It is not a part of the official franchise, but a new cryptocurrency based on the television series “The Squid Game” is gaining rapidly on the market. The successful Korean show now has its very own brand of cryptocurrency, launched recently with a huge price run-up.
SQUID is trading at $2.22, up nearly 2,400% over the last 24 hours, and its market capitalization is above $174 million. On Tuesday, it was worth a modest 1 cent, but by Friday it had exploded in value, reaching $4.39.
However, those interested in taking part may want to exercise caution before jumping into trading squid. CoinMarketCap has issued a warning, saying that it’s received “multiple reports” that users are not able to sell this token on a popular decentralized exchange.
The dystopian series has become a viral sensation. It tells the story of a group of people forced to play deadly children’s games for money. Gamers have created an online version of the program, for which you need the Squid cryptocurrency to play.
Squid cryptocurrency made for “play to earn”
Squid is what is known as a “play-to-earn” cryptocurrency, where people buy tokens to play in online games where they can earn more tokens. These can then be exchanged for other cryptocurrencies, or fiat money.
The coin started its presale Oct. 20 and apparently “sold out in one second,” joining a list of other parody cryptocurrencies that have witnessed big run-ups for no particular reason, other than good publicity.
The online Squid Game tournament, which launches in November, mimics the six rounds of games featured in its namesake TV show. But unlike its Netflix counterpart, the company said “we do not provide deadly consequences apparently!”
Also unlike the series, which capped the grand prize at $38.5 million for the final winner, this virtual simulation of Squid Game will limit neither the maximum of the final bonus, nor the number of participants.
More gamers, larger reward pool
“The more people join, the larger the reward pool will be,” according to the issue documentation. The announcement also says that developers will take 10% of the entry fee with the remaining 90% given to the winner.
Individual rounds have costs to join. For example, playing Round 1: Red Light, Green Light will cost a player 456 Squid. There are six rounds in total, and they become more expensive as they go along.
Game entry doesn’t come cheap either, especially at current prices. If you want to take part in the final game of the tournament, you’ll have to pay 15,000 squid, or $33,450. But Squid has been criticized for not allowing investors to resell their tokens.
It is unclear why some users are unable to sell their tokens. But the white paper describing the coin does lay out an anti-dumping technology; this prevents people from selling their coins if certain conditions are not met.
Play-to-earn games have grown increasingly popular during the pandemic. The surge in online gaming encouraged the development of the entire GameFi technology sector. This combines entertainment with real tools for earning money.