Squid game token scams flood the crypto market.
Tokens based on the Squid game series on Netflix have flooded the market since the show's second release. However, community members warned that these signs could be scams or carpet-pulling.
On December 26, Netflix released the second episode of the popular Korean dystopian thriller series Squid Game. The show revolves around a private competition where players in dire financial straits risk their lives.
When the series hit the streaming site, new crypto tokens of the same name flooded the markets. However, while Squid Game contestants have a chance to win huge sums of money on the show, those who have staked their money on Squid Game crypto tokens may not have the same chance.
PeckShield warns against fraudulent Squid game tokens
On December 27, blockchain security firm PeckShield warned community members that Squid Game tokens were fraudulent. According to PeckShield, scams based on the Netflix series are “circling in the wild.”
Source: PeckShield
The blockchain security firm also pointed out that the single token deployed on Base has the largest holdings. Since its launch, the token has already dropped by 99%. Similar signs based on the Netflix show also appeared in Solana's network.
Squid game symbols on Solana blockchain Source: Dexscreener
The Squid game series of the same name introduced an X tag based on the show. However, a community member warned users against buying the token. The X user pointed out that the main owners of the Squid Game token all “look the same”. This means that the tokens are distributed to a few people who can dump the tokens after other people buy them.
RELATED: Memecoins lose momentum as they lose $40B in December
Season 1 of The Squid Game inspired similar crypto tokens.
When Squid Game was released in 2021, tokens of the same name hit the crypto market. One token has surged in value, showing gains of over 45,000%. However, when users were unable to sell their coins, community members suspected the token was a scam.
At the time, CoinMarketCap issued a warning stating that users would not be able to sell their tokens on the decentralized PancakeSwap exchange. Because of this, some have said that the talk is “carpet pulling.”
Magazine: Story Protocol helps developers survive AI attack with ‘programmable IP' attack
