Tokens based on the Netflix Squid Game series have flooded the market as the program's second season was released. However, the community has warned that these Tokens may be scams or financial traps.
On 12/26, Netflix released a new episode of the popular Korean horror series Squid Game. The film revolves around a secret competition where financially struggling players risk their lives to win a substantial cash prize.
As this series appeared on the online platform, new Cryptocurrencies of the same name have flooded the markets. However, while Squid Game contestants have a chance to win a large sum of money in the film, investors in Squid Game Tokens may not be as fortunate.
PeckShield Warns About Squid Game Token Scams
On 12/27, blockchain security firm PeckShield warned the community about Squid Game Tokens that they consider to be scams. According to PeckShield, these Tokens are "widely circulating" based on the Netflix series.
Source: PeckShield
The blockchain security company also pointed out that a Token developed on Base has the project's deployer as the largest holder. Since its launch, this Token has dropped in price by up to 99%. Similar Tokens based on the Netflix series have also appeared on the Solana network.
Squid Game Token on the Solana blockchain. Source: Dexscreener
An X account associated with the Squid Game series has promoted a Token based on this program. However, a community member has warned users not to buy this Token. The X user pointed out that the top holders of the Squid Game Token all "look the same." This means the Token is likely distributed to a few individuals who can dump the Token when others buy in.
The First Season of Squid Game Drove Similar Crypto Tokens
When Squid Game was released in 2021, Tokens of the same name entered the crypto market. One Token skyrocketed in value, reaching over 45,000% in profits. However, the community suspected this Token was a scam when reports of users being unable to sell their coins emerged.
At the time, CoinMarketCap issued a warning, stating that users could not sell their Tokens on the decentralized exchange PancakeSwap. For this reason, some believed the Token was a "financial trap."
