Why Squirt Game is rug-proof

Unless you are a complete crypto virgin, you’ve probably heard about the Squid Game cryptocurrency spin-off, from the highly popular Netflix series of the same name. It’s likely that you also heard about how the SQUID token pumped like crazy, reaching a Market Cap of over $50 BILLION in just a matter of days, only to drop to zero almost instantly.

Sadly, the SQUID token was a complete scam, and thousands of people lost their funds. This happened because the developers behind SQUID decided to pull out all of the funds in the liquidity pool, meaning people could not sell their tokens as there were no funds to exchange their SQUID into. This is known in the crypto world as a “rug-pull” and sadly it happens over and over again.

The reason it happens is usually down to individual investors not spending the time to review the project in detail, and crucially how the associated crypto smart contracts (running in the background on the blockchain) are working. Instead, they see a token rising in price at an astronomical pace, and the FOMO (Fear of Missing Out) kicks in. People don’t want to miss on an opportunity to get rich quick, and they lump their money onto a crypto token, having no idea about it. The scammers get rich, and the crypto community get poor.

We ourselves f***ing hate when scumbag developers do this. Some of the members of our own team have experienced “rug-pulls” in the past, and it’s truly depressing. We sat and watched the SQUID project from the side lines, watching how people were turning $100 investments into $10,000 investments overnight. It all looked great to begin with. The Squid Game website looked very professional, the concept ticked all the boxes, the opportunity seemed unmissable. And then came the rug-pull.

Squirt Game attempts to do things differently.

Our tagline is —

No Rug …All Tug!

What do we mean by rug-proof?

The original Squid Game token was rugged because the developers removed the entire liquidity pool from the Pancake Swap DEX. The original token “pair” was SQUID and BNB, which meant people paid in BNB to receive SQUID. Conversely, in order to sell their SQUID on Pancake Swap, they would receive back BNB.

The more people bought SQUID, the more BNB was being added into the liquidity pool for this token pair. As the price for SQUID rose, the more BNB was needed to pay for SQUID. As the price of SQUID started to moon, people were paying in HUGE amounts of BNB to get hold of SQUID tokens, so the liquidity pool of BNB was in the millions of dollars.

That’s sadly when the project got “rug-pulled”. The developers of Squid Game held the vast majority of liquidity in the pool, and in order to remove their funds from the pool, they simply exchanged their Pancake Swap Liquidity Pool (Cake-LP) tokens back to Pancake Swap, which allowed them to withdraw their percentage ownership of the pool, which meant withdrawing their percentage of SQUID…..and even more crucially…. their percentage of BNB.

This is what happened to the price of SQUID when they did this…

What this meant was that suddenly the huge amount of BNB that was inside the pool was suddenly gone, and if there’s hardly any BNB in the pool, how could you SELL your SQUID tokens? The short answer is you couldn’t, because there’s no BNB in the liquidity pool to exchange it to. People were left with their SQUID tokens, but no actual way of selling them, because there was nothing to exchange them to! The investors were completely rug-pulled.

How is Squirt Game different?

The Squirt Game developers will automatically fund the initial liquidity pool from the BNB raised from the pre-sale. That’s typical practice of a crypto start up, but what’s different with us, is that once the huge liquidity pool is created, the Squirt Game team cannot claim the CAKE-LP tokens received for 3-years as this is written into the pinksale pre-sale smart contract.

Now CAKE-LP tokens act as a kind of “receipt of ownership” to a liquidity pool. You add your own tokens to a pool alongside BNB, and receive CAKE-LP in return. When you are ready to cash out, you send your CAKE-LP back to the Pancake Swap to prove that you owned the tokens inside the liquidity pool, and can then cash out your BNB and tokens. But if you don’t have the CAKE-LP tokens, then there is no possible way to remove your tokens from the liquidity pool. The only way they can actually move in and out of wallets, is if they are bought or sold by investors.

So, in the case of Squirt Game, the SQUIRT and BNB automatically go to the Pancake liquidity pool, and the LP tokens are locked for three years.

What is Token “Vesting”

Quite simply this is how tokens are released over a certain period of time, rather than all being released at once. This is important both from an investor, and a team perspective.

From an investors perspective, it avoids initial “pump and dump” scenarios. In the case of Squirt Game, we are offering SQUIRT at a more favourable price during the pre-sale, than the price that will initially be offered on Pancake Swap.

To be clear, the pre-sale offers 625,000,000,000 SQUIRT per BNB.

However, the initial price on pancake swap is set to 1 BNB gets 500,000,000,000 SQUIRT per BNB.

So you can see that you get far more SQUIRT per BNB during pre-sale than you do when it launches on pancake swap.

So if people are getting SQUIRT tokens cheaper during pre-sale, what is to stop them instantly just selling them all at a profit once the launch starts? After all, you wouldn’t blame anyone for wanting to make an instant profit right?

Well this scenario isn’t great for long-term investors….they definitely do not want to see a “pump and dump” of their token, and neither do we. So because of this we use token “vesting”….this means that when the pre-sale ends, the buyers who secured SQUIRT tokens at the cheaper rate, will only be able to claim 25% of their tokens immediately. The remaining tokens can be claimed at a rate of 25% every 7 days. This stops all tokens flooding the market price, and helps raise the “price floor” of the token, which is exactly what our investors want to see.

Now “vesting” doesn’t just apply to investors….it also applies to the team! However the claim period is different for the team…instead of receiving an initial 25%…..we receive just 5%….. and this is followed by 5% every 7 days…..so whilst investors will receive 100% of their tokens over a 3-week period, it will actually take 20 WEEKS for the team to receive their share of SQUIRT…..and that’s exactly how it should be. the team get paid last.

Not only this, but the team tokens go into a “multisig” wallet. If you are not familiar with the term, this is basically a wallet, where multiple parties (team members) must each digitally sign a transaction in order to approve it. This means that any BNB or SQUIRT stored in the multisig wallet, can only be transferred or withdrawn, once the Squirt Game team members approve the transaction. This avoids situations where a rogue team-member could theoretically try to run off with the entire teams funds. Now we are a team of 8 and we trust each other, but trust isn’t enough to convince potential investors…after all, you don’t know us personally! Hence the reason that we insist upon all funds being stored in the multisig wallet. If you’d like to read more about multi-sig, do a google search for “GNOSIS SAFE” and see how it works.