After a staggering price increase, the Squid Game token (SQUID), plunged over 99% within minutes of Twitter’s flagging of its official accounts as suspicious.
According to CoinMarketCap (CMC) data, the SQUID token suffered its first downturn on Monday. It lost all its gains of $2,861 and dropped below $1 in just minutes.
SQUID trades at $0.0054 as of the writing of this article, down approximately 99% over the last 24 hours and with a volume of $13 Million.
CMC reports that the SQUID token’s market capitalization was $2.8 million as of the publication date. CMC warns that “the CMC team hasn’t verified the project’s marketplace cap.” Market cap for the token is now $5 million. This is a drop of over 99%.
SQUID all-time price chart. Source: CoinMarketCap
This drop follows Twitter’s flagging of accounts associated with the SQUID token suspiciously, including the original account which has more than 70,000 subscribers. The Squid Game token developers tried to run other accounts after the account was closed.
Cointelegraph previously reported that the crypto community suspected the SQUID token was a scam since its inception due to its fake founders, and the blocked comments on Twitter. Bobby Ong, CoinGecko’s co-founder, stated that the token was “most likely” a scam on Friday. He also noted that it wasn’t listed by the firm because it didn’t meet their listing criteria. The token was currently trading at $5.
Multiple warnings from the crypto community didn’t stop a dramatic rally in the token’s price, which reached $90 on Monday and then surpassed $2,000 within minutes.
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CNBC and other major global publications highlighted the fact that the SQUID token was using “anti-dumping technology,” which prevented holders from selling the token. However, they did not mention that the project might be fraudulent.
Cointelegraph did not reach out to the developers of the Squid Game token. After a Friday press inquiry, PancakeSwap (a decentralized exchange that allows trading of the token) did not respond to Cointelegraph’s request for comment.
A lot of my normie friends bought this $SQUID game token and couldn’t sell i (“anti-dump feature”) Now look what happened pic.twitter.com/wq5egYBKFa
— Friend of Peach (@WaymanCap November 1, 2021