- Binance has launched an investigation into the $3.3 million Squid Game rug pull that took place earlier this week.
- Bullish investors are now buying the token, sending it up 1000 percent in the last 24 hours with hopes that Binance’s actions will re-establish the token.
Two days ago, the Binance Chain-based Squid Game token $SQUID received heavy criticism after its developers took off with $3.3 million.
In a span of events, however, the token has now surged a whole 1000 percent in the past 24 hours. Binance announced that it would launch an inquiry into the ‘alleged’ exit scam or rug pull. This news heightened interest in buyers, who still hold on to hope that the platform will somehow resurrect.
Notably, the play-to-earn game was developed as one of the many blockchain games drawing inspiration from the popular South Korean Netflix show Squid Game. The project has only been online for about a week, a period through which it fast-tracked the ranks of popularity. The SQUID token skyrocketed over 300,000 percent from $0.01 to trade at $2,861 three days after launching.
Squid Game meteoric and questionable rally
On Tuesday, the token was virtually worth less than $0, with developers claiming an “overwhelming” scammers’ attack. All the game’s online platforms have been dark ever since. As CNF reported, some members of the crypto community flagged the project as a fake even before the rug pull due to the inability to sell tokens. More so, Squid Game’s whitepaper was marred with several grammar errors. French blockchain startup Air Next that claimed a billion euros in the capital was ousted late last month after a spelling error that revealed the rest of its forged documents.
Now, 40,000 investors still have their SQUID coins, and a number of them are optimistic that Binance’s actions will turn the setback into a comeback.
An intelligence team from the leading exchange has been tasked with auditing the blockchain. Information gathered will be handed over to the authorities in the hopes of getting hold of the bad actors.
Moreover, the exchange is exploring ways to be of assistance to investors that lost out as the token was nosedived. But even though the firm hopes to recover the 6,139 BNB stolen, the odds they do remain slim, according to some crypto experts.
Squid Game developers, as Binance states, likely used the coin mixer Tornado Cash to obfuscate their transactions. The exchange is blacklisting addresses associated with the developers and utilizing blockchain analytics to identify them.
For the larger community, nonetheless, the week-long scam has instilled and re-ignited fear in some crypto projects. One Shiba Inu (SHIB) analyst thinks the scam contributed to the recent 10 percent drop in SHIB tokens.
And as far as crypto-related scams go, over 6,000 Coinbase customers recently became victims of a phishing scam. The perpetrator(s) sent out letters impersonating the exchange and asking its users to send their login credentials.