FTX-backed Projects Plunge as ‘Sam Coins’ Underperform

Projects pay the price for accepting SBF’s blessing as their tokens plummet


JK2507/RomoloTavani/Shutterstock modified by Blockworks


The collateral damage caused by Sam Bankman-Fried’s downfall continued Wednesday as tokens the disgraced FTX founder has backed slid further. 

Here’s what’s going on with four major Bankman-Fried-backed projects and their related digital assets, including FTX’s own native token, FTT, as the former chief executive of the crypto exchange awaits trial — out on bail and living with his parents in California. 

Blockworks Graphic by David Canellis


Bankman-Fried was a main backer of the smart contracts-focused protocol Solana, whose native token, SOL, is down almost 95% against the dollar year-to-date. FTX had purchased more than 58 million SOL tokens from the Solana Foundation and Solana Labs starting in August 2020, according to the now-bankrupt exchange. 

SOL lost as much as 12% on Wednesday as traders fretted over large holders selling positions. The token is down almost 65% over the past three months versus bitcoin. 


SRM, the protocol Serum’s native token, was a large position on Alameda Research’s balance sheet, valued at $2.2 billion before the proprietary trading firm’s collapse. The company minted a cumulative 100 million SRM between February and May 2022, increasing the token’s total supply by some 60%. 

SRM is down more than 96% against the dollar this year — and dropped nearly 5% by early Wednesday afternoon in New York alone before clawing back losses. Compared to bitcoin, the token was down more than 15% over the past week and 33% over the past 3 months. 


Formerly known as Republic Protocol, Ren said in February 2021 that it was “joining” Alameda in a vague blog post written by founder Taiyang Zhang.

“In addition to this renewed focus, the Ren team will also be working with Alameda to continue development on its top-priority: reaching the next phase of [decentralization],” Zhang said at the time. 

The platform, which issues wrapped bitcoin, known as renBTC, said earlier this month it was attempting a redesign, Ren 2.0 in the wake of the FTX crash. Minting has been disabled and burning was closed out Dec. 20 ahead of the launch — which focuses on increasing decentralization and security, the company said. 

The token was down more than 40% relative to the dollar over the last three months— and more than 33% in relation to bitcoin. REN has booked a slight rebound this week, though, with the coin rallying about 5.5% over the past seven days.


FTX’s native FTT token held a prominent position on Alameda’s balance sheet, which contributed to November’s mass sell-off as investors parsed emerging details of the relationship between Bankman-Fried’s prop trading firm and his exchange. 

The token is now down about 95% over the past three months. Last week, it dipped below $1 for the first time — and has remained there since. FTT was sitting around $0.89 Wednesday afternoon. 
FTX, now proceeding with its Chapter 11 bankruptcy filing, is now also up against SEC scrutiny: The regulator deemed FTT a security in a December filing.


Upcoming Events

recent research

l1 cover.png


This analysis focuses on financial metrics for general-purpose L1 blockchains. In many ways, L1s should be viewed as an entirely new asset class more comparable to digital economies than traditional businesses. L1s are the core infrastructure enabling the creation of new-age businesses like onchain protocols.


As VanEck, Bitwise and ProShares debut ether-linked offerings, industry watchers say marketing will be a key to success


Filing comes after the firm’s August court win against the SEC, and as fund groups get set to offer the first ether futures ETFs


The tokenized fund pilot is part of Project Guardian, an industry initiative led by Singapore’s central bank to bring real-world assets onto blockchains


Web3Auth is an MPC wallet-as-a-service firm that powers hundreds of wallets and dapps


Coinbase said it views Singapore as a crucial market for growth of the crypto and Web3 economy


Bitcoin staking can bring economic security to emerging PoS chains