Squid Game tokens flood crypto market amid season 2 release

As Netflix launched the second season of Squid Game on December 26, a surge of Squid Game-themed (CRYPTO:SQUID) tokens flooded the crypto market, sparking warnings from community members about potential scams and rug pulls.

The popular show, which centers on a deadly contest offering a life-changing prize, had a major influence on the crypto space as new tokens associated with the series began circulating.

However, investors should exercise caution, as these tokens may not offer the same rewards as the show's contestants.

Blockchain security firm PeckShield raised alarms on December 27, identifying fraudulent Squid Game tokens.

The firm revealed that tokens based on the Netflix series were circulating on various blockchains, with some already showing signs of manipulation.

PeckShield flagged a token deployed on Base, noting that its largest holder was also its deployer.

This token had already lost 99% of its value since its launch.

Similar tokens based on Squid Game appeared on the Solana (CRYPTO:SOL) blockchain as well.

On social media, a user promoting a Squid Game-themed token highlighted the suspicious distribution of tokens.

The user pointed out that the top holders seemed identical, suggesting that a few individuals could dump their tokens once others start purchasing.

This isn't the first time Squid Game-related tokens have emerged.

In 2021, following the release of the first season, a Squid Game token skyrocketed by over 45,000%.

However, many users reported being unable to sell their tokens on PancakeSwap (CRYPTO:CAKE), leading some to label it a “rug pull.”