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HONEYPOT + RUG PULLBSC

Squid Game (SQUID)

November 2021$3.4M lost
96
/100
HIGH RISK

The SQUID token exploited the popularity of the Netflix series Squid Game. It surged 75,000% before developers drained all liquidity. A honeypot mechanism prevented holders from selling.

What Happened

SQUID launched on BSC in late October 2021, capitalizing on the Squid Game Netflix hype. The token's smart contract contained a 'Marbles' anti-dump mechanism that prevented anyone except the deployer from selling. The price rocketed from $0.01 to $2,862 in days. On November 1, 2021, the developers drained the liquidity pool and vanished, crashing the price to near zero. Investors lost approximately $3.4 million. The contract's honeypot function was detectable through static bytecode analysis — exactly the type of vulnerability GoldenBit.ai's Smart Contract Audit pillar flags automatically.

Red Flags Detected

1

Anti-sell mechanism embedded in smart contract — holders could buy but not sell

2

Anonymous development team with no verifiable identities

3

No smart contract audit from any recognized firm

4

Artificially restricted selling created false scarcity and price inflation

5

Website and social media accounts disappeared after the rug pull

6-Pillar Analysis Breakdown

Smart Contract2/100

Honeypot detected: anti-sell function restricts transfers to deployer-only

Tokenomics8/100

100% of liquidity controlled by deployer wallet, no lock

Team & Credibility5/100

Fully anonymous team, no GitHub activity, no LinkedIn profiles

Liquidity12/100

Single-sided liquidity with no DEX lock mechanism

Sentiment35/100

Viral hype driven by Netflix association, bot amplification detected

Compliance15/100

No KYC, no legal entity, multiple jurisdiction red flags

Interactive Risk Simulator — SQUID

The sliders below are pre-set to Squid Game's actual risk profile. Drag them to explore how different pillar scores affect the composite risk score.

SQUID RISK PROFILE
Smart Contract40% weight
98/100

EVM bytecode analysis, honeypot detection, proxy risks

Tokenomics10% weight
92/100

Supply distribution, vesting, liquidity locks

Team & Credibility15% weight
95/100

Identity verification, GitHub activity, track record

Liquidity & Market15% weight
88/100

DEX depth, wash trading, order book health

Community Sentiment10% weight
65/100

NLP social scoring, bot detection, FOMO signals

Regulatory10% weight
85/100

OFAC screening, AML flags, MiCA compliance

91
/ 100
HIGH RISK
WEIGHTED COMPOSITE
Smart
+39
Tokenomics
+9
Team
+14
Liquidity
+13
Community
+7
Regulatory
+9

Lessons Learned

Always verify that a token's smart contract allows selling — not just buying. Honeypot detection tools like GoldenBit.ai's scanner can identify anti-sell mechanisms in seconds.

Be wary of tokens that capitalize on trending pop culture events. Scammers exploit viral moments to create urgency and FOMO.

Check if the development team has verifiable identities. Anonymous teams with no GitHub or LinkedIn presence are a major red flag.

Never invest in a token without an independent smart contract audit from a recognized firm like CertiK, Trail of Bits, or OpenZeppelin.

Scan Similar Tokens

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SIMILAR TOKENS TO WATCH

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Influencer-promoted token with honeypot characteristics

Frequently Asked Questions

What happened with Squid Game (SQUID)?
SQUID launched on BSC in late October 2021, capitalizing on the Squid Game Netflix hype. The token's smart contract contained a 'Marbles' anti-dump mechanism that prevented anyone except the deployer from selling. The price rocketed from $0.01 to $2,862 in days. On November 1, 2021, the developers drained the liquidity pool and vanished, crashing the price to near zero. Investors lost approximately $3.4 million. The contract's honeypot function was detectable through static bytecode analysis — exactly the type of vulnerability GoldenBit.ai's Smart Contract Audit pillar flags automatically.
How much money was lost in the Squid Game scam?
Investors lost approximately $3.4M in the Squid Game (SQUID) incident on BSC in November 2021. GoldenBit.ai's 6-Pillar AI Risk Engine assigned a risk score of 96/100, which would have flagged this token as high risk before the losses occurred.
Could the Squid Game scam have been prevented?
Yes. GoldenBit.ai's automated analysis would have detected multiple critical red flags: Anti-sell mechanism embedded in smart contract — holders could buy but not sell; Anonymous development team with no verifiable identities; No smart contract audit from any recognized firm. The composite risk score of 96/100 clearly indicated extreme danger.
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