With the release of many new Squid Games tokens inspired by the game show, blockchain experts and community members are warning that many of these tokens may be fraudulent or part of rug pull schemes.

The second season of The Squid Games was freshly released on Boxing Day, with the story surrounding a gripping Korean dystopian thriller about individuals in financial desperation competing in life-or-death challenges for a massive cash prize.

Alongside the show’s debut, numerous Squid Game-themed crypto tokens began appearing, drawing attention from fans and investors alike. Unfortunately, while contestants in the show gamble for fortunes, those investing in these tokens might face far worse odds.

PeckShield Alerts Investors to Scam Tokens

On Dec. 27, blockchain security firm PeckShield raised alarms about Squid Game tokens and identified many of these tokens to be fraudulent.

According to the firm, these scam tokens are “circulating in the wild,” posing a risk to unsuspecting investors.

PeckShield flagged one token deployed on Base, noting that its deployer held the largest share of the tokens—a red flag for a potential rug pull. Since its launch, this token has already lost 99% of its value. Similar Squid Game-inspired tokens have also appeared on the Solana blockchain, exhibiting suspicious activity.

Adding to concerns, an X account claiming to represent Squid Game promoted another token. A vigilant community member pointed out that the token’s top holders displayed identical wallet behaviors, suggesting a coordinated scheme to dump tokens once others buy in.

A History of Squid Game Crypto Scams

This isn’t the first time Squid Game tokens have been associated with scams. When the first season of Squid Game aired in 2021, a token with the same name experienced a meteoric rise, gaining over 45,000% in value.

However, reports soon emerged that holders were unable to sell their tokens on PancakeSwap, sparking accusations of a rug pull. CoinMarketCap issued a warning at the time, further fueling skepticism about the token’s legitimacy.

The emergence of these scam tokens underscores the risks of investing in projects tied to popular cultural phenomena. Investors are advised to conduct thorough research, verify token authenticity, and remain cautious of tokens with limited holder distribution or lack of transparency.

While Squid Game may captivate audiences with its thrilling narrative, the associated tokens serve as a sobering reminder of the risks in the crypto space. Stay vigilant and avoid falling victim to schemes that promise high rewards but come with hidden dangers.