Do you remember the SQUID Game Token rugpull?
In 2021 a significant fraudulent event took place in the world of cryptocurrency. Inspired by the popular South Korean Netflix series Squid Game, this cryptocurrency, known as $SQUID (Squid Coin), promised investors an opportunity to play and earn an through “upcoming fan-made online game” inspired by Squid Game. However, it quickly unraveled, leaving investors defrauded of millions of dollars
Key Points
- The Squid Game rugpull is a notorious cryptocurrency scam that occurred on November 1, 2021.
- The SQUID coin, inspired by the Netflix series “Squid Game,” surged from under 1 cent to over $2,800 in just a few days before crashing to near zero.
- The developers stole approximately $3.3 million, impacting over 43,000 investors, with no reports of their arrest as of 2023.
- This incident highlights the risks of meme coins and the importance of thorough research before investing.
Event and Context
The Squid Game rugpull involved the SQUID coin, launched on October 26, 2021, capitalizing on the popularity of the Netflix series “Squid Game.” The coin’s price skyrocketed due to public excitement, but just days later, on November 1, 2021, it plummeted to near zero, leaving many investors with significant losses.
Impact and Consequences
Research indicates that over 43,000 investors were affected, with total losses estimated at around $3.3 million. Binance, the largest exchange, investigated the incident, but to date, there is no information on the scammers being apprehended.
Lessons Learned
This event serves as a stark warning about the risks of rugpulls in the crypto world, emphasizing the need to verify project teams and be cautious of projects promising unrealistic returns.
Detailed Report
The Squid Game rugpull is one of the most infamous scams in cryptocurrency history, occurring on November 1, 2021. Below is a detailed analysis based on information from various articles and forums, including The Washington Post, Cryptopotato, TotalKrypto, Fast Company, CBS News, and Reddit, to provide a comprehensive overview of the event.
Context and Event
The SQUID coin was launched on October 26, 2021, inspired by the wildly popular Netflix series “Squid Game.” The coin’s price surged from under 1 cent to over $2,800 in just a few days, reaching a peak on November 1, 2021, before crashing to near zero within seconds. This collapse was confirmed by multiple sources, such as The Washington Post and Fast Company, with the peak price recorded at $2,861.80 according to CoinMarketCap.
Per CBS News, the coin was traded on PancakeSwap, and at launch, its price was just $0.01 per token. The rapid price surge attracted over 43,000 investors, as recorded on BscScan ([invalid URL, not cited]). However, early red flags were noted, such as the project’s website containing numerous spelling errors and a flawed whitepaper, as mentioned on Reddit.
Execution of the Scam
The rugpull was executed when the anonymous developers sold off their tokens and withdrew all liquidity, estimated at around $3.3 million, according to The Washington Post and Fast Company. This transaction was recorded on the blockchain, with a specific example at [invalid URL, not cited]. Afterward, they erased all traces, including the project’s website and social media accounts, such as Twitter (over 57,000 followers, restricted due to “unusual activity”) and Telegram (over 71,000 subscribers).
Fast Company and TotalKrypto reported that the developers posted on Telegram claiming the project was hacked and that they “did not want to continue due to pressure from scammers,” but this was widely regarded as a fabricated excuse to cover their actions. Reddit also highlighted that the whitepaper contained serious flaws, such as references to an “anti-dump” mechanism similar to Bitcoin and a requirement for “Marbles” to sell SQUID, without explaining how to obtain Marbles, a clear sign of a scam.
Impact and Consequences
The event affected over 43,000 investors, with total losses estimated at around $3.3 million, as reported by Gizmodo and other sources. CBS News provided broader context, noting that total crypto scam losses from January to July 2021 amounted to $113 million, according to a CipherTrace report.
Binance, the largest exchange, investigated the incident, as mentioned in a Cryptopotato article, with its intelligence team analyzing the blockchain to provide information to authorities. However, a Reddit post from 2023 noted that the scammers were tracked but not arrested, and there is no updated information on fund recovery for investors.
Developments Post-Event
Some sources, such as BeInCrypto, mentioned the possibility of a SQUID2 token being launched with the announcement of Season 2 of “Squid Game,” but no detailed information is available. Reddit also noted that the event remains one of the fastest rugpulls in crypto history, with the price dropping from $3,100 to zero in seconds, captured live on Twitch ([invalid URL, not cited]).
Lessons and Significance
The Squid Game rugpull is a cautionary tale about the dangers of cryptocurrency scams, particularly meme coins tied to pop culture trends. J.P. Richardson, CEO of Exodus, quoted in CBS News, advised investors to conduct their own research and verify the team behind a project. Reddit also emphasized that many investors fell victim due to not “DYOR” (Do Your Own Research), lured by promises of quick profits from a play-to-earn game.
Summary Table
Below is a table summarizing key details from the sources:
