What's Driving Token Prices? December 7, 2022

Katie Talati
Dec 7, 2022

Join Katie Talati, Arca’s Head of Research, weekly on Wednesday at 4PM EST / 1PM PST as she shares notable token activity over the past week and her insights on what market events drove these token price movements.

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  • MPL (-31%) - One of the largest borrowers on Maple’s uncollateralized lending platform, Orthogonal Trading, defaulted on a $10M loan it was due to pay back over the weekend. As a result, Maple Finance severed all ties with Orthogonal, claiming it had misrepresented its financial status over the last 4 weeks to M11 Capital, the loan underwriter. This has left Maple with $36M of outstanding debt.

  • ANKR (-8.8%) - An exploit rocked the liquid-staking protocol Ankr last week to the tune of $5M. The attacker used an exploit in the liquid staking contract on Ankr to mint trillions of aBNBc (the reward token for staked BNB). After minting these tokens, the hacker sold them across multiple venues, effectively draining all liquidity for the token within the BNB chain and crashing the price of aBNBc by 99%. 

  • NEXO (+0.8%) - Centralized borrow/lend platform Nexo announced it intended to withdraw from the U.S. after being unable to work with regulators. The company specifically will end support for its Earn product in 8 states. The move comes after centralized lenders and “earn” programs have suffered heavily following lending blowups from Celsius, 3AC, and Genesis over the past few months.

  • UNI (+2.6%) - Decentralized exchange Uniswap announced last week that it would launch its NFT trading platform with an interface similar to the look and feel of OpenSea. The trading platform is an aggregator of other NFT platforms and is the result of Uniswap’s acquisition of Genie, an NFT aggregator. So far, the platform has seen just over $1.2M in volume. A proposal was also posted to Uniswap governance proposing a fee switch. However, it only proposes that earnings are retained, not paid out to token holders.


DISCLAIMER: This commentary is not intended to be investment advice, investment research, or a recommendation. Please consult your investment professional for your own circumstances."


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Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services.

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