One hundred percent crash in Viral Squid Game’s cryptocurrency minutes after the founders reportedly fled with $2.5 million
According to Forbes.com, Squid Game’s viral coin price fell sharply on Monday after reports emerged that the project’s anonymous founders had abandoned it and fled with investor funds. This serves as yet another cautionary tale for investors chasing the crypto market’s meteoric rise.
It is estimated that at 6 a.m. Eastern Daylight Time (EDT), the price of the so-called Squid Game token plummeted from over $2,861 to less than half a penny, erasing $6 billion from the market value.
Before the game’s widely publicised launch, users noticed unusual activity in their wallets, which led them to believe the token’s purported developers had abandoned the project and cashed out $2.5 million worth of binance coin tokens while concealing the transactions with a protocol called Tornado Cash.
On Monday morning, the Squid token website and social media accounts went down due to “some unusual activity,” according to Twitter.
CoinMarketCap warned on Friday that multiple users were reporting that they couldn’t sell their tokens to decentralised exchange PancakeSwap after the token rose sharply last week.
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However, despite being clearly inspired by the Netflix series, the project was “unlikely to be affiliated with the official [intellectual property],” according to the website, which also advised users to “do your own due diligence and exercise caution while trading! ”
The Squid token has soared by as much as 310,00% since its launch just one week ago, despite the fact that very little was known about the project or its founders. Despite the fact that the cryptocurrency’s website claimed its Squid Game-based online game would go live this month, users discovered several grammar and spelling errors in the project’s whitepaper (a standard practise in the cryptocurrency industry for detailing a token’s specifications), as well as the absence of social media profiles for any of the project’s purported founding members. The token went on presale earlier this month and was claimed to have sold out in “a second” by the whitepaper.
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