What's Driving Token Prices? November 30, 2022

Katie Talati
Nov 30, 2022

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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  • SRM (-10%) - The decentralized finance project on Solana, Serum, officially announced yesterday that it was folding following the downfall of FTX. The project, backed mainly by FTX, believes its security and future are compromised. FTX held the private keys to make upgrades to the contract, which may have been stolen during the FTX hack on November 11th. Apparently, developers have decided to scrap the use of the native SRM token with the exposure to FTX and Alameda. However, the Serum project is not completely gone and has supported the use of OpenBook—a fork of the project that is widely supported in the community.

  • AAVE (+14%) - Last week, Aave saw the hacker Avi Eisenberg (who previously exploited a similar flaw in Mango Markets lending protocol) take advantage of Aave by borrowing massive amounts of CRV, leaving the protocol with $1.5M of bad debt. As a result, the community voted to freeze 17 assets in Aave’s lending market to prevent further bad debt from accruing to the protocol. The frozen assets, which include Curve, 1inch, and Yearn Finance, will likely become available again after Aave completes its v3 upgrade.

  • APE (+17%) - Apecoin officially announced that its staking program would go live next week on December 5th. The staking program allows holders of APE tokens and NFT collections Bored Ape Yacht Club, Mutant Ape Yacht Club, and Bored Ape Kennel Club to participate. However, much to the chagrin of the community, U.S. and Canadian users will be blocked from participating in staking via the staking website interface. Many have speculated that this is in reaction to the SEC’s probe into Yuga Labs last month.


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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