What's Driving Token Prices? June 14, 2023

Katie Talati
Jun 14, 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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  • SOL/ADA/MATIC (-20%/-16%/-15%) - Following last week’s legal cases against Coinbase and Binance, Robinhood announced on Friday it would delist Solana (SOL), Cardano (ADA) and Polygon (MATIC). The tokens will no longer be available for trading, and users' tokens will be automatically liquidated if tokenholders do not remove their tokens from the exchange by June 27, 2023. While there was no initial impact from the announcement, the market began to sell off in a big way Friday evening based on this news. SOL, ADA and MATIC were the worst performers down 20%, 16% and 15% respectively.

  • CRV (-19%) - Last week, three prominent venture capital firms launched a lawsuit against Michael Egorov, the founder of Defi protocol Curve. The three firms: ParaFi, Framework Ventures, and 1kx, claimed that they funded the Curve project in 2020 prior to its launch but never received their allocation of tokens or equity. The suit also claims that after accepting $1m in cash, Egorov used that cash to provide liquidity on CRV in order to personally receive a large number of CRV tokens that are now worth a small fortune. The suit will likely take several years as there is another ongoing lawsuit regarding the same issue in Switzerland.

  • MATIC (-16%) - Layer-2 scaling solution, Polygon, announced plans on Monday for its Polygon v2 upgrade that will be rolling out in stages over the coming months. Although details of their v2 upgrade are brief, it alludes to a scaling architecture similar to Optimism’s OPStack. The announcement was heavily teased on social media with many market participants expecting it to be an airdrop. Although news of the v2 was not as exciting, MATIC managed to reverse its decline following the Robinhood delisting.

  • XRP (-2.9%) - The market has been waiting anxiously for yesterday’s release of the Hinman documents since it could have a material impact on Ripple’s status as a security. Ripple has been engaged in a legal battle with the SEC for the past year over classifying XRP as a security. Recently, Ripple’s legal team pushed for the release of the Hinman documents, which they believed contained comments that ETH, XRP and other digital assets are not securities. The documents released yesterday are only marginally positive for XRP since the basis for the SEC’s case is predicated on Hinman’s 2018 speech only reflecting his opinion and not SEC’s.

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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