Squid, which marketed itself as a “play-to-earn cryptocurrency,” had seen its price soar in recent days – surging by thousands of percent. Following a massive price surge, the Squid Game token plummeted over 99% shortly after Twitter flagged its “official” accounts as suspicious on the social media platform last night. The digital token experienced its first downward move on Monday.
Squid token crashed to almost zero.
The price of the Squid game token fell from $2,856 to $0.00079 instantly as 70 million tokens were dumped on the market. According to CoinMarketCap, the SQUID token has a “self-reported” market capitalization of $2.8 million at the time of publication. “The CMC team has not verified the project’s market cap,” CMC’s warning reads. The token’s fully diluted market cap is $5 million, down over 99%. The drop came shortly after Twitter flagged accounts reportedly associated with the SQUID token as suspicious, including the original account with over 70,000 subscribers.
Squid token appears to be a highly engineered scam.
The digital token had a number of red flags that initially drew a healthy dose of skepticism. The project itself was themed after the hit Netflix show Squid Game, but with no apparent official approval or connection — despite a claim on its website that it was partnered with Netflix. It also claimed to have further partnerships, including NFT marketplace OpenSea, crypto tracking sites CoinMarketCap and CoinGecko, and Microsoft. Plus, a partnership with Binance Smart Chain (BSC), a decentralized blockchain (while the token did indeed run on BSC, that’s hardly a partnership). The biggest concern about the project, however, was that some users reported they couldn’t sell their tokens after buying them. There were several red flags about the dubious token as pointed out by this twitter user three days ago.