What's Driving Token Prices? October 11, 2023

Katie Talati
Oct 12, 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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  • PRIME (-19%) - Parallel, a blockchain-based trading card game, announced yesterday that it listed on Steam, currently the most popular video game distribution platform. The Parallel game will be launching in open beta soon but it is unknown if the full web3 functionality of the game will be available through Steam since traditional gaming platforms typically have limited features such as NFT functionality. 
  • MATIC (-9.6%) - Layer-2 scaling solution, Polygon, announced last week that it launched the initial contracts for its token migration on testnet. Over the summer, Polygon released a roadmap for Polygon 2.0 which included a redo and rebrand of MATIC. Polygon recently passed governance proposals to upgrade the MATIC token to the POL token, institute the use POL as staking/gas token on the network, and chose to adopt Ethereum’s EIP-1559 burn mechanism that burns a portion of gas fees spent. Finally, Circle announced yesterday that native USDC would be available on Polygon’s PoS network. 
  • JOE (-9.2%) - Avalanche-based decentralized exchange, Trader Joe, was named in a lawsuit last week by grocery store chain Trader Joe’s. The grocery store accuses the DEX of trademark infringement and profiting off the Trader Joe’s brand by using the same name and branding colors (red) in their marketing. Trader Joe’s also claims they sent multiple cease-and-desist letters to the DEX but received no response. The lawsuit requests that the Trader Joe DEX ceases using their name and hands over any and all websites associated with Trader Joe’s. 
  • AVAX (-6.8%) - Last week, Layer-1 blockchain, Avalanche, was the talk of the town with its upcoming launch of their friend.tech copycat, Stars Arena, which promised to improve the user experience on friend.tech. Avalanche, which saw a decline in user activity since the end of the bull market 18 months ago, rose 13% on the promise of a new killer app. However on Friday, Stars Arena suffered an exploit that drained the project of all $3M of its TVL. The hacker last night sent a message onchain offering to return the money (with the assumption that a portion of this will be granted to the hacker as a bounty). Friday’s incident follows another hack on Thursday, in which a hacker stole $2000 of AVAX tokens from the platform. The project is currently closed down until a full security audit can be completed and AVAX has suffered in the absence of a token for Stars Arena, down -6.8%

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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