The SQUID, a cryptocurrency based on BSC network, plummeted to almost zero from as high as $2,861 after the project was revealed to be a scam. The project's unknown creator cashed out. The website and social media accounts were closed, leaving investors across the world with significant losses.

Despite the rug pull and the Owner permission being transferred to the black whole address, the SQUID contract still has a lot of risks, including over-centralization, which might result in another rug pull. The code still allows for risky operations following the upgrade of the contract that can result in infinite tokens being minted and other related threats.

Learn more about our code analysis here:(https://www.gate.io/article/23632)。
The investors of the SQUID project are now seeking salvage. Solutions are proposed to make it truly decentralized and entirely community governed. SQUID community members also reached Gate.io for help. Though we can provide development funds, wallet services or trading marketplace, etc., we could not do that for the original SQUID contract as we found it highly risky after code analysis.

Among several rescue solutions sent to us, the one from squidao.org (offered by the Lion community contact and SQUID community member) is considered the safest and most practical solution, which provides flexibility to the original SQUID community by allowing them to take part in any other solution in the future if they regret.

This solution replaces the old SQUID contract with the new one to fix the vulnerabilities in the original SQUID contract and block the SQUID tokens held in the scammers' addresses.

The solution is as follows.
1)Gate.io should provide the original SQUID deposits in a limited time period and try to avoid deposits from scammers' addresses with the help of the SQUID community
2) The original SQUID tokens should be swapped for the new SQUID tokens at the ratio of 1:1. Gate.io provides a marketplace for the new SQUID tokens (the new tokens still use the token symbol SQUID).
3) The new SQUID tokens should use the new token contract provided by squidao.org
4)squidao.org should promise that the contract code is open-sourced and accept code checks by the whole community; squidao.org should also promise that extra tokens after the swap or tokens as development funds should be burned or governed by the community
5) Gate.io will not support the original SQUID to the new SQUID token swap after the swap period. The circulating supply of the new SQUID tokens will be posted to permanently wipe out the tokens from scammers' addresses.
6) Gate.io will provide a Regret function to allow users to swap the new SQUID tokens back to the old SQUID tokens and withdraw if they choose so later (Once reversed, the tokens could not be swapped to the new SQUID back again)

In this solution, the original SQUID contract with potential high risks will be replaced with the new open-sourced contract which everyone could check; a large amount of SQUID tokens in the scammer's address will be removed from the token supply, and the solution also allows one to regret and to take part in a better solution in the future.

Risks Warning:
This solution is currently the best one we have reviewed, but not a perfect one in any way. Though Gate.io will block the original SQUID tokens' scammer addresses, there is a possibility that the scammer addresses could circumvent the checks using mixer transfer. The entire community should play their part to help monitor the scammers' addresses activity and report any suspicious balance changes to us at [email protected].
Monitor original SQUID large holding address at: https://www.bscscan.com/token/0x87230146e138d3f296a9a77e497a2a83012e9bc5#balances

Risk Warning 2
Though the community will take over the SQUID, the price is still uncertain, influenced by a combination of factors such as the development of the community and the industry. Gate.io will help support the SQUID community, but there is no guarantee of the success of the new SQUID. Please fully understand the risks and exercise caution when taking part in trading the SQUID.

Disclaimer: Until now, neither Gate.io nor related staff has invested or traded the SQUID in any centralized or decentralized exchanges.

About SQUID Trading
Gate.io will start SQUID trading on 10 Nov. at 09:00 UTC. Only the original SQUID withdrawals are provided at the beginning. The new SQUID withdrawals will be available when the new token contract is available later.

1） Deposit SQUID at： https://www.gate.io/myaccount/deposit/SQUID
2）Trade SQUID at：https://www.gate.io/trade/SQUID_USDT

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Gate.io Team

Nov 09, 2021