How did Squid Game rug pull work?

The term “rug pull” refers to unknowing investors “having the rug pulled from underneath them” by the creators or developers of a cryptocurrency . This can take a number of forms, but the most common type of rug pull is the liquidity scam, which most commonly takes place on decentralised exchanges (DEXs).

The cryptocurrency Squid Game (SQUID) immensely collapsed in price. The developers appear to have created a scam, cashing in on more than $3 million . The creators of the Squid Game crypto are sitting pretty following a “rug pull” scam that took profits from tricked investors.10 Kas 2021

Rug pull: Creators drained liquidity from coin As per the reports, the anonymous creators of Squid Game coin sold their entire holdings rapidly on Sunday, bringing down the coin’s value to $0, a phenomenon described as “Rug Pull” in financial parlance.

The collapse of the Turkish cryptocurrency exchange Thodex is a prime example of a rug pull in crypto. The $2 billion dollar theft was one of the biggest crypto rug pulls of 2021. It is also one of the largest centralized finance (CeFi) exit scams in history.

A digital token inspired by the popular South Korean Netflix series Squid Game has lost almost all of its value as it was revealed to be an apparent scam . Squid, which marketed itself as a “play-to-earn cryptocurrency”, had seen its price soar in recent days – surging by thousands of per cent.