- New memecoins “Sam Baseman Fraud” and “Som Bonkmon Fraud” launched around Sam Bankman-Fried’s sentencing, quickly pumping over 18,000% before crashing over 85-95%.
- FTX Token (FTT) plunged over 16% on news of Bankman-Fried’s historic 25-year prison sentence, the first for the FTX collapse.
- The memecoin mania demonstrated the speculative nature of these assets often lacking underlying value or utility.
Sam Bankman-Fried, the former CEO of the now-defunct crypto exchange FTX, was handed a historic 25-year prison sentence on March 28 for fraud. In the hours surrounding his sentencing, some opportunistic developers launched memecoins in Bankman-Fried’s name, leading to a pump and dump in the tokens.
The Launch of the Memecoins
Just a few hours before Bankman-Fried was sentenced, a memecoin called “Sam Baseman Fraud” with the ticker symbol FTX launched on the Coinbase layer-2 network Base. The token quickly rallied over 23,300% to a market capitalization of $15 million before crashing more than 85% within three hours.
Around two hours after the sentencing, another SBF-themed memecoin called “Som Bonkmon Fraud” launched on Solana. This token initially surged to around $20 million market cap, rallying over 18,000% from its launch value of $30,000. However, it soon plunged more than 95% from its high.
The Aftermath
At the time of writing, the two Bankman-Fried memecoins are trading slightly above their initial listed prices after the pumps and dumps. The launches of these tokens represent the latest in a string of memecoins inspired by current events and prominent figures.
Meanwhile, the price of FTX Token (FTT), the native token of FTX, plunged more than 16% on the news of Bankman-Fried’s sentencing. The memecoin mania and subsequent crashes underscore the highly speculative nature of these assets that often offer no underlying value or utility.
Conclusion
The sentencing of Sam Bankman-Fried marked a historic moment, with the disgraced FTX founder becoming the first person to face prison time for the exchange’s collapse. However, some opportunistic developers distracted from the significance of the event by launching memecoins in Bankman-Fried’s name. The pump and dump of the tokens served as just the latest example of how memecoins thrive on hype rather than fundamentals.
