This has been replicated in the NFT market, with a slightly different structure: sell NFTs to yourself to "paint the tape" and create the impression that a hot resale market exists, then sell to random suckers looking for appreciating assets.
(I don't understand NFTs so I may be incorrect on details).
*edited, said “VC” prior
Now if they become worth $1 each and he sells them at that price then it is a taxable event. The threshold may have changed with respect to gifts but if the coins were worth $1 at the time they were initially transferred there may be a taxable event, I think it used to be $50k was tax free.