'Squid Game' Scam Tokens Shake Crypto Markets as Netflix Launches New Season

As Netflix launches the new season of "Squid Game," crypto markets face a surge of tokens mimicking the hit show. Blockchain security experts are raising red flags, warning of scams and rug pulls that could trap unsuspecting investors.

'Squid Game' Tokens Flood Market as Netflix Drops New Season

Cointelegraph reports that with the debut of Season 2 of the Netflix series "Squid Game," a deluge of tokens based on the program hit the market. These tokens, nevertheless, may be scams or rug pulls, according to community members.

The second season of the hit Korean dystopian thriller "Squid Game" premiered on Netflix on December 26. Players in desperate financial straits put their lives on the line in a secret contest with a life-changing prize.

Coins bearing the same name swarmed the market as the show debuted on the streaming service. Bettors on "Squid Game" crypto tokens may not have the same chances as "Squid Game" competitors, who could win a big sum of money on the show.

Blockchain Security Experts Raise Scam Concerns

Members of the "Squid Game" community were notified by the blockchain security firm PeckShield on December 27 about tokens that were suspected of being counterfeit. A PeckShield report states that "circulating in the wild" are scam tokens inspired by the Netflix series.

Additionally, the blockchain security firm saw that the deployer was the largest holder of one coin on Base. The token's value has decreased by 99 percent since its debut. The Solana network has also seen the emergence of similar tokens based on the Netflix show.

Community Voices Skepticism Over Token Distribution

The "Squid Game" series' namesake X account was pushing a token based on the show. But someone in the community said people shouldn't buy the token.

The top "Squid Game" token holders "look the same," as the X user pointed out. This implies that only a small number of individuals will receive the tokens, and those individuals may sell their tokens when more people join the market.

Tokens bearing the same name entered the cryptocurrency market in 2021, coinciding with the debut of "Squid Game." With gains of more than 45,000%, the price of one token surged. Members of the community began to wonder if the token was a hoax when stories surfaced about users being unable to sell their tokens.

The decentralized exchange PancakeSwap was unable to process token sales at the time, according to a warning given by CoinMarketCap. For this reason, the token was dubbed a "rug pull" by some.