Key Takeaways
- The Squid Sport venture’s SQUID token has misplaced 99.99% of its worth after a rug pull.
- The crypto venture gained reputation after leveraging the identify of this yr’s hottest Netflix collection.
- The staff has deleted its official web site and made off with just below $12 million.
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The Binance Sensible Chain venture has plummeted to nearly zero within the newest DeFi rug pull on traders.
Traders Scammed by Squid Sport Token
Squid Sport, a Binance Sensible Chain venture impressed by the hit Netflix present of the identical identify, has crashed. The venture’s personal staff brought about the crash by eradicating nearly all the liquidity from its swimming pools on decentralized exchanges.
The venture launched solely final week and gained traction by leveraging the recognition of the Netflix present Squid Sport. The venture’s founders, whose identities are unknown, launched a token known as SQUID on Binance Sensible Chain. The token was that can be purchased on the decentralized marketplaces PancakeSwap and DODO. It rallied over 300,000% in lower than per week, however a number of indicators hinted that it could possibly be a rip-off.
Squid Sport launched a interval of mania for so-called “meme cash,” with a number of dog-themed tokens like Shiba Inu and Floki Inu additionally rallying in the identical week. Although the venture had no official connection to the Netflix collection, it caught the eye of many mainstream media shops attributable to its theme, which probably acted as a catalyst for the token’s rise.
In line with data from CoinMarketCap, SQUID traded at $0.012 on Oct. 26 and briefly hit an all-time excessive of $2,856 at present.
The acute growth in SQUID’s worth was helped in no small half by the venture’s “anti-dump mechanism,” which was connected to the SQUID token’s sensible contract. This mechanism allowed traders to purchase tokens however prevented them from promoting.
Earlier at present, the staff bought the circulating provide of SQUID tokens via PancakeSwap and DODO, main the value to say no by greater than 99.99%. Following the incident, the venture’s official web site went down, whereas Twitter restricted its account attributable to “uncommon exercise.”
In a Telegram update, the staff claimed that somebody was “making an attempt to hack” their Twitter account in addition to their token’s sensible contract. It then introduced its departure from the venture. A message learn:
“Squid Sport Dev doesn’t wish to proceed working the venture as we’re depressed from the scammers and are overwhelmed with stress.”
Onlookers within the crypto group have reached the conclusion that the staff executed a rug pull, duping traders into shopping for the token then eradicating all the liquidity by promoting it on the open market. The staff made just below $12 million from the sale.
The incident sheds mild on how hype can drive customers to spend money on doubtful cryptocurrency initiatives with out exercising warning or due diligence. This specific venture used Squid Sport’s success to dupe traders, and plenty of ignored its “anti-dump mechanism” regardless that it was disclosed within the whitepaper.
Squid Sport joins a protracted record of different notable exit scams on Binance Sensible Chain and different blockchains. TurtleDex, Luna Yield, and PolyWhale are just a few examples of crypto initiatives which have met an identical destiny in current months.
