Squid Game – Gaming NFT’s Can Be A Value Trap

The craze for meme coin is surging and Squid Game token is the latest example of it. To draw the parallel with the stock market, meme coin/tokens are just like penny stock. The currency has surged thousands of percentages since its launch. As on 29th October, the price of one Squid Game is equivalent to USD 7.79 as against the launch price of USD.01282 on 26th October and the total supply of SQUID is 800,000,000.

Decentralised gaming is opening a new possibility in the Gaming World.  Squid serves as an example of token where investor may make or lose money depending on the success of the game. The real test for sustenance of the Squid value will depend on the widespread adoption of Squid gaming applications. The token will be dependent on the commercial viability of the game. Earlier the Valve Corporation, whose streaming platform ‘Steam’ is in the business of digital distribution of video games has put a ban on games with nonfungible tokens (NFT’s) driven by its concerns around the real-world value of NFT’s.

Squid Game is a popular south Korean show streaming on Netflix. It is Created by Hwang Dong- hyuk and starring Lee Jung – Jae, Park Hae-soo, Wi Ha-jun. The show is themed around the situation where hundreds of cash-strapped players, pushed by their economic condition, accept a strange invitation to compete in children’s games, which has a huge cash reward and stakes are deadly.

Game is designed based on the popular series and have  a crypto token attached to it, that is required to be purchased by the people who intend to play the game.  Squid Game Protocol is a NFT built on Binance Smart Chain, for elevating trading experience. Players earn compounding rewards in Binance USD (BUSD) i.e.  USD-denominated stablecoin approved by the New York State Department of Financial Services (NYDFS) at the end of every round, along with chance at claiming the big prize pot with every purchase.

Game has six level and survivors in the game will reach to the next level. Players have to purchase the token. Entry Level for Level 1 is 456 SQUID, which is equivalent to over USD 3500. Entry fee for 6th level is 15000 SQUID, which is equivalent to over USD 1,15,000. Project will have five series of token having different functionality, which can be traded as well as used at different points in the game.  

Squid has inbuilt anti-dumping mechanism. According to the warning issued by CoinMarketCap, the holders of the token are not able to sell it in Pancakeswap.

Driven by the investor frenzy in meme coins and the growing phenomena of play to earn through NFT, value of lesser-known tokens is surging overnight to brutally unrealistic levels. If the gaming applications fails to scale up due to tough competitions from peers the value of NFT’s may erode substantially or even may become junk, which may lead to substantial loss to investors.

Bureau Galactik Views

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