The intersection of celebrity influence and cryptocurrency continues to make headlines, and few stories spotlight this better than the recent FaZe bank crypto saga. In this article, we’ll introduce FaZe Banks, an influential figure in both esports and the FaZe bank crypto space, and break down the MLG Coin incident—a situation that left investors questioning the security of meme coins and the ever-present threat of a rug pull.
Who Is FaZe Banks?
FaZe Banks, whose real name is Richard Bengtson, is an American entrepreneur, digital influencer, and the co-founder of FaZe Clan—one of the globe’s most prominent esports and entertainment collectives. Since its founding in 2010, FaZe Clan has accumulated millions of dedicated fans and played a pivotal role in advancing the esports industry and shaping influencer-driven content. As CEO, FaZe Banks stood at the center of this revolution, collaborating with top creators and spearheading business initiatives in both gaming and, more recently, the faze bank crypto sector.
What Happened to FaZe Banks and His MLG Coin?
The “faze bank crypto” narrative captured headlines in 2024 with the dramatic launch of MLG Coin—a Solana-based meme cryptocurrency, also popularly known as "360noscope420blazeit" in tribute to gaming lore. The coin received enormous attention on social media, with aggressive promotion from FaZe Banks and streamer Adin Ross. This hype campaign propelled MLG Coin’s market cap from just a few million dollars to nearly $200 million in record time, a pace not uncommon for influencer-backed meme coins in the faze bank crypto universe.
Yet this rapid growth couldn’t last. Shortly after hitting its highest value, MLG Coin’s price crashed to around $12 million. The abrupt downturn triggered serious allegations of a rug pull within the faze bank crypto community. In rug pull scenarios, project insiders are suspected of selling substantial holdings or abandoning the project after securing profits, leaving everyday investors at a loss.
Tensions escalated after leaked messages appeared online, in which FaZe Banks seemed to shift the blame for the coin’s collapse onto Adin Ross, referring to him as “the only bad actor.” This stance was swiftly challenged by the broader faze bank crypto audience and fellow FaZe Clan members such as Nordan “Rain” Shat, who publicly urged FaZe Banks to take responsibility. Amid increasing scrutiny, FaZe Banks officially resigned as FaZe Clan CEO in July 2025, denying deliberate wrongdoing but admitting the controversy was “destroying my life inside and out.”
The MLG Coin saga stands as a high-profile example of the risks associated with influencer-backed projects in the FaZe bank crypto ecosystem and highlights the volatility of contemporary meme coin markets.
What Is a Meme Coin Rug Pull?
A rug pull is a type of scam that frequently affects the FaZe bank crypto world, particularly involving meme coins. These tokens are often launched for entertainment, based on internet trends or influencer hype, and usually lack solid technical fundamentals or development support.
How Does a Rug Pull Work?
Token Creation: Developers launch a new token—like those seen in many faze bank crypto projects—often on decentralized exchanges due to minimal oversight.
Hype and Promotion: Influencers generate excitement through social media campaigns, promising fast gains or revolutionary community-driven aims. Fueled by FOMO, demand and price quickly climb.
Liquidity Accumulation: As more backers join, the token’s liquidity—usually paired to ETH or SOL—grows rapidly.
Exit Strategy: At peak interest, insiders or project leaders liquidate large portions of the liquidity pool or sell off major holdings, causing the price to plummet.
Investor Losses: Everyday investors are left holding drastically devalued or worthless tokens, with developers having exited and no realistic pathway for recovery.
Rug pulls leverages the trust built up through viral marketing in projects like FaZe bank crypto, with unregulated markets making these schemes even more prevalent.
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