Binance is investigating the SQUID Token; It’s Still up by 600%

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Key takeaways:

  • Binance is investigating the SQUID crypto token’s crash to see if funds were involved in the dramatic 45,000% pump and dump a few days ago.
  • Binance said it was tracing the transactions and will report its findings to “appropriate jurisdiction.”
  • Regardless of the Binance inquiry and debacle, the token is at a 600% increase.
  • Within days, many copies of the token and associated social media channel surfaced.
Binance Is Investigating The Squid Token

Binance, the world’s largest crypto exchange, has announced that it is looking into the Squid Game token issue to recover stolen assets and report its findings to the law authority.

Last week, SQUID, a “play-to-earn” token, soared more than 70,000% to $2,861 before falling to fractions of a penny on Monday. However, due to a lack of liquidity, token owners were unable to sell their tokens. In addition, the token has no formal ties to the popular Netflix show.

The SQUID token’s origins are unknown. The token’s creators remain unidentified. A Twitter account and a website linked to it have been deactivated.

According to the spokesperson, Binance is looking into measures to assist people who have been victimised, including “blacklisting addresses affiliated with the developers and deploying blockchain analytics to identify the bad actors.”

“These sorts of fraud initiatives have become all too frequent in the DeFi market, as speculative crypto investors looking for the next ‘moon shot’ are ready to participate in companies without performing adequate due diligence,” the spokesman added.

MoonShot Crypto is a unique kind of cryptocurrency. It’s referred to as a “deflationary, self-regenerating autonomous liquidity supplying protocol” in technical terms.

To hide their trails, the token’s creators appear to be leveraging Tornado Cash, a “coin mixer,” according to Binance. The exchange told Barron’s that “our security team is currently tracing those funds.”

The creators of Tornado Cash could not be reached for comment.

SQUID token up 600% today despite debacle

According to the exchange, the SQUID gaming token based on the Binance Smart Chain is suspected of being a rug pull or exit scam. Despite this, some highly enthusiastic users are still purchasing the token in the hopes of a comeback. Unfortunately, this has caused the price to have increased sixfold in the last 24 hours.

It was reported on October 29 that token holders were unable to promote after the value of SQUID increased by more than 45,000%. Closed social media accounts, faceless builders, and a questionable white paper, according to industry insiders, were all red signs at the time.

Within days, many clones of the token and its social media channel surfaced, and the project’s creators stated on the Telegram channel ‘Squid Game BSC’ that they “do not want to continue running the project as we are; depressed from the scammers and are overwhelmed with stress.”

By November 1, Twitter’s account had been flagged as suspicious, and the token’s value had crashed by 99%, wiping away advantageous features from as high as $2,861 in a drop to around $0.

The Binance-owned CoinMarketCap tracker now displays a warning on its page for SQUID:

“There is growing evidence that this project has rugged. Please do your due diligence and exercise extreme caution. While clearly inspired by the Netflix show of the same name, this project is NOT affiliated with the official IP.”

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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