Following a mind-blowing price surge, the Squid Game (SQUID) token plummeted over 99% shortly after Twitter flagged its “official” accounts on the social media platform as suspicious.
According to data on CoinMarketCap (CMC), the SQUID token experienced its first downward move on Monday, erasing its entire gains from as much as $2,861 and dropping below $1 in a matter of minutes.
At the time of writing, SQUID is trading at $0.0054, down about 99% over the past 24 hours with a trading volume of $13 million.
According to CMC, the SQUID token has a “self-reported” market capitalization of $2.8 million at the time of publication. “The CMC team has not verified the project’s market cap,” CMC’s warning reads. The token’s fully diluted market cap is $5 million, down over 99%.
The drop comes shortly after Twitter flagged accounts reportedly associated with the SQUID token as suspicious, including the original account, which has over 70,000 subscribers. After this account was restricted, the Squid Game token developers attempted running other accounts, which were also subsequently closed.
As previously reported by Cointelegraph, the crypto community has been suspecting the SQUID token of being a scam from the very beginning due to its apparently fake founders and blocked comments on Twitter. On Friday, CoinGecko co-founder Bobby Ong said that the token is “most likely a scam,” noting that the firm did not list it because it didn’t meet their listing criteria. At the time, the token was trading around $5.
Multiple warnings in the crypto community did not prevent a staggering rally of the token, with its price seeing astronomical gains, reaching $90 as of Monday, and then hitting over $2,000 in several minutes.
Major global publications like CNBC emphasized that the SQUID token was implementing “anti-dumping technology,” which was preventing holders from selling the token, without noting that the project could be a scam.
The Squid Game token’s developers did not respond to Cointelegraph’s requests for comment. PancakeSwap, a decentralized exchange and the only market for trading the token, did not reply to Cointelegraph following a press inquiry on Friday.