Many Squid Game tokens appeared after the release of season 2, raising concerns in the community about the risk of fraud and rug pull.
After Netflix released the second season of the hit series Squid Game on 12/26, the cryptocurrency market witnessed a flood of tokens bearing the name of this series. However, the incident quickly raised alarm bells in the community about the risk of fraud and rug pull - a trick where developers suddenly withdraw their Capital, causing the token value to plummet and investors to lose everything.
Squid Game, the horror series set in a chaotic setting, revolves around a brutal survival competition with a huge prize for the winner. But unlike the chance to change one's fortune in the series, investing in Squid Game tokens carries the risk of losing all the money.
History repeats itself
Just 1 day after the release of season 2, on 12/27, the blockchain security company PeckShield warned about the increase in suspicious Squid Game tokens. PeckShield said these tokens are being widely distributed and particularly noted a token on the Base network, where the deployment address is also the largest holder. This token has lost 99% of its value since its launch. Similar tokens have also been found on the Solana network.
Even an X (formerly Twitter) account bearing the name of the series has promoted the Squid Game Token. However, a community member quickly warned users not to invest in this token, pointing out that the accounts holding large amounts have suspicious signs, implying the possibility of market manipulation and the risk of a Dump when they attract enough investors.
This is not the first time this phenomenon has occurred. In 2021, after Squid Game season 1 became a global sensation, many tokens of the same name also appeared. One of them skyrocketed in value by more than 45,000% before being exposed as a fraud project when users could not sell the tokens on the decentralized exchange PancakeSwap.
CoinMarketCap, a website that tracks cryptocurrency market data, has issued a warning about this token, indicating signs of a Rug Pull.
