The cryptocurrency market is an exciting place.
Up until a couple of days ago, meme coins such as Shiba Inu (SHIB), Floki Inu (FLOKI), and a ton of other Dogecoin derivatives were popping off charting three-digit increases daily.
Now, it seems that the tokens associated with the game’s business model for winning are the ones taking center stage. CryptoPotato reported yesterday that P2E tokens are surging following Facebook’s announcement that it will be rebranding to Meta. Mark Zuckerberg is on his high horse, it seems, and he’s now dedicated to building the Metaverse.
And while flagship play-to-earn projects such as Axie Infinity, Decentraland, and The Sandbox are charting massive gains, it’s Squid Game’s SQUID token that is up a whopping 110,000% in just five days.
This article takes a closer look at the project and the reasons for its astronomical growth.
What is Squid Game?
Well, the answer to this is twofold. First things first, Squid Game is a new show that aired on Netflix and burst in popularity throughout the entire world. Within weeks, the show became a hot topic of discussion among moviegoers, mostly thanks to its plot.
In the show, 456 people from South Korea, each one of which, with their own hurdles, mostly financial, are chosen to take part in a challenge. They are offered to play six different children’s games (such as Tug O ‘War, Dalgona Candy, Red Light, Green Light and, of course – Squid Game – a popular Korean game for kids), and those who manage to win all six get an astronomical cash reward. The only catch is – if you lose, you’re eliminated. And by eliminated, we mean literally eliminated, as in killed.
Without further spoiling the plot, the series gained popularity around the world. Reports from earlier this month indicated that the show was watched by over 130 million people, and it was expected to create more than $900 million in value for the company.
Getting back to crypto, however, it didn’t take long for a team of developers to take advantage of the growing hype and create a show-centric crypto-based project. Here is the Squid Game project.
It’s apparently intended to be an ecosystem, as there are a whole bunch of things offered to the market, some of which are still under development.
More details about the squid game
The game itself is in development, but some details have already been revealed. Just like on the show, 456 people will be selected through a lottery of all SQUID token holders, and it will be a win-win scenario where the winning person gets all the rewards. Each game has a different entry fee – for instance, the first one requires 456 SQUID, the second one – 1,000 SQUID, and so forth. Winners of the previous round will be eligible for the next level.
There will be six games, each of which mimics the games that were played on the Netflix show.
There’s an NFT marketplace where users are able to buy various non-fungible tokens based on different characters and objects from the series. There’s also a hub for staking certain products and earn rewards.
At first glance, he seems to try to offer a bit of everything, which might be considered a red flag if one follows the saying “jack of all trades but master of nothing”.
The entire platform is underpinned by the SQUID token, which is running on the Binance Smart Chain.
Why has SQUID increased by 110,000% in a few days?
There are a number of factors that need to be taken into account here. Let’s start with the most obvious reason.
Squid Game – the crypto project – came to life relatively soon. In fact, it was listed on CoinMarketCap on October 26th – five days ago. His Twitter account was also created in October, indicating that this is a new project with a token launched on the Binance Smart Chain.
At the same time, the Squid Game – the Netflix show – continues to boom in popularity and is constantly on the trending lists. It’s completely possible that people rushed into the project because of its theme.
Another reason, however, is that it comes with a concept of a game to win. As mentioned earlier, many P2E tokens have increased significantly in recent days, following Facebook’s announcement. It appears that both of these circumstances created a perfect storm for the SQUID token, but something that’s not widely discussed is the headache that it also caused, making the game virtually impossible to play.
With a big price, big problems
As we mentioned above, the basic concept of the Squid game is the actual game – the six kids games that users can play in an attempt to earn massive rewards. Putting aside the fact that it’s still under development, making the decision to buy SQUID questionable at best, there’s an obvious issue that its skyrocketing price creates – a huge barrier to entry.
The first game costs 456 SQUID, which at current prices works out to around $ 6.3,000. The second game costs $14K, and the entries keep going up until the sixth game, which would now cost $210K to play.
This is literally the basic concept of the whole project, and for someone to win they have to pay more or less half a million to just participate.
Time will tell if this project will justify its current valuation, but all facts considered, it looks increasingly hard to do so. Other red flags include a banner on their official website that says Elon Musk the shilling, when in fact he replied to a Twitter thread related to the show and had nothing to do with the project. cryptography itself. Still, it’s easy to see how people could fall for the trap.
