What's Driving Token Prices? March 29, 2023

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.

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