The release of Netflix’s Squid Game Season 2 on December 26 has sparked a wave of crypto tokens inspired by the series. However, blockchain experts and community members are warning investors that many of these tokens may be scams or rug pulls.
A Flood of Squid Game Tokens
As the dystopian thriller series returned to Netflix, crypto markets saw a surge in Squid Game-branded tokens. While the show’s contestants risk their lives for a chance to win a massive prize, those investing in these new tokens face a high likelihood of financial loss.
Blockchain security firm PeckShield sounded the alarm on December 27, highlighting several fraudulent Squid Game tokens. PeckShield noted that one token, launched on the Base network, had its deployer as the largest holder, raising concerns of a potential rug pull. Since its launch, the token has already lost 99% of its value. Similar tokens have also surfaced on the Solana network, further alarming investors.
Warning Signs and Community Alerts
An X (formerly Twitter) account promoting a Squid Game-themed token was flagged by community members for suspicious activity. A user pointed out that the token’s top holders appear to be the same entities, suggesting the tokens are concentrated in a few wallets. This setup could allow the token creators to dump their holdings after other investors buy in, leaving buyers with worthless tokens.
A Repeat of 2021’s Squid Game Token Scams
This isn’t the first time Squid Game tokens have caused a stir in the crypto world. Following the release of the series’ first season in 2021, a Squid Game-themed token saw gains of over 45,000%. However, reports soon surfaced that users were unable to sell their tokens on decentralized exchange PancakeSwap.
At the time, CoinMarketCap issued a warning, labeling the token as a likely scam. The incident was widely considered a rug pull, a type of crypto fraud where developers create and hype a token, only to abandon it after draining investors’ funds.
Protecting Yourself from Crypto Scams
The resurgence of Squid Game tokens highlights the ongoing risks in the crypto market. Investors should exercise extreme caution and consider these tips to avoid falling victim to scams:
- Research the Token: Verify the token’s legitimacy, including its development team and holder distribution.
- Beware of Unrealistic Gains: Be cautious of tokens that promise massive returns in a short time.
- Check for Warnings: Look for community alerts or warnings from blockchain security firms like PeckShield.
- Avoid Hype: Stay skeptical of tokens promoted heavily on social media without credible backing.
While Squid Game Season 2 has captivated audiences worldwide, investors should remain vigilant and avoid falling for fraudulent schemes that exploit the show’s popularity.
