Binance is investigating the SQUID token, a token based on the Squid Game TV series. The exchange might place wallet addresses linked to token developers in a black list.
The cryptocurrency exchange Binance is now investigating the blocking of the SQUID token and describes it as a scam. A company spokesperson confirmed the news to the CoinDesk medium.
Binance is now seeking suitable options to help victims who purchased this token based on the popular Netflix series “The Squid Game” (but without any legal relationship with it or endorsement of the use of the name). The asset will get blacklisted with the addresses liked to the developers, and a Blockchain analysis gets implemented to identify the bad actors.
This exchange said it would also bring its discoveries to law enforcement officials in the relevant jurisdiction.
SQUID on Binance Smart Chain
The play-to-win SQUID protocol has its roots in Binance Smart Chain (BSC), but Binance clarified that BSC is an open-source environment, and therefore, the company does not track projects created on the network.
The spokesperson highlighted that these fraudulent projects have become all too common in the DeFi environment. Many speculative crypto investors are seeking the next opportunity rush to invest in projects without conducting due diligence.
The price of the SQUID token crumbled down from over USD 2,500 to zero this November 1, and its developers left the project. The token developers might be using Tornado Cash to hide their tracks, according to Binance.
In parallel to this news, the SQUID token recently started to skyrocket in price. According to CoinMarketCap, the token began to journey to a high peak and reached a price around 289%; A price considerably higher than some days ago.
The volume of transactions has also skyrocketed and reached a high peak. At least 94 million dollars in SQUID passed from hands in the last 24 hours. However, the news is not for investors to get too excited about it. The current price is still low; it is USD 0.07, as seen far from another price it managed to reach during the week.
SQUID Project Previously Crashed
The price crash came after Twitter flagged accounts allegedly associated with the SQUID token as suspicious sites, including the original profile with more than 70,000 followers. After this account met its restrictions, the Squid Game token developers attempted to lead other profiles. All of these profiles got subsequently closed as well.
The measures also coincided with what appears to be the closure of the project’s official website. The official page, which had the lead of SquidGame.cash, simply vanished from the network, as did the presence of the SQUID team on other social media.
The token’s price drop also emerged when the cryptocurrency project’s developer team left a curious message on their official Telegram channel suggesting that they abandoned the project.
By: Jenson Nuñez
