In a whirlwind of speculative fervor, the cryptocurrency community witnessed a fierce surge in memecoins coinciding with the historic sentencing of Sam Bankman-Fried, former CEO of FTX. Judge Lewis Kaplan’s decision to impose a 25-year prison sentence on Bankman-Fried sent shockwaves through the industry, marking a significant milestone as the first prison sentence for an individual linked to the collapse of a major cryptocurrency exchange.
Within hours of the sentencing, a memecoin titled “Sam Baseman Fraud” emerged on the Coinbase layer-2 network Base, amusingly adopting the ticker symbol “FTX.” This tongue-in-cheek nod to Bankman-Fried’s legal woes quickly captured the attention of speculative investors. The memecoin skyrocketed by an astounding 23,300%, reaching a peak market capitalization of $1.5 million on March 28, according to DexScreener data.
However, the euphoria proved short-lived as the token rapidly shed more than 85% of its value within three hours, exemplifying the volatile nature of memecoin investments. Despite a subsequent stabilization, with the token trading around the $0.06 mark, it remained substantially below its all-time highs, reflecting a 60% decrease.
Solana-based SBF memecoin surges
In a parallel development, the Solana network witnessed the launch of another memecoin, dubbed “Som Bonkmon Fraud,” also themed around Sam Bankman-Fried. Initially, this token surged to a market capitalization of approximately $20 million, representing an astonishing 18,000% increase from its launch value of $30,000.
Nevertheless, mirroring the fate of its counterpart, the SBF memecoin experienced a steep decline, plummeting over 95% from its peak. As of the latest update, the token trades around $0.0008, only marginally above its initial listing price, underscoring the speculative nature and inherent risks associated with memecoin investments.
The emergence of Bankman-Fried-themed memecoins adds to a growing trend of memecoins inspired by crypto and political figureheads. With the upcoming United States election looming, several political memecoins, including Boden and Tremp, have sought to capitalize on the heightened attention surrounding political events.
The resurgence of memecoins gained momentum following the meteoric rise of Dog Wif Hat (WIF). This Solana-based memecoin soared from a market capitalization of approximately $50,000 to $3.5 billion within four months. Other meme tokens, such as the frog-themed Pepe on Ethereum and the rooster-themed Coq Inu (COQ) on Avalanche, have experienced notable rallies.
FTT token dips amidst legal turmoil
The fallout from Bankman-Fried’s sentencing reverberated across the cryptocurrency market, impacting not only memecoins but also established tokens. FTX Token (FTT), the native cryptocurrency of the now-defunct exchange, witnessed a significant decline of more than 16% following the news of Bankman-Fried’s legal troubles, per CoinGecko data.
