SQUID, a new coin inspired by the blockbuster Netflix series, Squid Game, has recorded a 45,000% gain just a few days after its launch earlier this week, but its investors have been unable to sell off their assets.
In response to the development, major crypto tracking website CoinMarketCap (CMC) has left a warning to SQUID token investors on its website.
We have received multiple reports that the users are not able to sell this token in PancakeSwap. Please exercise caution while trading.
According to CMC, PancakeSwap is the only platform that SQUID has been listed. The token currently trades at $5.71 and is among the top gainers on CoinMarketCap, with a daily trading volume of $7 million.
Amid the burgeoning status of SQUID plus reports emanating about users’ inability to sell the token, the crypto community is beginning to have suspicions that the token is a scam.
A Twitter user (Crypto Tyrion) noticed that the founders of SQUID mentioned on its website are not registered on major professional network LinkedIn. He further opined that it is a “100% rug pull,” based on the fact that the Squid Game token blocked Twitter comments while being inactive on Telegram and Discord channels.
Other observers also highlighted apparent issues in the Squid Game token’s whitepaper, such as poor grammar, spelling errors, and claims that are somewhat “impossible to verify.”
Popular scam check source, Scamadviser.com, rated the token as bogus with a trust score of 45 out of 100.
Meanwhile, CMC issued a statement suggesting that SQUID’s bullish rally may imply that playing the Squid Game as described in the project’s whitepaper may be unaffordable for most participants due to the holding requirements of the token.
CoinGecko who is the major rival of CMC has been quiet on the SQUID subject so far, and according to its co-founder Bobby Ong, "this token did not meet our listing criteria hence it will not be listed on CoinGecko. It's most likely a scam."
He also stressed that CoinGecko is not an official partner of the token contrary to information on the token’s website.
This is most certainly not true and we are not a partner nor are we affiliated with Squid Game.
The tokens whitepaper read that the “liquidity of SQUID will be locked for three years on DxSale which prevents any unseen and immediate changes to SQUID liquidity pool. Unlock date is Oct 20th, 2024,” and some media outlets like CNBC have reported that the Squid Game whitepaper talked of an “anti-dumping technology” which restricts people from selling their coins.