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Is The Squid Game Crash The Biggest Pump And Dump In Crypto History?

Is The Squid Game Crash The Biggest Pump And Dump In Crypto History?

Last updated 11th Aug 2022
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On Monday morning, the price of SQUID experienced a dramatic crash. The token fell by more than 100% in the space of just 5 minutes, dropping from $2856 to $0.0008. Many have questioned whether the drop is the biggest rug pull in crypto history. 

The dramatic plunge follows a period of highs, in which the token looked promising to investors. Just yesterday, it was reported that Squid had increased by 45,000% and was trading at $4.5. 

Now, it seems that the Squid hype is no more. Developers that were behind the crypto project have reportedly left after the price crashed to nearly zero. After the crash, the project’s Twitter and Medium accounts were shut down, leaving investors largely in the dark. 

Is this the biggest pump and dump in crypto history? 

The dramatic SQUID price fluctuation occurred over just a matter of days and the price drop happened in just 5 minutes. The crash was the result of a pump and dump, in which the developers of the project supposedly ‘rug pulled’ from investors. A rug pull in crypto refers to a scam in which creators take off with investors’ funds. 

SQUID is not the only token to have scammed investors with a pump and dump. In the past, numerous tokens have taken the market by storm with false hype before suddenly falling due to a rug pull. 

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SaveTheChildren scam

In July, four members of the FaZe Clan participated in a pump and dump with a token called SaveTheChildren. The four pro gamers, along with a number of influencers, promoted the token to their large following. Once the price reached its peak, they started to sell off their tokens, making an estimated $30,000 each. During the ‘dump’ the coin fell by 60%. 

SafeTrade 

Another coin that left investors empty-handed was SafeTrade. When it was released, the coin was marketed as ‘rug-proof’ yet once people started to buy into the coin, the organisers sold all of their coins and left the price to fall. 

While SQUID is certainly not the first pump and dump scam to hit the market, it could well be the biggest. The token fell by over 100% and crashed in the shortest period to date. The SaveTheChildren crash occurred over the whole of June- a long time compared to SQUID. 

How to spot a pump and dump?

Unfortunately, pump and dump schemes are not illegal for cryptocurrencies. This means that scams occur regularly in the market. The easiest way to spot a pump and dump scheme is to look for unknown coins that suddenly surge in value. If a coin rises by more than 5% in less than five minutes, this could indicate a crypto scam

Another pump and dump clue are paid ads. If you see large ad campaigns about a smallcap coin across social media, this could be a sign of a pump taking place. If you notice these signs, it’s best to proceed with caution. 

Ruby Layram

Ruby Layram

Ruby is a writer for Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. Ruby has been a professional personal finance and investment writer for 2 years and is currently building her own portfolio of altcoins. She is currently studying Psychology at the University of Winchester, specialising in Statistical analysis.