Binance investigates SQUID token for considering it a scam

Binance investigates SQUID token for considering it a scam

Binance investigates SQUID token for considering it a scam By Daily EditorBitcoin

Binance is investigating the SQUID token, based on the TV series The Squid Game. The exchange is considering blacklisting wallet addresses linked to token developers.

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The exchange of cryptocurrencies Binance is investigating token lock SQUID and considers it a scam, confirmed a company spokesperson to the medium CoinDesk.

Binance is exploring options to help victims who purchased this token based on the popular series of Netflix “The Squid Game” (but without any legal relationship with it or endorsement for the use of the name). It will be included in a “Blacklist with the addresses affiliated to the developers and the implementation of Blockchain analysis to identify the bad actors”the spokesman said.

This exchange said it will also provide its findings to law enforcement officials in the relevant jurisdiction.

SQUID on Binance Smart Chain

The protocol SQUID play-to-win is based on Binance Smart Chain (BSC), but Binance emphasized that BSC It is an open source ecosystem and therefore the company does not monitor the projects built on the network.

“These types of fraudulent projects have become all too common in the DeFi space, as speculative crypto investors looking for the next ‘lunar opportunity’ rush to invest in projects without conducting due diligence.The spokesman said.

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Price rises

DailyBitcoin He said that the price of SQUID token On November 1, it went from a price of over USD $ 2,500 to zero and its developers abandoned the project. Barron’s reported for the first time on the investigation. The token developers appear to be using Tornado cash to cover his tracks, he said Binance to Barron’s.

Paradoxically, parallel to this news, the SQUID token it started to spike in price today. As can be seen in CoinMarketCap, the token began to rise at midnight and now, at 8:15 a.m. New York time, it is priced 289% higher than yesterday at the same time. The volume of transactions has also skyrocketed, 94 million dollars in SQUID passed from hands in the last 24 hours. However, beware, the news is not for investors to be excited: The current price is still low: it is USD $ 0.07, as we see very far from the prices it had reached at the beginning of the week.

Sources: Coindesk, Coinmarketcap, file

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