While cryptocurrencies present enormous opportunities to multiply one’s wealth, the space is also rife with scams. latest came in the form of the Squid Game (SQUID) token, which abruptly lost 99.9999% of its value this morning. More than $ 2 billion of the token value of the buyers was effectively set ablaze, leaving the founders with more than $ 2 million in profits.

Rise and Fall of the «Squid Game» Token

As deployed on CoinMarketCap, the token experienced hyperbolic growth shortly after its inception last week. While only worth a penny at launch, the value of each token rose to $ 4.42 in just three days. Major media outlets including BBC and CNBC reported on this, giving it greater exposure. Inspired by the hit Netflix horror show “Squid Game,” it made sense for the token to gain popularity and attention.

His promotion was not over, either. Prices jumped to $ 12 on October 29 and up to $ 38 on Halloween. This marked a 300,000% increase in just one week.

However, this bomb was not driven simply by the popularity of the market, but rather by a suspicious feature of the token. According to SQUID’s whitepaper, the token featured a “liquidity lock” that prevented buyers from selling it on the market for three years. This immediately drew security from and from SQUID holders who were unable to cash in on their earnings. price of the token also reflected this characteristic, as it almost never decreased during the week. In other words, there was only buying pressure and no selling pressure.

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This feature would prove to be the buyer’s undoing this morning as they watched their token value collapse helplessly. token suspiciously spiked to nearly $ 3,000 before crashing completely to just hundredths of a penny at 5:40 am EST. This came after the founders abruptly left the project, claiming they had been ‘hacked’ and were now ‘depressed’.

Signs of a scam

“Squid Game” tile reeked of foul play from the start. To begin with, the founders of the tokens were completely anonymous. Although its website left a “team” on display, Google did not show results for the corresponding names of any members or social media profiles.

Additionally, the company’s social media, website, and whitepaper were riddled with spelling errors. However, this was the only obvious sign that the project was not official. team gave no further indication that they were not affiliated with the actual Netflix show.

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