What's Driving Token Prices? October 12, 2022

Katie Talati
Oct 12, 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.

Watch Our Founders Video

  • APE (-12%) - In a still unfolding story, Yuga Labs, the creator of Bored Ape Yacht Club and owner of the IP for Cryptopunks and Meebits, is being investigated by the SEC. According to reports, Yuga Labs is facing a probe over whether its digital assets are securities and should be treated like stocks and whether Apecoin, the token for its Otherside Metaverse, should be considered a security. The token traded down almost 12% on the news.

  • BNB (-8.8%) - Binance Smart Chain, the Layer 1 protocol created by exchange Binance, suffered a $600M exploit last Thursday. Unsurprisingly, Binance's bridge, the BSC Token hub, was attacked. During this time, the attacker minted 2 million new BNB tokens (worth ~$570M at the time), deposited the BNB as collateral on Venus (lend/borrow protocol), and withdrew stablecoins which were then sent to other chains, including Ethereum and Fantom. Thankfully, BSC validators paused the network, which stopped further withdrawals and allowed recovery of a large majority of the assets. The attacker got away with about $100M in assets.

  • MKR (+17%) - Decentralized stablecoin issuer MakerDAO last week invested $500M of its balance sheet into U.S. treasuries and corporate bonds. Maker converted $500M worth of DAI to make the purchase to diversify their balance sheet and revenue lines while spreading the usage of DAI in traditional financial markets.

  • HT (+30%) - Huobi exchange founder Leon Li sold his entire stake in the exchange to About Capital. According to reports, the investment fund is majority funded by Justin Sun, founder of Layer 1 protocol Tron. Although Sun has refuted allegations that he is not the owner of the new stake in Huobi, he has been appointed to Huobi’s Global Advisory Board. For context, Huobi commands 2% of the overall centralized exchange market and did $64B in volumes in the last month. Huobi token soared on the news, up almost 30% on the week, while Tron has barely reacted, down 1.2% for the week.

DISCLAIMER: This commentary is not intended to be investment advice, investment research, or a recommendation. Please consult your investment professional for your own circumstances."


Subscribe For the Latest Blockchain News & Analysis



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.

You May Also Like

These Stories on Investing Themes