What's Driving Token Prices? November 29, 2023

Katie Talati
Nov 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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  • TORN (-53%) - Tornado Cash, the decentralized mixing service, saw its token delisted from Binance on Monday, sending its price down -53%. The delisting is likely due to part of Binance’s promise to “right the ship” following last week’s settlement with the DOJ. Tornado Cash has long been a law enforcement target as criminals use the services to wash stolen coins to avoid tracking essentially. One way Tornado Cash can be used is laundering assets, but many others use the service for general privacy since user wallets can be tracked and tagged. Tornado Cash was the only privacy technology available on the market, and with the DOJ enforcement action, there is a dire need for new digital assets privacy services.
  • KNC (-5.9%) - Last week, DEX protocol, Kyber Network, suffered an exploit of over $50M across the Abritrum, Optimism, Ethereum, Polygon and Base networks. Details of the exploit are still unknown, but the Kyber team has already offered a 10% bounty to the hacker for returning funds. 
  • TON (-0.4%) - Yesterday, gaming-focused venture capital firm, Animoca Brands, announced that it invested in the TON ecosystem, which will provide gaming apps, and will also become a validator on the network. The team behind the messaging app, Telegram, created Toncoin, previously known as The Open Network. Toncoin recently resurfaced with a renewed focus on gaming following its legal settlement over its 2018 ICO. The hope is that Telegram’s 800M+ users will bring a lot of eyeballs to Toncoin’s upcoming gaming apps.
  • ILV (+6.3%) - Web 3 gaming studio, Illuvium, launched its first game, Illuvium Arena, to the public yesterday. It is available on the Epic Games store, the second largest game distribution channel. Illuvium, co-founded by Kieran, Aaron and Grant Warwick (brothers of Kain Warwick, the founder of DeFi protocol, Synthetix), has been in production for over two years. The release of this game is a significant milestone for both the studio, and for Immutable-X, the gaming-focused layer-2 that the game is built on. Two additional games, Illuvium Overworld and Illuvium Beyond, are expected to launch in Q1 2024. Unlike Axie Infinity, which features a play-to-earn model, Illuvium’s ILV token can be staked by holders to earn more ILV from in-game revenue.

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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