Crypto alternate Binance is investigating the SQUID token crash and considers it a rip-off, an organization 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 unhealthy actors,” the spokesperson stated.
- Binance may also present their findings to legislation enforcement officers within the acceptable jurisdiction.
- The play-to-earn SQUID protocol is constructed on Binance Sensible Chain (BSC), however Binance emphasised that BSC is an open-source ecosystem and so the corporate doesn’t have oversight over tasks constructed on the community.
- “A majority of these rip-off tasks have turn out to be all too widespread within the DeFi area as speculative crypto buyers in search of the subsequent ‘moon shot’ are fast to spend money on tasks with out doing the suitable due diligence,” the spokesperson stated.
- As reported earlier this week by CoinDesk, the value of the SQUID token has crashed to just about zero and its builders have stated they’ve left the mission.
- Barron’s first reported on the investigation. The token’s builders seem like utilizing Twister Money to cowl their tracks, Binance informed Barron’s.
Learn extra: Play-to-Earn Squid Token Rockets 35,000% in 3 Days; Some Customers Unable to Promote It
UPDATE (Nov. 3, 21:39 UTC): Up to date to incorporate affirmation and statements from Binance.