What's Driving Token Prices? October 5, 2022)

Katie Talati
Oct 5, 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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  • OHM (-8.3%) - Decentralized central bank project, OlympusDAO, announced this week that it would be cutting its staking yield, which famously stood in the 10,000% at one point. With the depressed market conditions, it makes sense to decrease yield and increase participation from community members. A Twitter thread from the project explained how the APR scheme helped them bootstrap growth and build their community, but now it was time to retire that system.

  • LINK (-0.5%) - Decentralized oracle provider Chainlink last week revealed that SWIFT, the international bank wire system, would utilize Chainlink’s cross-chain interoperability protocol (CCIP) to coordinate the on-chain token transfers between blockchains. While this is only an initial PoC, the project is promising for real-world adoption of digital asset technology. In addition, Chainlink also recently announced new economics, which should make the cost and availability of data on their network much cheaper.

  • IMX (+5.6%) - Immutable-X, a gaming-focused layer-2, announced it would relock over 50% of its big November unlock for another year. The upcoming unlock represents 13% of the total supply—more than 100% of the current circulating supply—some of which is part of the project’s development fund. In addition, Tatsumeeko, whose original game TatsuGG had over 62 million users, will launch a new game on Immutable.

  • SUSHI (+13%) - Decentralized exchange Sushi announced Monday the election of a new CEO, or “Head Chef,” via a governance proposal. The project has been without leadership since 0xMaki stepped down last fall; the team has been searching for a seasoned CEO replacement for many months. Sushiswap’s decentralized governance structure further complicated the process. Jared Grey, the new Head Chef, will hopefully take the helm of one of the largest decentralized exchanges in crypto. However, the process was not smooth, and the hiring faced considerable pushback from the community. Grey is expected to focus on growing revenue and market share for the exchange.

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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