SBF-Related Meme Coin Pumps and Dumps Following his 25-Year Prison Sentence: Details

The NFT Unicorn SBF-MEME_CB SBF-Related Meme Coin Pumps and Dumps Following his 25-Year Prison Sentence: Details Crypto News

TL;DR

  • Sam Bankman-Fried’s 25-year prison sentence sparked the creation of some meme coins like “Sam Baseman Fraud (FTX).”
  • This phenomenon underscores the crypto community’s habit of launching meme coins tied to major news events, albeit with a cautionary note on their high volatility and investment risks.

Sam Bankman-Fried, the founder and former CEO of the notorious cryptocurrency exchange FTX, received a 25-year prison sentence earlier this week. He was found guilty of committing fraud and other criminal activities, which were among the reasons that led to the collapse of the company and the subsequent multi-billion dollar investor losses.

Interestingly, Judge Kaplan’s decision was followed by the emergence of a rather interesting meme coin, dubbed Sam Baseman-Fraud (FTX). 

The asset’s price exploded by almost 5,000% after the ruling before plummeting significantly in the past few days. According to DexScreener, its market capitalization briefly surged to $1.5 million, while it currently stands at less than $23,000.

The NFT Unicorn svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZpZXdCb3g9IjAgMCAxMzE3IDQ2MCIgd2lkdGg9IjEzMTciIGhlaWdodD0iNDYwIiBkYXRhLXU9Imh0dHBzJTNBJTJGJTJGY3J5cHRvcG90YXRvLmNvbSUyRndwLWNvbnRlbnQlMkZ1cGxvYWRzJTJGMjAyNCUyRjAzJTJGRlRYLVByaWNlLnBuZyIgZGF0YS13PSIxMzE3IiBkYXRhLWg9IjQ2MCIgZGF0YS1iaXA9IiI+PC9zdmc+ SBF-Related Meme Coin Pumps and Dumps Following his 25-Year Prison Sentence: Details Crypto News
FTX Price, Source: DexScreener

Another meme coin related to the 32-year-old American is Sam Bankman-Fraud (SBF). Its valuation skyrocketed by 250% shortly after the sentencing news but later nosedived (similar to FTX’s price).

The emergence of the aforementioned tokens is yet another example showing the wits of some members of the cryptocurrency community who often use popular events as an opportunity to launch new meme coins.

Such was the case after Queen Elizabeth II’s passing in September 2022. Back then, meme coins like “Queen Elizabeth Inu,” “Queen Doge,” “God Save The Queen,” “London Bridge Is Down,” and many more appeared on some decentralized blockchain ecosystems. One of the most trending – “Queen Elizabeth Inu” – experienced a price pump of over 11,400%.

The aforementioned examples showcase that dealing with meme coins remains dangerous due to their infamous volatility. If you consider jumping on the bandwagon, please check our dedicated video to avoid some common mistakes related to the matter:

SPECIAL OFFER (Sponsored)

LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

Source: CryptoPotato