Even tokens that tanked last year due to their reliance on discredited businessman Sam Bankman-Fried have rallied as the cryptocurrency rebound has gained such strong speculative momentum. This month, some individuals saw their earnings double.
Despite questions about their viability following Bankman-Fried’s arrest on allegations including fraud, companies like FTT, Serum, Solana, Maps, and Oxygen have grown. Until the latter imploded, FTT was his FTX exchange’s token. According to CoinGecko data, it increased by 160% in January after losing almost all its value in 2022.
During a wider $250 billion cryptocurrency market rebound from last year’s collapse, these so-called “Sam Coins” have soared. The climb continues from bitcoin to tokens linked to artificial intelligence projects, virtual reality property, and gaming.
The gatherings signify a comeback in dangerous bets on high-interest-rate rises ending in global markets. The vital issue is whether the year’s excellent start will continue or if it will be a frightening false dawn.
“Sam Coins” Join the Rally
$80 used to be the value of FTT. By the end of last year, it had slid below $1.00, now over $2.10. In anticipation that resuming FTX is one strategy for the administrators in charge of the company’s bankruptcy, the divisive token received a boost last week.
Solana, once regarded as a competitor to Ethereum, has received high-profile sponsorship from Bankman-Fried. The future of Solana is uncertain. Nonetheless, by the end of December, its linked token had soared to $24 from $10.
Bankman-Fried’s defunct company of enterprises sponsored a cryptocurrency token called serum, which was linked to a decentralized crypto exchange. In three weeks, it has risen to $43 US cents. When the crypto market was in a massive bubble in 2021, it reached almost $12.
Oxygen is linked to a decentralized finance protocol, whereas Maps is linked to a navigation service. In January, they climbed by more than 50%, but they remain a tiny fraction of their peak 2021 levels. Bankman-Fried supported both projects.
Brace Yourselves – Significant Risks Are Still on The Horizon
Another risk is the chance of persistent inflation, which would push interest rates higher than expected for longer. Risk appetite is sapped as a result of this. The spread of FTX’s wipeout is another concern. The bankruptcy of Genesis Global Holdco LLC, a crypto lender, is the most recent example.
It appears that digital-asset markets are taking a break to figure out what’s next. By Monday 6:50 a.m., the largest 100 coins were barely altered. Meanwhile, at roughly $22,785 per token, bitcoin remained stable.
Since 2013, the best gain for the first month of the year has been 37% for bitcoin in January. According to CoinGecko, this aided in the crypto token’s aggregate value surpassing $1 trillion.
