The new crypto token based on the Netflix hit series Squid Games has seen a rise in the price of upwards of 130,000% since Tuesday 26 October, despite warnings from the world’s most-referenced price-tracking website for crypto assets, CoinMarketCap.
SQUID, as it has been named, is a play-to-earn crypto token developed for gaming in an online version of Squid Games, which will be launched later in November. This token will allow holders to take part in the online Squid Games for a chance to earn more SQUID tokens that can be traded for fiat or other cryptocurrencies.
The token was launched on October 20 with a presale that apparently sold out in 1 second according to its developers. The coin now joins the ranks with other parody cryptocurrencies that have seen massive price fluctuations as of late, such as the meme-inspired Shiba Inu coin which saw an astounding price jump last week.
Following its launch, the SQUID token was trading at a mere 1 cent on Tuesday. By Friday afternoon, the SQUID price had reached a staggering $11.16. On Sunday, the value of a single SQUID token traded at around $37.75. As of today, Monday the 1st of November, a SQUID token is currently valued at around $374 according to the CoinMarketCap price analysis.
CoinMarketCap had issued a warning on its website stating the following: “ We have received multiple reports that users are not able to sell this token in PancakeSwap. Please do your own due diligence and exercise extreme caution. This project, while clearly inspired by the Netflix show of the same name, is not affiliated with the official IP.”
Experts believe that this issue could be related to what the token’s developers call an “anti-dump mechanism”, which was added to discourage users from offloading their tokens.
“As you can see, $SQUID implements an innovative anti-dump mechanism. Buying in the market will release selling credits with a rate of 2:1. $Marbles is the token built on BSC chain as the key for Squid Game. Obtaining Marbles without using violence is the key to Squid Game. Marbles holders will have the right to trade SQUID freely,” according to the creators in a Whitepaper PDF document.
The SQUID token will be used in the Squid Game project, a new online game that’s scheduled to kick off later in November. The creators of the games have assured that no lives will be sacrificed in the online version of squid Games.
“The more people join, the larger the reward pool will be,” according to the white paper. “More importantly, we do not provide deadly consequences apparently! Your experience will only reflect on the joy of winning rewards and sorrow of losing money when the game failed.”
Players will need to obtain a certain amount of SQUID tokens to play the game. Entry fees for the games range from 650 tokens to 15,000. 10% Of the entry fees will be sent to the SQUID developers, and 90% of the entry fees will be added to the prize pool.
Update: The price dropped almost 100%