The release of Squid Game Season 2 on Netflix on December 26 has reignited fascination with the hit Korean series, leading to the emergence of several new Squid Game-themed cryptocurrency tokens. Among these, Squid Game (squidgame.top) SQUID has seen massive gains, rallying over 6,700% in the past week, trading at $0.0001203 after a 300% surge in the last 24 hours according to data from CoinMarketCap on December 30.
However, the history of Squid Game tokens raises significant scam concerns. Initially gaining popularity in 2021 during the show’s first season, some tokens experienced massive price surges before plummeting in what was identified as a ‘rug pull’ scam, where developers suddenly abandoned the project, causing investors to lose nearly all value. Binance investigated the 2021 SQUID token crash, concluding it was likely a scam, highlighting how projects linked to popular culture can exploit hype for fraudulent schemes.
The legitimacy of the new Squidgame.top token, launched on the same day as the new season, is under scrutiny. Analysis by the cryptocurrency scam detection platform Token Sniffer has indicated potential scam signs. With an estimated market capitalization of $5.57 million, CoinMarketCap warns that this figure is unverifiable, pointing to transparency issues. The token’s 24-hour trading volume is $2.6 million, and its circulating supply matches its maximum of 45.6 billion, which adds to the skepticism.
Blockchain security firm PeckShield has flagged multiple Squid Game-themed tokens as fraudulent, including one on the Base network that dropped by 99% shortly after launch, with its creator holding most of the supply. This scenario suggests a coordinated dump. Moreover, the existence of multiple SQUID token variations with different market caps on CoinMarketCap further fuels concerns about potential scams, potentially confusing investors and indicating fraudulent schemes.
Similar issues have been observed on the Solana network, where significant portions of the token supply in some wallets are linked, suggesting manipulation. While the price surge of SQUID might attract speculative traders, its controversial past combined with current red flags, like the absence of a clear use case, signals substantial risks.