Many so-called Sam coins have made a surprising recovery this month, despite the fact that the FTX crypto exchange is still offline while it goes through bankruptcy proceedings and its former big boss – Sam Bankman Fried – is on trial for various criminal charges, allegedly threatening FTX customers and investors. Including scammers.
As the crypto market has shown signs of excitement over the past few weeks, the value of crypto assets tethered to the now-defunct FTX exchange and promoted by Bankman-Fried has soared.
After Bankman-Fried’s arrest, there were concerns about his survival Sam coinLike FTT, Solana, Oxygen and Map, but their prices have climbed impressively.
Former FTX CEO Sam Bankman-Fried. Image: Euronews
Bankman-Fried’s Sam Sikka steps up
FTX’s parent token, FTT, occupies a significant position on Alameda Research’s (SBF’s cryptocurrency trading firm) balance sheet, fueling November’s major sell-off as investors appraised fresh information on the relationship between Bankman-Fried’s trading arm and FTX.
According to Coingecko data, FTT is up 160% this month after shedding almost all of its value in 2022. The coin is currently trading at $1.93, which is much higher than the current high of $51.68 since late March 2022.
FTT’s price may have been affected by rumors that the platform’s operators were evaluating the possibility of relaunching the troubled ones. FTX.
According to a recent New York Times report, Bankman-Fried worked out a strategy with FTX’s sister company, Alameda Research, to increase the price of certain Sam coins.
In December, FTX was down nearly 95% from the previous three months. The token dipped below $1 for the first time a week ago.
Solana. Image: Binance Academy
SBF’s role in coin price appreciation
Solana, a blockchain ecosystem that received major support from Bankman-Fried, was previously considered a competitor to Ethereum.
SOL rose from Tuesday’s December low of $9.60 to $23.59, close to its $32 average level before FTX’s breakdown.
Like other Sam coins, Oxygen is associated with a decentralized financial protocol, while Maps is associated with navigation services. The values of the two cryptos have risen more than 50 percent this month, though they remain a sliver of their 2021 peaks.
Bankmann-Fried played an important role in raising the value of these lesser known cryptocurrenciesAccording to market watchers.
As a means of ensuring the profitability of FTX and its subsidiaries, SBF reportedly approached the project developers and insisted that they establish their business presence in FTX.
According to accounts, Alameda would then buy some of these newly listed coins at a price they would increase.
Crypto total market cap at $976 billion on the daily chart | Chart: TradingView.com
Growing optimism around Sam Coin
The growing optimism surrounding these SBF-promoted crypto assets mirrors the massive growth in the crypto market. Despite the crypto space’s unpredictable twists and turns, many are left wondering about the promise it holds.
The excitement surrounding these Sam coins indicates, one way or another, a growing appetite for risky investments, which may be fueled by hopes that the US central bank will soon stop raising interest rates.
The volatile crypto landscape lost billions during FTX’s crash, sliding below $1 trillion in value. In November last year, the cryptocurrency exchange faced a cash crunch and sought bailout money.
Rival exchange Binance tried to buy a stake in the company, but decided against.
Featured image from VR Soldier