10 days, this token has had a phenomenal growth in value, with an increase of 260000% (2600x) as of the end of yesterday.

In particular, at 16:30 this afternoon, November 1 (Vietnam time), SQUID was even rated as utopian, when it climbed to $2856 from the floor of $0.01282 – an increase of 222,776 times. Accordingly, the FOMO effect created from the media combined with the fact that users can only buy (but cannot sell) has continuously led SQUID to break price records. However, this can be considered as the last ‘reflection’ of the SQUID. Within just 5 minutes of peaking, the token completely collapsed 99.999% of its value.

SQUID Price Chart: After peaking for a few minutes, the token immediately collapsed in value with a ‘go to the ground’ drop. (Photo: Coinmarketcap)

According to Coinmarketcap data, from the peak price to dizzying, SQUID has decreased by 3.6 million times, from $ 2856 to $ 0.0007926 at 16:40 (Vietnam time). At the time of writing, the SQUID is currently worth around $0.002532, literally ‘going underground’.

According to Cointelegraph, the fall of SQUID came shortly after Twitter flagged the “official” accounts of SQUID, which had around 70,000 followers, as suspicious. After this account was restricted, the development team behind the SQUID token attempted to switch to other accounts for posting. However, these accounts were soon blocked by Twitter shortly after.

According to many crypto experts, what happens with SQUID is a prime example of a “Rug Pull” move . In the cryptocurrency market, Rug Pull (or Carpet Pull) is a term that refers to the action of the coin/token development team to withdraw all investors’ capital and run away. This action often occurs on decentralized platforms, when a certain token is drained of liquidity and is no longer valid for exchange, causing great damage to investors who previously purchased tokens.

It must also be added that what happens to SQUID is not surprising at all. In fact, the overheating growth of SQUID as well as the news that users cannot sell this token has led to a series of doubts from the crypto community for many days.

The collapse of the SQUID is a prime example of a “Rug Pull” – a term that refers to the act of withdrawing all investors’ capital and running away.

Accordingly, many investors have assumed that SQUID may be a scam project, when the identity of the founding team of SQUID is extremely shady. Some investors also pointed to problems in the SQUID’s white paper, including grammatical errors, typos, and “unverifiable” statements. According to popular website authority testing website Scamadviser, SQUID’s website is classified as “suspicious”, with a confidence score of 45 out of 100.

Even cryptocurrency tracking website CoinGecko bluntly warned users to stay away from SQUID because “this could be a scam”. Meanwhile, Netflix also asserts that it is not related to SQUID and requires users to be absolutely careful when investing in this token.