Binance Is Investigating Squid Game Token, Considers It a Scam

Crypto alternate Binance is investigating the SQUID token crash and considers it a rip-off, a firm spokesperson confirmed to CoinDesk.

  • Binance is exploring choices to assist these harmed, together with “blacklisting addresses affiliated with the builders and deploying blockchain analytics to determine the dangerous actors,” the spokesperson mentioned.
  • Binance may also present their findings to regulation enforcement officers within the applicable jurisdiction.
  • The play-to-earn SQUID protocol is constructed on Binance Smart Chain (BSC), however Binance emphasised that BSC is an open-source ecosystem and so the corporate doesn’t have oversight over initiatives constructed on the community.
  • “These kinds of rip-off initiatives have develop into all too widespread within the DeFi area as speculative crypto traders searching for the following ‘moon shot’ are fast to put money into initiatives with out doing the suitable due diligence,” the spokesperson mentioned.
  • As reported earlier this week by CoinDesk, the worth of the SQUID token has crashed to just about zero and its builders have mentioned they’ve left the challenge.
  • Barron’s first reported on the investigation. The token’s builders look like utilizing Tornado Cash to cowl their tracks, Binance advised Barron’s.

Read extra: Play-to-Earn Squid Token Rockets 35,000% in 3 Days; Some Users Unable to Sell It

UPDATE (Nov. 3, 21:39 UTC): Updated to incorporate affirmation and statements from Binance.

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