Crypto exchangeBinancehas announced that it is investigating SQUID , the Squid Game - theme cryptocurrency , and will turn over whatever information it uncovers to the appropriate practice of law enforcement agency .
The tidings comes shortly after the relic have a meteoric rising slope and swift marketplace crash that saw investor lose jillion of dollars — a surefire star sign that the whole affair was a giant fraud .
“ Our security squad has launched an investigation – as a gesture of good will – and is exploring options to support the community , ” pronounce a Binance voice , when reached for remark by Gizmodo . They added that they would be “ blacklist addresses to prevent withdrawal method from Binance account linked to the scam and deploying blockchain analytics to identify the bad actors . ”
Photo: MOHD RASFAN / AFP (Getty Images)
“ The Binance Investigations Team will be providing their findings to law enforcement in the appropriate legal power , ” they said .
SQUID set in motion less than two weeks ago and quickly drew Brobdingnagian interest — skyrocketingover 2,000%in market time value in a issue of day . The token is , of course , based on thehit Netflix show , which is pose in South Korea and postulate a sadistic “ battle royale ” wherein debt - ridden participants play deadly kid ’ games for a opportunity to win billions of won ( Korea ’s currency ) .
The coin ’s protocol was build on the Binance Smart Chain ( BSC ) and was found by unknown developers who promoted it by order out a poorly write “ livid newspaper ” as well as a constellation of social media accounts designed to agitate the coin .
About a hebdomad ago , Gizmodopointed out thatSQUID was apparently some sort of scam . The fact that investors could put money into the coin but could n’t get any money out again was the most obvious sign of shadowiness . A few Clarence Shepard Day Jr. later , the whole thing collapsed in what appeared to bea classic “ rug pull”—a type ofexit scamwherein developer of a crypto project will suddenly abandon it and elope with investor ’ money .
The coin hit a market zenith of some $ 2,860 on Monday , then subsequently plummeted to zero . Afterward , several of the coin ’s societal media account go dead and the developer put outa statementon Telegram claim they were abuse back from the project . They seem to havemade off withsome $ 3.4 million in investor funds .
passably appropriate that a coin named after a show about the ill of uncurbed capitalism turns out to be a cash - guzzling scam . The collapse reportedly led to gargantuan losses for investor — including one hombre who allegedlylost his $ 28,000 life savings .
https://twitter.com/embed/status/1455209172908351501
CoinDesk originally reportsthat Binance had decided to inquire SQUID . Representatives for the crypto exchange also told Gizmodo that its users should be untrusting of projects that are new and “ high - jeopardy . ”
“ These types of scam task have become all too vulgar in the DeFi space as wondering crypto investors seeking the next ‘ moon snapshot ’ are prompt to invest in project without doing the appropriate due industry , ” the Binance interpreter said . “ Speculators seek potentially unrealistic , high - risk “ lambo ” or “ moon shooter ” chance should be wary of the hazard of investing in new or unverified asset , whether in crypto or the security measures markets . ”
In what seems like a potential metaphor for cryptocurrency writ large , the fact that SQUID has crashed and is now visibly being investigated as fraud has not deterred drove chisel of people from wanting to invest in it . Newsweek reportsthat , as of Thursday morning , people were still furiously Googling how to buy the coin , even though it ’s not clear there ’s anything leave to invest in . Bafflingly , the cryptocurrency market indexCoinMarketCapshows the economic value of the Squid Game coin has surged by 664 % while warn that users ca n’t sell it and it ’s an obvious scam .
CryptocurrencyNetflixTechnology
Daily Newsletter
Get the good tech , science , and culture news in your inbox daily .
News from the future tense , render to your present tense .
Please select your desired newssheet and put in your e-mail to upgrade your inbox .
You May Also Like
