What's Driving Token Prices? March 29, 2023

Katie Talati
Mar 29, 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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  • ARB(-90%) - The long-awaited Arbitrum token airdrop launched last with 11.6% of supply going to users and 1.1% to Arbitrum project DAOs. Specifically, TreasureDAO and GMX saw the largest airdrop allocations with 8m tokens each. These tokens are given to these projects to distribute at their own discretion which has continued to keep activity on Arbitrum projects high following the airdrop. TVL has held up well at $2.2b, increasing from $1.5b over the last 2 weeks.

  • BNB (-1%) - The CFTC announced yesterday it was suing centralized exchange Binance for “willful evasion” of US laws and offering unregistered derivative products to customers. The announcement brought down not just the price of Binance’s token, BNB, but also the price of Bitcoin and other crypto assets. Binace has since refuted the claims and ascertains that they have been fully cooperative and compliant with regulators. This will likely be a long legal battle that will be drawn out over many months.

  • SUSHI (+3.3%) - Decentralized exchange Sushiswap received a subpoena from the SEC last week. The team posted a proposal announcing the subpoena and their plans to cooperate. The proposal outlined that the protocol would allocate $3m USDT to a defense fund. No other details regarding the subpoena were released and the team has said they will not comment on the ongoing investigation.

  • ROOK (+91%) - Decentralized MEV provider KeeperDAO has faced a governance debacle in the last week. As the protocol has seen shrinking metrics compared to its competitor, Flashbots, the token price has fallen far below book value of the treasury. Following little transparency from the core team or progress, token holders decided to approach management and propose redistributing value to the community. There are currently two proposals under discussion, one to dissolve the DAO and shutter the project, the other to spin-off the DAO off with most of the treasury dissolved and a portion set aside for the project to continue building. Both proposals have been met with pushback and problems including the team insisting ROOK holders have no governance rights. The saga is still unfolding.

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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