We’ve talked about the risk of rug pulls here before, basically when the creators of the project or individuals with very large percentages of the tokens sell everything at once and the price collapses. These tokens are usually fake projects, with no real intention of building anything other than a token with some advertising behind it. There are lots of ways these projects can look, like a dog coin that is built off a meme, but one blew up the morning of this newsletter. In the past couple of days, Squid Game Token (SQUID) was getting a lot of press, the token is playing off the popular Netflix show Squid Game. The token has gone from $0.02 to a high of $2,856 this morning. Stories have been written saying that users are unable to sell the token for days, which should be a massive red flag for any investor. As of writing this article, the price is down 99.99% to $0.002, with the developers walking away with a quick $15M.
Looking back at the Squid Games Token homepage, there were plenty of signs that this was a scam before it happened. Twitter user @asparagiii breaks down some of the questionable things on the site saying they have actual images from the show on their site (very doubtful those were licensed), they have random references to Elon Musk’s tweets, and their team doesn’t exist on LinkedIn. In fact, when you do a reverse Google image search for any of their team members, none of them seem to even exist.