FTX-backed Projects Plunge as ‘Sam Coins’ Underperform

FTX-backed Projects Plunge as ‘Sam Coins’ Underperform

The collateral damage caused by the fall of Sam Bankman-Fried continued on Wednesday as the tokens backed by the disgraced FTX founder were further reduced, FTT, as the former cryptocurrency exchange CEO awaits trial, is out on bail and lives in California with his parents.

SOL 

Bankman-Fried has been a vital supporter of the intelligent contract-focused Solana protocol, whose native token, SOL, is down nearly 95% year-to-date against the dollar. As of August 2020, FTX had purchased more than 58 million SOL tokens from the Solana Foundation and Solana Labs, according to the now-bankrupt exchange. SOL was down as much as 12% on Wednesday as traders worried about short positions from significant holders. The token is down nearly 65% ​​against Bitcoin over the past three months.

SRM

SRM, the native token of the Serum Protocol, had a significant position on Alameda Research’s balance sheet, which was valued at $2.2 billion before the proprietary trading company’s collapse. Supply by 60%. SRM is down more than 96% against the dollar this year, falling nearly 5% in New York alone on Wednesday afternoon before recouping losses. Compared to Bitcoin, the token is down more than 15%. In the last week and 33% in the previous 3 months.

REN 

Ren, formerly known as Republic Protocol, said in February 2021 in a vague blog post by founder Taiyang Zhang that he would “join” Alameda. In addition to this redoubled effort, Zhang stated at the time, “Ren’s team will also collaborate with Alameda to continue development at their highest priority: achieving the next phase of [decentralization].” the platform that issues packaged Bitcoin, known as renBTC, said Earlier this month that it’s trying to redesign Ren 2.0 after the 

 FTX crashed, embossing was disabled, and burning was closed in December.

20 ahead of launch, which focuses on increasing decentralization and security, the company said. The token is down over 40% against the dollar and over 33% against bitcoin over the past three months. However, REN has slightly recovered this week as the coin is up 5.5% over the past seven days.

FTT 

FTX’s native FTT token took a prominent position on Alameda’s balance sheet, contributing to November’s sell-off as investors scrutinized the looming details of the relationship between Bankman-Fried’s backing trading firm and its exchange. The token is now down around 95% over the past three months. It fell below $1 for the first-time last week and has stayed there ever since. The FTT was around $0.89 as of Wednesday afternoon.

FTX, which is now pursuing its Chapter 11 bankruptcy filing, also faces SEC scrutiny: regulators considered FTT security in a December filing.

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