The situation surrounding the MLG token, heavily promoted by Ricky Banks and other FaZe members, led to its sharp decline and Banks' resignation.
MLG Token Collapse and Blame Game
The MLG token, which gained significant popularity in early 2025, suddenly crashed after a brief surge. Investors accused marketers of committing a so-called 'rug pull.' Leaked messages from group chats revealed Banks blaming Adin Ross for the project's failure, stating Ross used him as 'exit liquidity' and criticized him for shifting blame to others.
Issues within FaZe Clan and Ricky Banks' Statement
In response to the backlash, Banks defended himself, asserting that he never sold any of his MLG holdings and invested significantly in the project. He labeled the allegations as false and expressed that the situation was affecting his mental health and career. Shortly after, he officially resigned as CEO of FaZe Clan, leaving the organization without clear leadership.
MLG Token Recovery and Future Outlook
Despite the turmoil, the MLG token rebounded more than 60% within 24 hours of Banks' resignation. Its current price is $0.01382, still 38% below its all-time high. This case highlights the risks associated with blending influencer marketing and the unregulated crypto market.
Such scandals raise questions about trust in projects linked to influencer marketing and the risks within the cryptocurrency industry, potentially resulting in long-term consequences for both investors and participants.
