The price of a new cryptocurrency inspired by the hit Netflix series “Squid Game” soared 40,000% in its first days of trading.
At 7:45 a.m. on Friday, the “Squid Game” token, SQUID, stood at $ 5.41, down from $ 0.01235 when it started trading on Tuesday, according to CoinMarketCap.
The relatively obscure crypto has risen over 200% in the past 24 hours and now commands a market cap of over $ 419 million.
While the rapid surge in prices can be tempting for traders, CoinMarketCap warns on its site that some people appear not to be able to sell the coin once they buy it.
âWe have received several reports that users are unable to sell this token in Pancakeswap. Please use caution when negotiating! CoinMarketCap cautions. Pancakeswap is a popular decentralized cryptocurrency exchange.
The show could be linked to an “anti-dumping mechanism” that the creators of the play describe in a white paper associated with cryptocurrency.
Like the South Korean show “Squid Game”, in which 456 highly indebted people compete in deadly children’s games for a grand prize of over $ 38 million, the Squid token was launched as a means of ‘buy into Project Squid Game, a up-and-coming crypto platformer game that will culminate with an online tournament next month.
The online tournament will mimic the six rounds of play featured in the hit series, but, as the white paper says, “we’re not offering deadly consequences.”
“Your experience will only reflect the joy of winning rewards and the heartache of losing money when the game has failed,” the white paper says.
Another difference is that the online tournament will not cap the prize money for wins and there will be no maximum number of players.
However, participants will have to pay a predefined amount of the SQUID token in order to participate in each round of the tournament. At the current crypto price, the fee for the last round of the tournament, for example, is around $ 81,000.
The entry fee for each of the rounds is split between the developers, who have said they will take 10 percent, and the rewards pool, which will get the remaining 90 percent.
And throughout the tournament, players will have the opportunity to earn Non-Fungible Tokens, or NFTs, by winning rounds. DTVs also appear to be on sale at the rear of the token site, and they can be traded between competitors.
NFTs provide holders with certain gaming-related benefits, such as free entry to the next round, the token’s white paper says.
NFTs are digital assets that represent the ownership of virtual objects such as computer art and sports highlights. NFT’s transactions are recorded on blockchain technology and powered by collections of code known as smart contracts.
Throughout the game, users will also earn Marbles Tokens which is another reference to the series. These tokens will allow users to eventually sell their SQUID coins and cash them in, according to the white paper.
The new cryptocurrency and the associated online tournament exemplify some of the innovations happening in the crypto space, where blockchain technology is used to create interactive games like this as well as virtual worlds and other playing fields. digital games.
But the peak in value of each of the tokens also underscores just how ripe the emerging industry is for fraud.