Following the utter collapse of the (at the time) seventh-largest cryptocurrency exchange in the world, a group of developers decided to create a new token in protest of the alleged wrongdoings of its then-CEO, Sam Bankman-Fried.
The token SBFP (Sam Bankman-Fried Prison) was created as a lighthearted way to engage with the crypto community — by “betting” if the disgraced CEO will end up in prison or not.
Far from being a HODL token, the SBFP has an expiration date. If they are willing to bet in SBF’s prison, investors have up until the last hour of 2023 to buy the token.
If the former CEO of FTX really does end up in jail by then, the team behind SBFP will burn nearly half of the supply. However, if Bankman-Fried does not go to jail by then, the devs will airdrop the other half among the current holders.
Their home website sbfgoestoprison.com has clear and direct criticisms of the former FTX leader. The team behind the SBFP claims that he is “crypto’s greatest scammer”. They also claim that his close connections to politicians are the only way he won’t end up in jail.
What Happens if SBF Goes To Prison?
By buying the token, holders will literally be betting their money on the likelihood that Bankman-Fried goes to prison. That’s why the idea behind the burning half of the supply is to “award” its holders with a drastic increase in the token’s value.
One of the most significant advantages of token burning is the influence it may have on the value of a cryptocurrency.
The average price per coin will likely rise after a massive burn. The purpose of token burning is to lower a cryptocurrency’s overall supply, hence increasing demand.
What Happens if SBF Doesn’t Get Detained?
In the likelihood that SBF does not end up in prison, this means that the holders of the SBFP guessed wrong.
The “punishment” for betting wrongly means that the token’s value will significantly decrease.
An airdrop means the distribution of tokens to a large number of wallet addresses, in this case for free. When this happens, the overall supply of the asset will double overnight. This means that the demand for tokens will vastly diminish, making the value of the token also drop by a large margin.
