Memecoin Frenzy Ignites Following Sam Bankman-Fried's Historic Sentencing
Summary:
Following the 25-year prison sentence of former FTX CEO Sam Bankman-Fried, memecoin enthusiasts invested heavily into Sam Baseman Fraud and Som Bonkmon Fraud, newly launched tokens named in mockery. The tokens experienced rapid initial growth followed by steep declines, typical of the highly speculative nature of memecoins. This trend coincides with the recent growth of memecoins tied to crypto, political figureheads, and the upcoming U.S. election.
In the wake of the historic jailing of Sam Bankman-Fried, fans of digital novelty coins, or memecoins, have poured their money into a range of tokens that raise eyebrows. Bankman-Fried, the former boss of FTX, received a quarter-century prison term on March 28 following Judge Lewis Kaplan's conviction of him on seven fraud charges. This marked the first prison sentence linked to FTX following the November 2022 collapse of the exchange, one of the most significant failures in American corporate history.
Before the sentence was delivered, a fresh memecoin named Sam Baseman Fraud, playfully featuring the tag FTX, was released on Coinbase's Base second-layer network. According to data from DexScreener, within a mere seven hours, the market value of the FTX memecoin shot up by more than 23,300% to reach a peak of $1.5 million on the same day. However, in true memecoin fashion, it swiftly plummeted over 85% in a three-hour time frame. At the time of reporting, the price of the memecoin stood around $0.06, a 60% drop from its peak value.
Around two hours post-sentencing, a new memecoin inspired by SBF and named Som Bonkmon Fraud made its debut on the Solana (SOL) network. Despite initially seeing its market value multiply more than 18,000%, up to nearly $20 million from its starting value of $30,000, the token experienced a swift drop, decreasing over 95% from its peak. Currently, it fluctuates around $0.0008, barely above its original price.
These Sam Bankman-Fried-inspired memecoins join a growing list of novelty digital coins that draw from the themes of political and crypto influencers. Other politically-themed memecoins like Boden and Tremp have been introduced to leverage the hype around the approaching US election.
The spike experienced by Solana-based Dog Wif Hat (WIF) memecoin, which shot from a market cap of approximately $50,000 to $3.5 billion in just four months, has sparked a resurgence in the memecoin trend. Others, such as the frog-inspired Pepe (PEPE) on Ethereum and the cockerel-themed Coq Inu (COQ) on Avalanche, have also experienced uphill trends. memecoins are wildly speculative investments that frequently possess no actual utility or base valuation, excluding popular interest and hype. Coincidentally, the original FTX Token (FTT) — the digital currency of the shutdown exchange — took a downturn of more than 16%, in response to news of Bankman-Fried's sentence to jail.
Published At
3/29/2024 5:21:03 AM
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