The collapse of Sam Bankman-Fried’s now bankrupt and possibly fraudulent FTX/Alameda crypto empire in early November triggered catastrophic downside in a number of so-called “Sam coins”. These are a group of cryptocurrencies pertaining to projects/platforms that Bankman-Fried had either championed, been closely tied too, or financially supported, or all three.

FTX’s FTT coin was down as much as 96% in the aftermath of the exchange’s collapse. Bankman Fried’s favorite layer-1 blockchain protocol Solana was at one point down as much as 75%. Meanwhile, Serum, a decentralized exchange built on Solana that Bankman Fried helped set up and FTX used heavily, saw its price collapse as 86%.

Sam Coins Back From the Dead?

Despite the fact that the FTX exchange remains switched off as it passes through bankruptcy proceedings and despite the fact that Sam Bankman Fried is being tried for a litany of criminal offenses, including defrauding FTX customers and investors, many Sam coins have been able to stage a remarkable rebound this month.

At current levels above $2.0 per token, FTT is up 150% from recent lows in the $0.80s. Solana’s SOL token, meanwhile, is up 200% from at current levels in the $24s, having bottomed just under $8.0 in wake of the FTX collapse. Serum’s SRM token is up close to 300% since its post-FTX bottom in late December.

The rebound has in part been triggered by a broader push higher in cryptocurrency markets that has seen the likes of Bitcoin and Ethereum gain close to 40% this month, while a host of more speculative altcoins have also seen bursts higher, a sign of risk appetite returning to crypto.

The narrative in the immediate aftermath of the FTX collapse was that Sam coins should be sold and never touched again. But in wake of the recent rally, investors would be forgiven for asking whether this might be an overly simplistic assessment. Should crypto investors consider getting back into Sam coins?

Should You Buy Sam Coins?

Investors should only consider getting back into Sam coins if the projects can survive on a sustainable basis without Bankman Fried – that means without his investments and without his now-defunct platforms using their project. Solana is probably the best example of a Sam coin that can survive.

Solana remains one of the largest layer-1 blockchain protocols by market capitalization and usage. Despite losing nearly all of its Decentralized Finance (DeFi) trade value locked (TVL), its network showed signs of underlying strength in the aftermath of the FTX collapse.

Activity according to metrics tracking daily active wallets has actually risen substantially since the FTX blow-up, while transactions and active accounts also showed no signs of a decline. SOL/USD is currently changing hands just below a key area of resistance around $25-27. If it can press above, the door is open to a short-term rally toward the pre-FTX highs in the upper $30s per token.

By contrast, FTT is probably worthless given that the FTX exchange might now ever be switched back on and, even if it was, no one would have the confidence to use it anyway after all the alleged fraud.

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