Oct 29, 2021

Squid Game cryptocurrency value soars!

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.

Squid, which was trading around 1 cent on Tuesday, reached $2.34 (£1.70) on Friday - a more than twenty-fold jump.

Its market capitalisation, or total volume in the market, is $184m (£133m).

The dystopian series - which tells the story of a group of people forced to play deadly children's games for money - has become a viral sensation.

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.

In the case of Squid, many buyers will be gamers looking to play in an online game of the program, which begins in November.

"The more people join, the larger reward pool will be (sic)," according to the platform's whitepaper, which says developers will take 10% of the entry fee with the remaining 90% given to the winner.

"More importantly, we do not provide deadly consequences apparently!"

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 that get more expensive as they go along.

"This cryptocurrency joins a long and growing list of digital coins and tokens that piggyback on random memes or cultural phenomena," Cornell University economist Eswar Prasad told the BBC.

"Remarkably, many such coins rapidly catch investors' fancy, leading to wildly inflated valuations. Naïve retail investors who get caught up in such speculative frenzies face the risk of substantial losses."

(BBC News)

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