Scam Squid Game Tokens Flood the Crypto Market

Tokens based on Netflix’s Squid Game series have flooded the market since the second season of the show was released. However, community members have warned that these tokens could be scams or “rug pulls.”

On December 26, Netflix released a sequel to the hit Korean dystopian horror film Squid Game. The film revolves around a secret competition where financially struggling players risk their lives to win a huge prize.

When the show debuted online, a series of Squid Game cryptocurrency tokens appeared on the market. However, while the contestants in the show have a chance to win huge sums of money, those who invested in these tokens are not sure to be so lucky.

PeckShield Warns of Squid Game Token Scam

On December 27, blockchain security firm PeckShield warned of Squid Game tokens that it deemed to be scams. According to PeckShield, these tokens are “circulating widely.”

In particular, a token deployed on the Base network was found to have its deployer also as its largest holder. The token has dropped in value by 99% since its launch. Similar tokens have also appeared on the Solana network.

An account named X called Squid Game promoted a token related to the movie. However, a community member warned users not to buy the token. The person pointed out that the largest holders of the token “all look the same,” implying that the token was distributed to a small group of people who could dump it when new investors buy in.

Similar tokens appeared when part 1 was released

When Squid Game launched in 2021, tokens of the same name also appeared on the market. One token increased in price by more than 45,000%, but the community later suspected that this was a scam when it was reported that users were unable to sell their tokens.

At the time, CoinMarketCap issued a warning that users could not trade the token on the decentralized exchange PancakeSwap. This led many to believe that this was a “rug pull.”