With the release of the second season of the Netflix hit series “Squid Game,” a wave of related crypto tokens has hit the market, prompting warnings from the community about potential scams and rug pulls. These tokens, named after the series, are surfacing just as the new episodes of the Korean dystopian thriller debut on Netflix.
Series Influence on Crypto Market
“Squid Game,” which centers around a brutal contest with a massive cash prize for financially desperate contestants, has inspired a variety of crypto tokens bearing its name. While the stakes in the series are life and death with a chance to win big, the reality for investors in these tokens could be starkly different. Blockchain security firm PeckShield issued alerts on December 27, cautioning that many of these Squid Game-themed tokens are likely fraudulent.
PeckShield’s investigation revealed that several of these tokens showed typical signs of scams, including one on the Base platform where the deployer also held the majority of the tokens. Since its introduction, this particular token’s value has plummeted by 99%. Similar patterns have emerged on the Solana network, with tokens showing alarming red flags indicative of potential rug pulls.
An account on the social platform X, which shares the name of the Netflix series, has been promoting one of these tokens. Community members have warned against purchasing it, noting suspicious activity such as identical top holders, which suggests a setup where a few control most of the tokens and could dump them, harming ordinary investors.
This isn’t the first time Squid Game-themed tokens have caused a stir. When the series initially released in 2021, a token by the same name surged in value, recording gains of over 45,000%. However, the excitement turned to suspicion when users reported difficulties in selling their holdings, leading to widespread allegations of a scam.
CoinMarketCap eventually flagged the token, noting issues on PancakeSwap where users were unable to sell their tokens, further cementing fears that it was indeed a rug pull designed to defraud investors.
The intersection of popular culture and cryptocurrency has led to a unique phenomenon where shows and trends can quickly inspire digital assets. While this can generate excitement and novelty in the market, it also opens the door to scams that prey on less experienced investors attracted by the allure of trending topics.
What The Author Thinks
The trend of tokens inspired by popular media, like “Squid Game,” serves as a stark reminder of the volatility and risk inherent in the cryptocurrency market, especially within segments driven by popular culture. Investors should approach such opportunities with heightened caution, conducting thorough due diligence before committing funds. Regulatory bodies and community platforms must also play their part by enhancing scrutiny and providing timely warnings to prevent widespread financial losses among the public.
As we advance, the blend of entertainment and investment will likely continue to evolve, potentially offering legitimate opportunities but also posing significant risks. The crypto community must strive for a balance where innovation can flourish without compromising the safety and integrity of investors.
Featured image credit: Huw Gwilliam via Flickr
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