If you’re a fan wanting to express your devotion to the hit Korean Netflix show Squid Game, well, there’s a cryptocurrency for that.
Players have created an online version of the program, for which you need the Squid cryptocurrency to play. On Tuesday, it was worth a modest 1 cent, but by Friday it had exploded in value, hitting $ 4.39 (£ 3.18). But Squid has come under fire for not allowing investors to resell its tokens. The dystopian series, which tells the story of a group of people forced to play deadly childhood games for money, has become a viral sensation. More importantly, we apparently do not provide deadly consequences.
Squid is what is known as a “play to win” cryptocurrency, where people buy tokens to play in online games where they can win more tokens. These can then be exchanged for other cryptocurrencies or fiat money. In Squid’s case, many buyers will be gamers looking to play the show’s online game, which begins in November. The more people who join, the higher the reward,” according to the issuance document, which says developers will take 10% of the entry fee and the remaining 90% will go to the winner.
Individual rounds have costs to join, for example playing Round 1: Red Light, Green Light will cost a player 456 Squid, with six rounds in total getting more expensive as they go. But prospective buyers should beware of cryptocurrency price tracking website CoinMarketCap issuing a warning that many users have been unable to resell their tokens on cryptocurrency exchanges. Its market capitalization, or total volume in the market, has reached $ 184 million (£ 133 million).
A trader told the BBC on Twitter that they have $ 7,500 (£ 5,442) tied up in the coin that they expect to be released in 48 hours. It is not clear why this is happening, but the company says it is using “innovative” anti-dumping technology that limits people from selling their coins if not enough coins are bought from the market. The company did not immediately respond to the BBC’s request for clarification. This cryptocurrency joins a long and growing list of digital coins
Surprisingly, many of these currencies quickly grab investors’ attention, leading to wildly inflated valuations. Naive retail investors who get caught up in such frenzied speculation face the risk of substantial losses and tokens that are combined with random memes or cultural phenomena,” Cornell University economist Eswar Prasad told the BBC.