The price of the coin that followed Squid Game increased by 2600 times, but investors could not sell

Taking advantage of the popularity of Squid Game – the hit series that is storming on Netflix, a token of the same name (codename: SQUID) has quickly appeared on the cryptocurrency market. Although just opened for sale during the presale (pre-sale) taking place on October 20, SQUID has experienced extremely rapid growth in value, with an increase of up to 260000% (2600x) in a short time, according to data from cryptocurrency tracking website Coinmarketcap.

According to the SQUID development team, this token can be used in the Play-to-earn game project scheduled to launch in November. As a token born based on the inspiration of Netflix’s TV series, SQUID will also have a total of 6 stages for investors to participate in, with a large bonus for the last winning player.

However, players need to buy a certain amount of SQUID to participate or restart if they lose, with “fees” ranging from 650 – 15,000 tokens. 10% of the tokens from this fee will be sent to the SQUID development team, while the remaining 90% will make up a huge prize for the winner.

“Great profit” but can’t sell

According to CoinTelegraph, PancakeSwap is currently the only exchange where users can make SQUID investments. This token is currently trading at 35.58 USD at press time, among the top growth coins/tokens on Coinmarketcap, with daily trading volume at 6-7 million USD. The problem is that, despite earning a ‘terrible profit’ after a short time, many investors were unable to… ‘change their lives’ for one reason: Unable to sell .

SQUID has experienced extremely fast growth in value, with an increase of up to 45000% (450x) in just a short time,

” We have received many reports that users are unable to sell this token on PancakeSwap. Please use caution when trading “, Coinmarketcap warned users about the SQUID coin. While Coinmarketcap doesn’t specify why many of these investors are unable to sell SQUIDs, the token’s white paper itself mentions that SQUID “integrates an anti-dumping mechanism” to prevent investors from selling SQUIDs. sell off its investment assets if certain conditions are not met.

In addition, SQUID’s white paper also states that presale participants (with a very favorable purchase price) will not be able to sell SQUIDs for the next 3 years. This means that many investors have to wait until October 20, 2024 to be able to sell SQUID coins.

Top growth but signs of a scam?

In the context of SQUID’s amazing growth, the news that users cannot sell this token has raised many doubts from the crypto community. Accordingly, many investors have assumed that SQUID could be a scam.

Accordingly, a Twitter user named Crypto Tyrion discovered the identity of the founding team of SQUID to be extremely shady. These people don’t even have LinkedIn accounts. Normally, the profile on LinkedIN allows investors to ‘scan’ the background of the development team, thereby assessing the credibility of the project. Also according to Crypto Tyrion, the team behind SQUID also blocked comments on Twitter.

“Pull Rug 100%,” Crypto Tyrion asserts. In the cryptocurrency market, Rug Pull is a term that refers to the act of withdrawing all investors’ capital and running 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 the token.

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.

Price chart of SQUID coin. Source: Coinmarketcap

Notably, cryptocurrency tracking website CoinGecko bluntly warned users to stay away from SQUIDs.

“This token doesn’t meet our listing criteria, so it won’t be listed on CoinGecko. It’s most likely a scam,” CoinGecko co-founder Bobby Ong told Cointelegraph. He also emphasized that CoinGecko is not a partner of the Squid Game token, as mentioned on their website: “This is certainly not true and we are neither a partner nor related to Squid Game. “.

Netflix itself also asserts that it is not related to SQUID and requires users to be absolutely careful when investing in this token.

Meanwhile, a warning article published by Coinmarketcap on October 29 emphasized that the rapid growth of SQUIDs may lead to a situation where it is difficult for players to play the game Play-to-Earn to meet the requirements. hold at least a certain amount of tokens. For example, in the final level, players who want to participate are required to hold a minimum of 15000 SQUID tokens, which is more than 525,000 USD at the time of writing – a number that few investors can afford.

Refer to CoinTelegrapgh