- Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison for fraud.
- Memecoins like Sam Baseman Fraud reflect the trend of tokens with a current theme.
In a major development, former FTX CEO Sam Bankman-Fried has been sentenced to 25 years in prison for fraud, marking a historic moment for the market. Amid this turmoil, a memecoin called Sam Baseman Fraud, with the ticker FTX, was launched on the Coinbase layer-2 network Base just hours before the sentencing.
Furthermore, data from DexScreener showed that the FTX memecoin rose more than 23,300% in just seven hours, reaching a peak market cap of $1.5 million on March 28. However, typical of many memecoins, it quickly dropped by more than 85% within three hours.
Making the same comment on this, @CryptoPatel a technical analyst, emphasizes,
“As a result of the billions in misuse, both FTX and Alameda Research collapsed, marking one of the most dramatic collapses in crypto history.”
The rise of SBF memecoin
Shortly after the conviction, another SBF-themed memecoin, Som Bonkmon Fraud, appeared on Solana [SOL]. It rose to a market cap of $20 million, an increase of 18,000% from its launch value of $30,000, but then fell by more than 95%.
It is currently trading around $0.0008, slightly above the coin’s initial listing price.
Mocking the scenario, @CryptoRand noted,
“Facts when #SBF will be released in 2049:
– The mining reward of $BTC is 0.04882812
– He would have missed at least six more bull markets
– The #BTC whitepaper is said to be 40 years old
– SBF is said to have eaten 54,750 cucumbers in prison
– $ETH gas fees will still be $13725 per TX”
Solana’s memecoin wave
The rise of Bankman-Fried-themed memecoins reflects the trend of current memecoins inspired by crypto and political figures, such as Boden and Tremp, capitalizing on the US election hype.
The trend gained momentum with Solana’s Dog Wif Hat (WIF), which rose from $50,000 to $3.5 billion in four months.
All this has resulted in Solana’s memecoin wave, driven by its low fees and high throughput. This resulted in a Total Value Locked (TVL) of over $4.5 billion, rivaling Ethereum’s meme coin dominance.
In short, memecoins like Bankman-Fried themed tokens thrive on hype rather than real value. Therefore, as the memecoin craze continues, investors should proceed cautiously and evaluate fundamentals before diving into these speculative assets.