$SQUID, a cryptocurrency token inspired by the South Korean Netflix series Squid Game, soared by 83,000 % before unexpectedly collapsing on Monday in an alleged rug pull scam with investors losing $3.4 million.
A crypto coin called $SQUID was released on October 26 by an organization that had no connections to the show’s producers, and it skyrocketed in popularity. SQUID tokens were originally worth $0.0 when they were first introduced.
The price began to increase significantly on November 1, but a so-called “anti-dumping mechanism” prevented investors from selling SQUID. According to Threatpost, all it took to keep investors from selling was a simple piece of code.
All the rules of how a token can be bought and sold are contained in the smart contract code itself, since these tokens are traded on a decentralized ‘automatic market-maker’ contract.
Basically, it just needs an extra line of code in the transfer function to prohibit the swap from occurring in the ‘sell’ direction unless the transaction sender is the address controlling the contract (i.e. the developer who removed all the liquidity from the pool and absconded).
According to CoinMarketCap, the cryptocurrency surged as high as $2,681 and dropped to $0 within hours,