In the first few days of trade, the Squid Game cryptocurrency skyrockets in value. If you’re a lover of the popular Korean Netflix program Squid Game, there is a cryptocurrency for it.
Gamers have developed an online version of the game, which requires the Squid cryptocurrency.
It was valued less than a penny on Tuesday, but by Friday, it had soared in value, reaching $4.39 (£3.18).
However, Squid has been chastised for prohibiting investors from reselling their tokens.
The dystopian series, which follows a group of individuals who are forced to play lethal children’s games for money, has gone viral.
Squid is a so-called “play-to-earn” cryptocurrency, in which users purchase tokens to use in online games where they may earn more tokens. These may then be converted to other cryptocurrencies or fiat currency.
In the case of Squid, many consumers will be gamers interested in participating in the program’s online game, which launches in November.
“The more individuals that participate, the greater the prize pool will be,” the problem paper states, adding that developers would retain 10% of the entrance fee, with the remaining 90% going to the winner.
“More significantly, we do not seem to impose lethal repercussions!”
Individual rounds have a cost associated with them – for example, participating in Round 1: Red Light, Green Light will cost a player 456 Squid – with a total of six rounds that increase in price as they go.
However, potential purchasers should exercise caution, since cryptocurrency price tracker CoinMarketCap has warned that many users have been unable to resell their tokens on cryptocurrency exchanges. Its market capitalization, or total market volume, has hit $184 million (£133 million).
On Twitter, one trader informed the BBC that they had $7,500 (£5,442) in the currency and are hopeful it would be released within 48 hours.
Although the reason for this is unknown, the corporation claims to be utilizing “innovative” anti-dumping technology that prevents individuals from selling their coins if there are insufficient coins being purchased in the market.
The firm did not immediately reply to a request for clarification from the BBC.
“This cryptocurrency joins a growing number of digital currencies and tokens that are based on random memes or cultural occurrences,” Cornell economist Eswar Prasad told the BBC.
“Surprisingly, many of these coins quickly capture investors’ attention, resulting in drastically inflated prices. Retail investors who get swept up in such speculative frenzy risk suffering significant losses.”
Play-to-earn games: the gaming industry’s future?
Play-to-earn games have risen in popularity over the course of the pandemic, as the explosion in internet gaming has fueled the growth of the GameFi technology industry, which blends enjoyment with real-world money-making opportunities.
Squid Game’s success has benefitted more than cryptocurrency traders. When the show premiered, Netflix experienced an increase in subscribers. Bloomberg reports that the Korean series is estimated to be worth over $900 million to the streaming behemoth, despite its low production cost of $21.4 million.