‘Squid-Game’ Crypto Project Collapses after Founders Abandon the Project with over 3 Million in Funding
Another picture-perfect example of project failure and how Escrow Protocol can prevent them.
The Netflix Series’ Squid Game-inspired crypto attracted enough investors to see its value surge to almost $2,800 per token… before its developers cashed out and vanished, leaving the project worthless and the Investor Community stranded.
$SQUID, a cryptocurrency that was not officially sanctioned by Netflix, was released in late October and soared in value by 310,000 percent in just a few days. It was purportedly pitched as a way to play a future online game, which never had intentions of being developed by the project founders.
There are two issues at play here that we are going to address in this article and will explain how the Escrow Protocol Investment Platform will put an end to scam-full activities like these common stories that contribute to the 90% failure rate of crypto projects.
For one we need to ask ourselves how a project can raise funding based on a false promise of offering an online game that they have absolutely no ties to in the real world? In addition ask, how it is possible that a project founding team receives these funds raised on false promises upfront, before delivering anything real.
The issue comes into play because funds are unregulated and once paid to the wallets of the receiver, there is virtually nothing that can be done to recover them. After a project receives investment funds in good faith from the investor community, it is now time for the project team to use these funds wisely and develop the project they promised to deliver.
This is where Escrow Protocol comes into play, acting like a digital middleman to securely hold funds and releases them in pre-determined payouts which are contingent on the successful completion of project Milestones. A project can be assured that the funding is in place to complete the project, but knows that in order to receive the next payout round, the current Milestone needs to be completed to satisfaction of the investor community or it could potentially see the funds getting frozen in a Community Vote.
In a case of Squid Token, a key condition to receive funding would be the release of the video game, or producing documentation for usage rights.
No delivery, no further funding. This way project owners are enticed to keep going and working towards delivering the project they set out to build.
To learn more about Escrow Protocol and the great features of the platform, check out the links below and join the Community!