The raging “play-to-earn cryptocurrency”, Squid, hit its peak and its rock bottom at the same time on November 1, dropping from $2861.80 to $0.0007926 in only 5 minutes.
The developers of Squid most likely took off with an estimated $ 3.38 million, leaving its 40,000 investors with nothing in their hands. Binance has currently opened an investigation on the situation with most calling the whole thing an apparent scam.
Explosive initial success based on Netflix’s # 1 squid game
It was no surprise that Squid appeared on October 9 that it would soon exceed its initial value of $ 0.01. The story was inspired by Squid Game, a Netflix dysphoria drama that tells the tale of 456 players playing brutal life or death games to win the final prize of 45.6 billion won.
Ranked number 1 in dozens of countries including the US, UK and South Korea, Squid Game has become the most successful Netflix show of all time, watched in 142 million homes, increasing the number of Netflix subscribers of 4.4 million.
Riding on the popularity of the show, in just 72 hours since its release, Squid’s worth rose to $4.42, increasing by 44,100%. The token was pitched on a BSC game to be won that looks like the TV show it was inspired by. Players had to pay an entry fee using Squid and would win Squid if they won the games they played.
After the crash, criticism came from all corners of the internet. Many in the community were extremely upset about losing money and almost all of the media claimed it was a scam. It seemed like the end of Squid once and for all.
400% miraculous comeback brings new community from the ashes
Like a miracle, Squid’s value is currently back at $0.3915, increasing more than 400% since its dip, with many expecting it to rise further. Investors are still hoping for a resurrection as, surprisingly, new investors begin to pour in. There is even a group of inflexible investors who believe in the return of Squid and buy in bulk.
“Squid is not over!” said a group of major Squid buyers in an interview. We asked why they still believed in Squid after all the dramatic changes. They all said this was just the start for Squid. Many also believed that empowering the community is what will make Squid different in the future.
“The rug pull has made Squid’s community become a de facto decentralized autonomous organization, which means power back to the user and a lesser chance of things crashing down again,” said a community member that traded in Squid even after its crash.
“More media coverage attracts even more attention and therefore a further increase in its value. This is why it started to increase again on November 3. Its DAO status makes Squid stand in the most unique position, practically an industry experiment. I’m not missing out on this” said another trader.
Steadfast support continues in the form of squid lists over dozens of exchanges
Squid is listed on numerous exchanges, including LBank, one of the major exchanges in the world which holds the largest collection of altcoins among the global CEXs. The listing of Squid on LBank caused quite a controversy in their community with some very upset about the listing and others expecting another surge in its value.
In an interview, a representative from LBank said: “Fraud of any kind is prohibited on LBank and should not be tolerated under any circumstances. It goes against our core values. However, we do believe in users’ freedom to trade. It’s inevitable that autonomous communities will seek value consensus within their group. The value of a project will ultimately be determined by the market. As for fraudsters, we believe that the law should serve them what they deserve.
Besides LBank, Squid has also been listed on CoinW, AOFEX, PancakeSwap，BKEX, Hoo and Dinosaur Eggs. Their unwavering support for Squid also seems to reflect its potential.
Future of squid shines light on path for DAOs
Whether or not Squid is a scam is no longer the focal point. What’s truly important is what could be learned from Squid’s roller-coaster ride. Whether it’s Dogecoin, SHIB or Squid, what is really surprising is their ability to grab attention and capital in a short period of time. Though Squid did not get the green flag from Netflix to use their IP, they had the insight of how this could be the opportunity of a lifetime, only to let it flop.
However, generating awareness is only the first step. Many companies have overlooked the importance of community and shared culture, the real core of pop culture, essentially replacing fun with infatuation.
No one knows what will happen to Squid in the future. Only time will tell us its true worth. What is more interesting is how the experience will play out and what it means for the highly autonomous communities. Squid has already gained widespread recognition from investors with many suggesting that DAOs may be the path of choice for future projects.
