Is it a Squid Game Coin scam, or are the rules just as convoluted as the game itself? A new crypto token inspired by popular Netflix show Squid Game racked up a massive 45,000% growth in a few days after its launch earlier this week, but multiple investors are reporting they are unable to sell the token, with many calling SQUID a total scam.
Crypto holders call Squid Game Coin Scam Token
The cryptocurrency community has been accusing the Squid Game (SQUID) token of being a scam amid reports that some investors are not able to withdraw the token on major decentralized exchange Pancakeswap.
“We have received multiple reports that the users are not able to sell this token in Pancakeswap. Please exercise caution while trading,” major crypto tracking website CoinMarketCap (CMC) noted in a warning about the SQUID token on its website.
According to CMC, Pancakeswap is the only market available for trading SQUID at the time of writing. The token is trading at $5.71 and is among the top gainers on CMC with a daily trading volume of $7 million.
Amid SQUID’s mind-blowing growth coupled with reports on the inability to sell the token, some enthusiasts in the crypto community have alleged that the new coin is likely to be a scam scheme.
Twitter user Crypto Tyrion observed that Squid Game token founders, which are mentioned on its website, are not on major professional network LinkedIn. He also stressed that Squid Game token was blocking tweet comments while not having Telegram and Discord channels. “100% rug pull,” Crypto Tyrion said.
Some observers also pointed out apparent issues in the Squid Game token’s white paper, including poor grammar, spelling errors and claims that are “impossible to verify.” According to popular scam check source Scamadviser.com, the Squid Game token’s website is suspicious with a trust score of 45 out of 100.
The idea of the Squid Game token is inspired by Netflix’s eponymous show where players risk their lives to play deadly games in hope of a lifechanging sum of money grand prize. The token is said to allow players to participate in six online games, with the goal of winning prize money. Although token holders aren’t expected to be brutally murdered by holding the token, not being able to get out after buying in just looks like a complete and utter scam.
On Friday, CMC issued a post noting that SQUID’s rally may mean that playing the Squid Game described in the project’s white paper may be unaffordable for most participants due to SQUID holdings requirements. As such, the sixth and final game, would require players to hold 15,000 SQUID, which is over $80,000 at the time of writing.
Publications like CNBC reported that the Squid Game white paper mentioned “anti-dumping technology” that prevents people from selling their coins. If so, this is a little bit like the Squid Game itself, where players are not allowed to exit the game (unless a majority of them elects to do so, which spoiler alert, happens in the first episode, but 93% of them elect to return to play the game out).
“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,” the white paper reads.