Trading Squid Game
Don’t do it.
However, it seems like the pump and dump scheme produced two explosive wins. On the 26th of October the token was trading at $0.02 per. After a week of feverish trading, it had exploded in price to more than $600 on November 1st. The price then collapsed to $0.0008 per token and traded below a penny for a couple of days.
That’s where the trade get’s interesting. I don’t know how many people actually paid $600 for SQUID, but I’m sure plenty paid $10, $20, and even $30 to $40 for the coin. Let’s say you were one of the unlucky owners of SQUID at $40 and that you bought $5,000 or 125 tokens. Let’s also say that you didn’t get shook by the sudden 99.99% drop, but instead decided to roll the dice and buy in at $0.004 with the same amount of USD.
The reason $0.004 is because for close to 24 hours, you could have bought all you wanted. After making this trade, you would have had 1.25 million tokens, actually 1,250,125 tokens and a total buy in of $10,000. Fast forward another 48 hours and the price of SQUID is $0.08 and that 1,250,125 is now worth over $100,000, a 10x return.
Even if you bought 8 SQUID tokens at the tippy top price of $628 and did the same thing, you’re still up over $100,000 on paper. And, that’s the rub, because from my understanding, you cannot sell SQUID. So, again don’t trade it. This was just for understanding sake. I’ve seen hundreds of these types of situations, where a penny stock gets crushed but does have what we used to call a “dead cat bounce.” With this one, the bounce has been massive.