Squid Game, the most popular show on Netflix is about a deadly tournament of adults playing children’s games in the hopes of winning a big cash prize. Not without some irony, it has already fueled the launch of a few tokens going by the same name. One of them, SQUID, caught the eye of the masses and has resulted in frenzied purchasing with the aim of cashing in on a grand prize.
SQUID was launched as the exclusive coin of the crypto play-to-earn platform with the same name and with the developers claiming that starting in November, players would be able to join the online tournament which follows the show’s plotline with the six rounds of games, but the company already stated “we do not provide deadly consequences apparently!”
The coin started its presale on October 20 and sold out in one second, according to its white paper, which also includes a statement that the token will incorporate anti-dumping technology to prevent people from offloading the token immediately post release in what is commonly know as a pump-and-dump scenario. The paper states people will be prevented from selling their tokens if certain conditions are met.
That may be the reason behind the skyrocketing price of SQUID, which is trading above $11 already, from around $0.12 three days ago, however, excitement at such phenomenal fast gains has quickly turned to frustration with many investors claiming they are unable to now sell the coins, possibly the to “anti-dumping” mechanism which is now looking like more of an “anti-selling” mechanism that is preventing holders from exiting the game.
Coinmarketcap issued the following warning to investors:
“We have received multiple reports that users are not able to sell this token in Pancakeswap. Please do your own due diligence and exercise caution while trading! This project, while clearly inspired by the Netflix show of the same name, is unlikely to be affiliated with the official IP.”
The developers described how the virtual simulation of Squid Game has prizes of its own, but unlike the Netflix show, it wouldn’t limit the maximum of the final bonus nor the number of participants.
The game comes at a preset price in order to participate and on top of that, users are required to purchase a custom-made NFT available for sale on their website, featuring characters from the show such as the guards in full-body reddish-pink suits and black masks.
To play in the final game of the tournament, the price is 15,000 SQUID but the winner(s) will earn 90% of the game’s entry fees which will be deposited in the reward pool. The remaining 10% will go to the developers. SQUID is supposedly also available for cryptocurrency staking where investors can put up their holdings as collateral to earn passive income in an offering called Marbles Pools, a reference to the show.
According to the white paper, SQUID employs a sibling currency called Marbles, which is earned by playing the actual game. Only when investors have some Marbles can they sell any SQUID. And, the amount they sell is limited by the amount of Marbles they own. Investors who don’t own any Marbles are prevented from selling their SQUID at all, forcing them to play.
This presents what appears to be a huge issue. The first game which players can attempt is modeled after the show’s “red light, green light” game. It has a buy-in of 456 SQUID. At its current value of $10.14 per token, that’s a price of over $4,600. As stated in the white paper, players who fail a level lose their wagered SQUID, setting high stakes.
The last level requires a buy-in of 15,000 SQUID to attempt. Many players can’t yet afford to play the first level, meaning they are stuck in a limbo and can’t withdraw their money.
Beyond the mechanics of the game itself, many are skeptical of the developers’ intentions with the token. Investors on Twitter are speculating that the crypto is a scam, based largely on the absence of any social media presence of its developers. The SQUID team has also closed their Discord server and Telegram group. In addition, their official Twitter account is also temporarily restricted.
If it turns out to be real and the market price keeps on rising the way it has been, then the virtual Squid Game will likely only be able to be played by rich gamers, however, at this stage it is unclear whether those who have purchased the token have actually fallen for a classic ICO scam. While it will be extremely disappointing if this does turn out to be nothing more than a rug-pull, at least nobody involved had to risk their lives to chase this potential jackpot!