What's Driving Token Prices? January 31, 2024

Katie Talati
Jan 31, 2024

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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  • IMGNAI (-6%) - Artificial intelligence project, imgnAI, announced the close of its $1.6M seed round on Monday. The project, which aims to be a platform for uncensored AI image-generated content, found a product/market fit with its free Discord-based image generation product. Its token, IMGNAI, can be used to unlock premium platform features. The round was led by Hack VC, along with dao5, Selini Capital, Rana Capital, West Ham Capital, and Motus Capital. While the news initially buoyed the token price up 26%, it has since fallen and is now down -6% for the week. 
  • SPELL/MIM (-0.33%/-3.8%) - Defi project, Abracadabra, suffered a $6.5M exploit early Tuesday morning causing its decentralized stablecoin, MIM (Magic Internet Money) to crash to $0.76 from $1.00. The exploiter manipulated specific “Cauldrons” (aka vaults) and executed unauthorized MIM borrowing. The Abracadabra DAO already announced plans to buy back MIM in the open market to burn tokens and restore the peg. As of now, the MIM stablecoin is trading at ~$0.96 and SPELL, the governance token for Abracadabra is down 33bps for the week.
  • MANTA (+1.2%) - Layer-2, Manta Network launched its MANTA governance token last week and has become the fourth-largest L2 by TVL on Ethereum. Manta comprises two products, Manta Pacific (the L2) and Manta Atlantic (a Layer-1 built on Polkadot). Manta Pacific has garnered a lot of attention because it is the first project to incorporate Celestia, a data availability infrastructure tool that helps reduce cost, into its tech stack. MANTA was airdropped to the community and was initially met with disappointment as many users complained about receiving a paltry amount of tokens for bridging their assets to the new L2 and completing certain tasks to earn points. Manta’s TVL is currently $603m.
  • WEN (+60%) - Last week, a developer on Jupiter (the Solana-based DEX), decided to launch a memecoin called WEN using Solana’s newly introduced token extension standard and Jupiter’s LFG launchpad platform. The token was airdropped to over a million wallets and primarily served as a test run ahead of Jupiter’s much anticipated JUP airdrop (which occurred this morning). The test run allowed Jupiter to ensure that there would be no hiccups with its token launch and test out a new NFT standard, dubbed the Wen New Standard (WNS). Upon its release last Thursday, the token initially traded up 218% the first few days but has since declined and is now up 60% for the week. 

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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