It’s no secret that the collapse of crypto exchange FTX – and the behavior of disgraced former CEO Sam Bankman-Fried – catapulted most of the crypto market into the sun. And the coins most closely associated with Bankman-Fried are, unsurprisingly, the hardest hit.
These coins – including the FTX (FTT), Solana (SOL), Serum (SRM), Maps.me (MAPS) and Oxygen (OXY) exchange token – have been dubbed “Sam coins” for obvious reasons: the most came from projects supported or created by Bankman-Fried, FTX or Alameda Research, the trading company Bankman-Fried was also founded.
“It’s pretty clear that the failure of FTX caused an increase in risk aversion, with investors rushing like a herd of wildebeest to offload as much risk as they could in any way possible, including the rise of self-custody,” Ryan Shea, crypto economist at Trakx, recounts Fortune.
FTT has dropped 95% in the past 30 days, according to CoinGecko. It is currently trading at around $1.29, down 98% from its September 2021 all-time high of $84.
FTT, which was apparently misused by Bankman-Fried and Alameda CEO Caroline Ellison, was at the center of FTX’s collapse. CoinDesk reports revealed that as of June 30, Alameda had $3.66 billion in “FTT unlocked” and $2.16 billion in “FTT collateral” on its balance sheet. In turn, its crash is not surprising, but it is devastating for investors.
SOL was another victim of the FTX-Alameda-SBF mess. Solana, its ecosystem and its token have been strongly supported by all three. The exchange alone held $982 million in SOL, according to an FTX balance sheet shared with investors just before the company filed for bankruptcy in November.
The cryptocurrency has fallen 58% in the past month, now trading at around $13.60.
But “SOL was not entirely dependent on Alameda [and] FTX, although they are a major backer, and the market seems to be pricing that in as well,” said Nansen’s Andrew Thurman. “While some projects may be in limbo, the Solana ecosystem is already beyond Sam’s influence.”
SRM, the token of Serum, a “decentralized” exchange based in Solana and created by Bankman-Fried, has fallen by 69% in the last 30 days.
MAPS and OXY, the tokens of two DeFi projects in which Alameda has invested, fell 78% and 46% respectively during the same period.
“It is unclear if any of these projects will continue to operate without the FTX [and] Alameda’s support, and their price action reflects that,” Thurman said. “The market is still sifting through the wreckage here and trying to figure out how to value these assets after their biggest boosters collapse.”
Besides “Sam coins”, notable cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) also suffered. Bitcoin is currently trading at around $16,000, while Ether is around $1,275.
“The most visible manifestation of risk aversion,” Shea said, “is the fall in crypto prices, with major tokens such as Bitcoin and Ethereum down 15-20%, meaning the Crypto Winter has been extended.”
“One thing that has weighed – and will continue to weigh – on the sentiment,” Shea added, “is the fact that people have no real idea where the ‘bodies are buried’ – I mean these vulnerable companies given the fall in crypto prices due to substantial exposures directly or indirectly to FTX, and/or because they have adopted similar practices.
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