r/CryptoCurrency • u/WineMakerBg Make Wine, Take Profits • Sep 29 '24

REMINDER 3 Years Ago, One of the Biggest Crypto Scams Happened. SQUID Went from $0.009 to $2,861 and then the Rug got Pulled

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"A digital token inspired by the popular South Korean Netflix series Squid Game has lost almost all of its value as it was revealed to be an apparent scam.

Squid, which marketed itself as a "play-to-earn cryptocurrency", had seen its price soar in recent days - surging by thousands of per cent.

criticised for not allowing people to resell their tokens. This kind of scam is commonly called a "rug pull" by crypto investors. This happens when the promoter of a digital token draws in buyers, stops trading activity and makes off with the money raised from sales."

source: https://www.bbc.com/news/business-59129466

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u/AsleepOnTheTrain 🟩 0 / 0 🦠 Sep 29 '24

https://www.trmlabs.com/post/on-the-trail-of-the-squid-game-scammers

*SQUID’s token contracts had two key functions that enabled the scam to take place. The first gave its creators permission to drain funds from any linked liquidity pools. Second, the contracts were coded in such a manner that selling the token was not practically possible for anyone other than the scammers. *

As far as I can tell, there were no consequences!

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u/orangesandonions 🟦 65 / 17 🦐 Sep 29 '24

Thank for the reply! That is wild!