Following a mind-blowing price surge, the Squid Game (SQUID) token plummeted over 99% shortly after Twitter flagged its “official” accounts on the social media platform as suspicious.
According to data on CoinMarketCap (CMC), the SQUID token experienced its first downward move on Monday, erasing its entire gains from as much as $2,861 and dropping below $1 in a matter of minutes.
At the time of writing, SQUID is trading at $0.0054, down about 99% over the past 24 hours with a trading volume of $13 million.
According to CMC, 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 comes shortly after Twitter flagged accounts reportedly associated with the SQUID token as suspicious, including the original account, which has over 70,000 subscribers. After this account was restricted, the Squid Game token developers attempted running other accounts, which were also subsequently closed.
As previously reported by Cointelegraph, the crypto community has been suspecting the SQUID token of being a scam from the very beginning due to its apparently fake founders and blocked comments on Twitter. On Friday, CoinGecko co-founder Bobby Ong said that the token is “most likely a scam,” noting that the firm did not list it because it didn’t meet their listing criteria. At the time, the token was trading around $5.
Multiple warnings in the crypto community did not prevent a staggering rally of the token, with its price seeing astronomical gains, reaching $90 as of Monday, and then hitting over $2,000 in several minutes.
Major global publications like CNBC emphasized that the SQUID token was implementing “anti-dumping technology,” which was preventing holders from selling the token, without noting that the project could be a scam.
The Squid Game token’s developers did not respond to Cointelegraph’s requests for comment. PancakeSwap, a decentralized exchange and the only market for trading the token, did not reply to Cointelegraph following a press inquiry on Friday.
Squid Game (SQUID) crypto gains 253x in three days amid investor frenzy
- The SQUID crypto touched an all-time high of $3.30 today gaining 25200 percent in three days.
- Some users reported that they were unable to sell their SQUID tokens on decentralized exchange PancakeSwap.
Squid Game is creating major waves not only on Netflix but also in the crypto space. The hit Korean TV series has now become a worldwide sensation and now the SQUID crypto is gaining major traction. Over the last three days, the price of the SQUID crypto has multiplied 253x or we can say a staggering 25200 percent.
As of press time, SQUID is trading at 328 percent up at a price of $3.30 and 24 hours trading volumes hitting 5.8 million. SQUID is a play-to-earn cryptocurrency wherein people buy tokens in online games to earn more crypto. Users can further exchange the SQUID tokens for fiat or other cryptocurrencies.
The Korean Netflix death-game drama has become a major sensation and the streaming platform’s most widely-watched show ever. The SQUID crypto began its pre-sale earlier on October 20 with its whitepaper claiming that it sold out in a record time.
The buyers of SQUID will be basically online gamers looking to play an online game of the program starting this November. As per the SQUID whitepaper, developers will get 10 percent of the entry fee while the rest 90 percent will go to the game’s winner. The whitepaper notes:
The more people join, the larger reward pool will be (sic). More importantly, we do not provide deadly consequences apparently!
The Squid game rules
The individual rounds for the Squid games will have some costs to join. For example, playing Round 1 – Red Light, Green Light – will cost the player 456 SQUID. As the gamers progress up to six rounds, it will get more expensive along the way. Interestingly, certain rounds will also require users to purchase custom-made NFTs available on the company’s website. Speaking to the BBC, Cornell University economist Eswar Prasad said:
This cryptocurrency joins a long and growing list of digital coins and tokens that piggyback on random memes or cultural phenomena. Remarkably, many such coins rapidly catch investors’ fancy, leading to wildly inflated valuations. Naïve retail investors who get caught up in such speculative frenzies face the risk of substantial losses.
However, as per the recent notice from CoinMarketCap, users were unable to sell their SQUID tokens on PancakeSwap. It also asked users to exercise caution while trading. Also, it is unclear why users’ aren’t able to trade SQUID tokens today.
But the SQUID whitepaper mentions something called the anti-dumping technology that prevents the sale of the coins in case certain conditions aren’t met.
The SQUID crypto joins the list of other meme cryptocurrencies that have posed a crazy rally. Along with SQUID crypto, another meme crypto rallying today is Floki Inu (FLOKI). The rally in FLOKI comes amid aggressive marketing by its promoters.