Tokens based on the Squid Game series on Netflix have flooded the market as the show released its second season. However, community members warned that these tokens may be scams or rug pulls.
On Dec. 26, Netflix released the second installment of the popular Korean dystopian thriller series Squid Game. The show revolves around a private contest where players in dire financial situations risk their lives to win a hefty prize.
As the series hit the streaming site, new crypto tokens with the same name flooded the markets. However, while Squid Game contestants may have a chance to win a huge amount of money in the show, those who put their money on Squid Game crypto tokens might not have the same odds.
PeckShield warns against scam Squid Game tokens
On Dec. 27, blockchain security firm PeckShield alerted community members of Squid Game tokens that they deemed fraudulent. According to PeckShield, scam tokens based on the Netflix series are “circulating in the wild.”
Source: PeckShield
The blockchain security firm also flagged that one token deployed on Base had its deployer as its largest holder. Since its launch, the token has already dropped by 99%. Similar tokens based on the Netflix show have also popped up in the Solana network.
Squid Game tokens on the Solana blockchain. Source: Dexscreener
An X account with the same name as the Squid Game series had been promoting a token based on the show. However, a community member warned users not to buy the token. The X user pointed out that the top holders for the Squid Game token all “look the same.” This means the tokens are distributed to a few people who may potentially dump the tokens once other people buy in.
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Squid Game Season 1 spurred similar crypto tokens
When Squid Game was released in 2021, tokens of the same name hit the crypto market. One token skyrocketed in price, showing gains of over 45,000%. However, community members suspected the token of being a scam when reports of users being unable to sell their coins emerged.
At the time, CoinMarketCap issued a warning, saying that users could not sell their tokens at the decentralized exchange PancakeSwap. Because of this, some said that the token was a “rug pull.”
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