Scammers have once again taken advantage of the popular Squid Game series, this time launching a fraudulent cryptocurrency token named “SQUID” on the Base blockchain.
The token, which has already experienced a dramatic 99% drop in value, was detected by PeckShieldAlert, a blockchain security firm, just hours after its deployment.
The scam, which follows the classic pump-and-dump scheme, left many investors with significant losses. They were lured by the hype surrounding the popular Netflix show.
The Buzz Around the Squid Game Season 2
The launch of the SQUID token coincided with the rising buzz around the second season of Squid Game, particularly the cryptocurrency storyline featured in Episode 3 of Season 2. In this episode, a character named Player 333, Lee Myeong-gi, confronts guards after being robbed of his wallet and phone.
It was later revealed that he ran a YouTube channel called “MG Coin” that promoted a cryptocurrency. The channel ultimately collapsed, causing him a massive loss of 15.2 billion won. This fictional plot involving cryptocurrency made for a perfect backdrop for scammers to create a fraudulent token that seemed to be tied to the show.
PeckShieldAlert Warn Users
PeckShieldAlert raised the alarm on Twitter, warning the public about the fake token that had been deployed on the Base blockchain just three hours earlier. However, by the time the warning was issued, the token had already plummeted in value.
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The deployer of the SQUID token was found to be the largest holder, a common characteristic of pump-and-dump schemes, where the scammer manipulates the market by artificially inflating the token’s value before dumping it, leaving unsuspecting investors with worthless coins.
The SQUID token had initially caught the attention of many crypto enthusiasts due to its name, which capitalized on the immense popularity of Squid Game. This was not the first time scammers have attempted to exploit the show’s success for financial gain.
The original Squid Game token, which was launched last year, was another notorious example of a pump-and-dump scam that collapsed, resulting in significant losses for investors.
Despite the well-known risks in the cryptocurrency space, scams continue to deceive people, especially those looking to capitalize on trending topics like Squid Game. Scammers often use popular shows or events to create a false sense of legitimacy for fraudulent tokens.
In this case, while the SQUID token had no official connection to the Squid Game series, its name and timing made it appear legitimate to many investors eager to get in on the action.
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