What's Driving Token Prices? October 19, 2022

Katie Talati
Oct 19, 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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  • MNGO (-23%) - Solana-based lend/borrow protocol Mango Markets suffered a hack of $112M last week. Unlike other recent hacks, this one did not exploit or hack the code or manipulate price oracles or other validators. The hacker used $5M to take a 3.7x levered $18.4M long position in MNGO on Mango's platform. The hacker then pushed up the price of MNGO from $0.038 to $0.91, which was easily done due to low liquidity. As Mango Markets allows users to take a loan out against the "floating PnL" of a position, the hacker was able to withdraw $112M in loans from the protocol based on a $440M inflated MNGO position. Despite Crypto Twitter tracing the hacker's identity, the hacker was still able to request a $47M bug bounty from the Mango DAO and push through a yes vote using the millions of MNGO tokens acquired through the scheme. The DAO also decided to fund the remaining user funds from its treasury.

  • AVAX (-2.8%) - Layer 1 protocol Avalanche released its Banff upgrade, which allows "cross-chain validation." For example, someone could stake AVAX on the Avalanche Mainnet to validate a subnet. Avalanche consists of a base chain and other chains called subnets that allow the protocol to scale transactions. This feature is very similar to Cosmos' interchain security, which brings back some usage and importance to the AVAX token.

  • FTT (-2.3%) - The Texas State Board of Securities announced it would investigate U.S.-based entity FTX US and its founder Sam Bankman-Fried regarding FTX's recent acquisition of Voyager's assets. Primarily, the Texas State Board of Securities is concerned with Voyager's prior yield product and FTX US potentially offering those products to its customers.

  • UNI (+9.4%) - Uniswap Labs, the corporation behind the decentralized exchange Uniswap, announced a $165M fundraise last week. The raise reportedly valued Uniswap at $1.6B and was led by Polychain Capital along with a16z, Paradigm, and Variant. The fresh round of funding will support expanding Uniswap's product lines, which might include NFT trading in the near future.


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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