A new token, Squid Game (SQUID) – inspired by the Netflix show of the same name – recorded 45,000% growth in a few days after its launch earlier this week, but many investors are reportedly unable to sell the token.
“We have received several reports that users are unable to sell this token at PancakeSwap. Please be careful while trading,” major crypto-tracking website CoinMarketCap noted in a SQUID token warning on its website.
According to CMC, PancakeSwap is the only market available for SQUID trading at the time of writing. The token is trading at $5.71 and is among the biggest gainers on CMC, with a daily trading volume of $7 million.
Amid the impressive growth of SQUID along with reports about the inability to sell the token, some crypto enthusiasts have claimed that the new currency is likely a scam scheme.
Twitter user Crypto Tyrion notes that the founders of the Squid Game token, who are mentioned on their website, are not on the main professional LinkedIn network. They also stressed that the Squid game code was blocking Twitter comments. “100% pull the rug out,” Crypto Tyrion said.
Closed Telegram group: ❌❌❌❌
Closed Dispute: ❌❌❌❌
Banned tweet comments: ❌❌❌❌
There is no founder of LinkedIn: ❌❌❌❌
CNBC article to pump: ❌❌❌❌
– Crypto Tyrion (Cryptotyrion) October 29 2021
Some observers have also pointed out obvious problems in the Squid game code white paper, including poor grammar, spelling errors, and claims that it is “impossible to verify”. According to popular scam-check source, SquidVisser, the Squid Game token site is questionable, with a confidence score of 45 out of 100.
The idea of the Squid game code is inspired by the show named Netflix where players risk their lives to play deadly games in the hope of getting big payouts. The token is said to allow players to participate in six online games, with the aim of winning cash prizes.
On Friday, CMC released a post indicating that the SQUID pool may mean that playing the Squid game described in the project’s white paper may not be within reach of most participants due to the requirements for SQUID collectibles. As such, the sixth and final game will require players to hold 15,000 squids, which is over $80,000 at the time of writing.
CMC’s main competitor, CoinGecko, has preferred to stay away from squid. “This token does not meet our listing criteria and therefore will not be listed on CoinGecko. It is likely a scam,” CoinGecko co-founder Bobby Ong told Cointelegraph. He also stressed that CoinGecko is not a Squid Game token partner, as stated on their site. Online: “This is definitely not true and we are not partners and not affiliated with Squid Game.”
Related: YouTube channels hacked and rebranded for live crypto scams
In its white paper, Squid game token is said to implement an “anti-dumping mechanism” that prevents investors from selling their coins in a manner similar to major cryptocurrencies such as Bitcoin (BTC). Specifically, users must hold so-called “marbles” tokens in order to sell a certain amount of SQUID, the white paper notes:
“If you have some marbles, you can sell a certain amount of squid at any time you want on PancakeSwap. After you sell some squid, these marbles will be burned in your wallet automatically.”
The white paper doesn’t provide much information about marbles other than “Getting marbles without using violence is the key to the Squid game.”
SQUID’s liquidity will be closed for three years on DxSale preventing any invisible and immediate changes to the SQUID liquidity pool. The unlock date is October 20, 2024,” as stated in the white paper.
Cointelegraph reached out through the contact information listed on the Squid Game website with additional inquiries but did not immediately receive a response.