What's Driving Token Prices? October 26, 2022

Katie Talati
Oct 26, 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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  • MKR (-23%) - The decentralized stablecoin issuer MakerDao has recently experienced upheaval following MakerDao's founder, Rune, posting a controversial "Endgame" proposal to split Maker into various subDAOs, among other changes. Yesterday, the proposal passed—in a controversial fashion—as Rune accumulated more than 60% of the vote via vote delegates. Many believe some large holders did not participate in the vote, which led to this outcome.

  • DOT (+4%) - Gavin Wood, Founder of Layer 1 platform Polkadot, announced last week that he would be stepping down as CEO of Parity Technologies, the company behind DOT. Wood, who is also one of the Ethereum co-founders, started building Polkadot in 2016 as an improved version of Ethereum. However, after launching in 2020, Polkadot has yet to gain meaningful traction compared to its peers like Solana, Avalanche, and Binance Smart Chain. Wood will transition to Chief Architect and focus on building several “social primitives” that should help further Polkadot as a Web3 platform.

  • APT (+25%) - Layer 1 protocol Aptos made headlines last week as it launched its mainnet and had its token listed on 3 major centralized exchanges. The hotly anticipated launch comes after Aptos raised $350M from venture capital firms Coinbase Ventures, FTX Ventures, Binance, a16z, Multicoin Capital, and others. Aptos promised to eclipse Solana, Ethereum, and other major Layer 1s with its high throughput speeds. However, the quick listing of APT on Binance, FTX, and Coinbase raised the ire of the crypto ecosystem because new issues are rarely listed so quickly. Additionally, the exchanges were also investors, causing many raised eyebrows at the potential conflict of interest. Finally, no details on the APT token’s supply schedule or distribution were released in advance, leading many to believe that retail was receiving the short end of the stick, left to trade without all the relevant information. Trading opened at $10, declined to about $7.50 and has since rebounded to $8.80.

  • HEGIC (+157%) - Decentralized options protocol Hegic, announced the launch of its “Hegic Herge” protocol upgrade. During the beta testing phase, the protocol earned over $400K in P&L, which is claimable by HEGIC token holders. Other features include a complete move to Arbitrum from Ethereum, a new feature that uses HEGIC as collateral in the protocol, and the launch of a new trading interface.


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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