Dramatic Rise in Token Schemes and Deceptions Coincide with the Debut of Netflix's Squid Game Season 2
Gearing Up for the Latest Crypto Craze: Squid Game Tokens
With the second season of Netflix's sensation, "Squid Game," hitting the streaming platform, crypto markets saw an upsurge of tokens inspired by the dystopian drama. But beware, not all these tokens are as glamorous as they seem!
Following the surge in popularity right after the series premiered on December 26, Squid Game-themed tokens swarmed numerous cryptocurrency exchanges. However, the abrupt appearance of multiple tokens raises questions about their authenticity and the accompanying financial risks.
Just a day after the series' release, blockchain security firm PeckShield cautioned the community about the dubious nature of various Squid Game-themed tokens. In a warning posted on Reddit, they flagged a particular token deployed on Ethereum's Base platform, citing significant control by the token's deployer and a steep 99% price decline since its launch.
Similar anxious scenarios emerged on Solana, with tokens exhibiting questionable behavior such as identical top token holders, suggesting price manipulation and orchestrated pump-and-dumps that often end in rug pulls - a deceptive practice where development abruptly stops.
One particular Squid Game-themed account on Reddit was the subject of a finger-pointing frenzy from the community. Accusations of aggressive token promotion and an unusual consistency among the largest token wallet holders hinted at a possible scam.
"Don't get rugged," advised one user, echoing the crypto community's constant struggle with hacking and scams throughout 2024. With several high-profile hacks and social media accounts compromised in the past few months to promote scam tokens, the crypto world has lost over $2.3 billion in 2024, marking a steep 40% increase from 2023.
Flashback to 2021
This isn't the first time Squid Game has had a run-in with crypto token scams. After the series premiered its first season in 2021, certain token launches sparked by hype ended in fraud. In one notable instance, a token called 'SQUID' experienced a record-breaking price surge of 45,000%, only to be followed by reports of investors being unable to sell their holdings on decentralized exchanges, leading to warnings from platforms like CoinMarketCap.
Remember, the crypto world is a high-risk, volatile environment. Before investing in any token, regardless of its affiliation with a popular franchise, it's essential to conduct thorough research, verify the legitimacy of the project, and be on the lookout for red flags such as unrealistic hype, pump-and-dump schemes, anonymous developers, lack of audits, anti-sell functions, unlocked liquidity, and opaque operations.
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[4] "Investing in Cryptocurrency" - Investopedia
[5] "How to Stay Safe from Scam Tokens" - CoinMarketCap
- Given the latest crypto trend, Squid Game-themed tokens, one must exercise caution when investing, as not all tokens are authentic and could entail financial risks.
- Blockchain security firm PeckShield warned about the questionable nature of some Squid Game tokens deployed on Ethereum's Base platform, pointing out significant control by the token's deployer and a sharp price drop.
- On Solana, similar concerns arose with tokens exhibiting signs of price manipulation, pump-and-dumps, and potential rug pulls.
- One Squid Game-themed Reddit account was subjects of allegations, with users suspecting aggressive promotion and unusual consistency among leading wallet holders.
- Crypto investors are frequently reminded to "don't get rugged," due to the ongoing struggles with hacking and scams in the crypto world, which has resulted in a $2.3 billion loss in 2024.
- A similar scenario occurred in 2021 when certain token launches related to Squid Game ended in fraud, with one token, 'SQUID', experiencing a record-breaking price surge followed by reports of investors being unable to sell their holdings.
- Before making any investment decisions, it's crucial to conduct thorough research, verify the legitimacy of the project, and be vigilant for red flags like unrealistic hype, pump-and-dump schemes, anonymous developers, lack of audits, anti-sell functions, unlocked liquidity, and opaque operations.
