Squid Game tokens surge after season 2 launch with scam risks

After the release of "Squid Game" Season 2 on December 26, 2024, a wave of Squid Game-themed (CRYPTO:SQUID) crypto tokens flooded the market.

However, many of these tokens were flagged as fraudulent, raising concerns about the risks for investors.

Blockchain security firm PeckShield issued a warning about the rise of scam tokens, particularly noting their presence on decentralised exchanges.

These tokens, which launched mainly on the Solana (CRYPTO:SOL) network, saw drastic price drops of up to 99% shortly after their launch.

PeckShield pointed out a specific token deployed on Ethereum's Base platform, noting that the deployer controlled a significant portion of the token's supply, which led to a sharp price decline.

The suspicious nature of these tokens, especially their market behavior, such as identical top holders, pointed to potential price manipulation and coordinated pump-and-dump schemes.

On social media, particularly X, some Squid Game-themed accounts aggressively promoted these tokens, raising red flags for users.

“Yes, these are the top holders. Yes, they look all the same. No, that is not a coincidence. Don’t get rugged,” one community member warned.

This situation mirrors the events from 2021 when the original "Squid Game" token, SQUID, experienced an explosive price increase before crashing in what became one of the most notorious rug pulls in crypto history.

Investors were left unable to sell their holdings, leading to a significant loss of funds.

Scams and hacks remained a persistent problem for the crypto market in 2024, with the total cost of hacks and scams surpassing $2.3 billion, a 40% increase from the previous year.