Squid Game is a Korean survival drama in which contestants who are deeply in debt play children's games in order to win a ton of cash. Those who lose or refuse to comply with the strict rules of the games face a death sentence. It has attracted more than 142 million audiences during its first four weeks from launch and became Netflix’s most-watched series to date. People’s obsession with this Squid Game renders it influential not only in the film industry but also in a rather unexpected area - the cryptocurrency sector of the white-collar blockchain industry.
Devoted fans of the show created an online version of the game, for which participants need the Squid cryptocurrency – SQUID to play. The rules of the online align with the show in which players will go through multiple rather simple games to win big money at the end. Players pay an entry fee, so the reward pool gets larger as more people participate. What’s different about the game online is that gamers only win money tokens and they play without deadly consequences. "Squid Game" popularity spread like wildfire, and so did SQUID. According to CoinMarketCap, SQUID was worth $0.01 cent on Oct.26th and rose to $6.27 on the morning of Oct. 29th – a 62,600% increase.
As the market capitalization of SQUID reached 184 million dollars, questions and concerns were raised. It has been criticized for not allowing investors to resell their tokens. The only explanation given by the company is that “it is using ‘innovative’ anti-dumping technology that limits people from selling their coins if there are not enough coins being bought in the market”. Besides, some experts warn prospective investors that cryptocurrencies that were developed upon speculative frenzies carry a substantial amount of risk since the values of these kinds of cryptocurrencies are bound to fluctuate. For example, people’s obsession with Squid Game will not last forever, and when the passion dies down, investors whose money tokens are tied up in the currency will face a significant loss.
Credit: https://www.bbc.com/news/business-59059097
8 comments:
This is an awesome blog Hanna. From someone who watched and enjoyed Squid Game, I can see how the popularity of the show created a cryptocurrency. The SQUID crypto reminds me a lot like gambling but instead of winning money you win the "SQUID" currency. I can totally see this currency backfire on investors but this could be a new market for people to wage their crypto on the market.
It does not shock me in the slightest that there was a frenzy to buy "SQUID" currency. Very similar to the Dogecoin, people were buying it and pushing the price up until it hit a certain point then dropped right back down about 200%. However, SQUID was pushed up to over $2,800, but minutes later it dropped down below a cent.
Everyone was talking about the TV show, Squid Game. I was surprised when I heard that someone created this cryptocurrency. However, a couple of days ago, this current drop to 0. Many people invested in it due to its popularity on Tik Tok. The lesson, do your own investigation
This is a prime example as to how volatile any form of cryptocurrency is. One blog from a couple weeks back discussed the possibility of cryptocurrency becoming a more steady form of currency. This article demonstrates how investing in cryptocurrency at its current stage in its "life" could be more detrimental to investors and consumers rather than helpful. However, Skosples has discussed many times how markets perform like "animal spirits" and if consumers buy into cryptocurrency it may actually allow it to grow and develop significantly. For now, with not enough interest in investing, it is still too underdeveloped to use as a primary form of currency.
I have seen in the news recently that the price of the crypto currency has plummeted within the last few days, and have been several people who have invested life savings into the crypto currency. It is likely that someone owned a massive amount of the currency, and then sold it all at once, plummeting the market.
I really enjoyed reading this blog. I definitely enjoyed watching Squid Games and am interested in the fact that someone made a crypto for its game. There are many meme cryptocurrency on the market for example Dogecoin, but this one is different as you can't sell it. I definitely wouldn't buy it myself but I can see why it had a big impact in the gaming community.
After all the drama and hype and the scam, it's an interesting outlook on how volatile the crypto market it. I personally believe Cryptocurrency and NFTs are just hype and are bubbles which will burst anytime, just like the 2008 Housing market. And the open system of these markets allow anyone and everyone to create a cryptocurrency and walk away with a lot of money if it's made profitable, like SQUID. The irony is that this scam turned to exactly the way the series turned out. Everyone opted in voluntarily, one (maybe two) person walked away with the "prize", and everyone else were doomed (lost just money here, luckily I guess). Anyways, this only made my views on Crypto stronger.
People usually just jump on the trend to buy cryptocurrency. I think its become more of trend with the rise of things like Dogecoin and SQUID. It definitely is not surprising that it's prices rose up and then fell back down as people realised the limitations of selling. This goes to show how delicate the cryptocurrency market is.
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