Squid Game Season 2 Sparks Crypto Frenzy
The much-anticipated release of “Squid Game” Season 2 on Netflix, on December 26, has rekindled global interest in the wildly popular Korean series. This resurgence has not only captured the attention of viewers but has also given rise to a slew of new cryptocurrency tokens themed around the “Squid Game” phenomenon.
Advertisement Banner
Prominent Rise in Squid Game-Themed Cryptocurrencies
Amid the plethora of emerging tokens, the Squid Game (squidgame.top) token, known by its ticker SQUID, has made headlines with significant gains. According to CoinMarketCap data shared by Finbold on December 30, the token skyrocketed by over 6,700% in the past week, reaching a value of $0.0001203 after a remarkable 300% surge within just 24 hours.
Understanding the Popularity of SQUID Tokens
While the meteoric rise of SQUID is noteworthy, it is essential to approach such investments with caution. The token belongs to a wave of cryptocurrencies that aim to capitalize on trending cultural phenomena, despite its questionable past.
Concerns Over Squid Game Token Scams
Squid Game-themed tokens initially gained traction in 2021 during the show’s first season. Some of these tokens experienced dramatic price increases before crashing in what was later identified as a ‘rug pull’ scam. In one notorious case, developers abruptly abandoned the project, causing the token’s value to plummet to near zero, leaving investors at a loss.
Following this incident, Binance conducted an investigation into the 2021 SQUID token crash, highlighting it as a probable scam. The exchange cautioned that projects linked to high-profile cultural trends often exploit the resulting excitement to trap unsuspecting buyers into hazardous or deceitful ventures.
Examining the Legitimacy of Squidgame.top
The Squidgame.top token, which launched on the same day as the new season, has sparked fresh suspicions of a potential recurrence of the 2021 debacle. Analysis from Token Sniffer, a cryptocurrency scam detection platform, suggests that the token exhibits characteristics indicative of a possible scam.
While SQUID’s market capitalization is estimated at $5.57 million, CoinMarketCap warns that this figure is unverifiable, which raises concerns about transparency. The credibility of the token remains uncertain, with a 24-hour trading volume of $2.6 million and a self-reported circulating supply of 45.6 billion—equal to its maximum supply.
Security Concerns and Fraudulent Activities
Blockchain security firm PeckShield has identified multiple Squid Game-themed tokens as fraudulent. In one instance, a token on the Base network experienced a 99% value collapse shortly after its launch. The creator held the majority of the supply, suggesting a coordinated dump.
Further investigation on CoinMarketCap uncovered numerous SQUID token variations with distinct market capitalizations, raising alarms about potential scams. This proliferation of similar tokens can mislead investors and suggest attempts by bad actors to exploit the token’s popularity through deceptive schemes.
Risks Associated with Squid Game Tokens
Similar concerns have been noted on the Solana (SOL) network, where several wallets holding large portions of the supply appear to be interconnected, indicating manipulation and possible exploitation of unsuspecting investors.
Although the SQUID token’s price surge might attract speculative traders, its controversial past and the ongoing red flags, such as the absence of substantial use cases, underscore the significant risks involved.
