What's Driving Token Prices? January 11, 2023

Katie Talati
Jan 11, 2023

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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  • HT/TRX (-7% and +1.4%) - Late last week the rumor mill began flying on Twitter that centralized exchange Huobi was experiencing issues following reported layoffs (about 20%), a shutdown of staff internal communications channels, and massive withdrawals from the exchange. In response to the instability, Justin Sun, the founder of layer-1 blockchain Tron and an owner/board member of Huobi, transferred $100m in stablecoins of his own money to Huobi in a move to instill confidence in the exchange. It is unclear if the internal issues have been resolved but Huobi has seen over $100m in outflows in the last 7 days.

  • LOOKS (+3.2%) - NFT marketplace Looksrare has been struggling significantly as of late since the launch of rival marketplace Blur. The LooksRare founder posted an announcement yesterday regarding the V2 launch of the protocol which will include an aggregator and mobile platform. It will also be adding utility to $LOOKS via payments, mint opportunities, and more. While NFT trading volumes have fallen significantly since their highs in February 2022, they posted $1.1b in total volume in December with Blur commanding 47% of that volume while Looksrare has slipped to 11%.

  • GALA (+112%) - Blockchain-based gaming project Gala Games has soared in the last week after what many thought was a simple short squeeze. In fact the project has had several positive announcements the past few days including hiring the ex-head designer of Farmville, acquiring a mobile gaming studio with 20m users, and would be shifting their tokenomics model from “play-to-earn” to more of a gas fee model. 

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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