The world’s largest exchange, Binance, conducted an investigation into the Squid Game Token a few days ago to track funds related to the epic 45,000% Pump & Dump.
A game token based on Binance Smart Chain SQUID is suspected of being an exit scam or rug pull. Even so, some extremely bullish users are still buying tokens in hopes of a revival as the price has increased sixfold in the past 24 hours.
Binance is trying to help those who bought tokens and suffered losses during the crash. The exchange has blacklisted addresses associated with developers and uses blockchain analysis to identify bad players. She hopes to regain lost funds, although that seems relatively far-fetched.
Binance found that the developers used a blender called Tornado Cash to disguise their transactions.
“Our security team is currently tracking these funds. These types of scam projects have become all too common in the DeFi space as speculative crypto investors are quick to invest in projects without doing any research in search of the next “moon shot”.
The largest exchange intends to share its findings with law enforcement agencies.
On October 29th, Bitcoin magazine reported that holders were unable to sell tokens after SQUID’s price rose more than 45,000%. Industry watchers warn that the project is full of signs of exit fraud, such as closed social media accounts, anonymous developers, and a suspicious white paper. The mainstream media covered the Squid Game, which triggered more FOMO.
Several copies of the token and its social media channel stalled for a few days, which prompted the developers to post on the Telegram channel ‘Squid Game BSC’ that they were “not doing the project out of boredom with the crooks and being overwhelmed wanted to continue “emphasize.”
On Nov. 1, Twitter flagged the project’s account as suspicious, and a 99% drop in token price wiped out the rally of up to $ 2,861, pushing the price close to zero.
The SQUID price fell to near 0. Source: TradingView
CoinMarketCap owned by Binance is now displaying a SQUID alert on the website:
“There is increasing evidence that this project is suspect. Please do your own research and act with extreme caution. Although this project is clearly inspired by the Netflix show of the same name, it is NOT linked to the official IP. “
At the time of writing, SQUID is trading 600% at $ 0.038 for the past 24 hours, according to CMC.
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According to Cointelegraph