What's Driving Token Prices? September 6, 2023

Katie Talati
Sep 6, 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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  • GALA (-20%) - Blockchain gaming project, Gala Games, is facing a scandal because of a new lawsuit from the CEO, Eric Schiermeyer, claiming that the project’s co-founder, Wright Thurston, stole and liquidated $130M worth of GALA tokens before the company could stop him. The same lawsuit accuses Thurston of founding and mismanaging projects. In a countersuit, Thurston claims that Schiermeyer waded into the CEO position at Gala Games in order to use company funds for personal purchases such as a private jet. Although the saga is still unfolding, the GALA token has taken a big hit on the news and is down 20%.

  • OP (-11%) - USDC launched on Optimism Mainnet and Base, the first 2 of its 6 launches that will span over September and October of this year. As with Arbitrum, there is the potential for initial fragmentation as “Ethereum-bridged USDC” gets gradually phased out in favor of “native USDC” as a reserve asset. The cross-chain functionality of USDC increases security because it does not need to be bridged with pegged assets, which is common practice of issuing assets on other chains. Additionally, Base experienced a new block production halt yesterday for about thirty minutes before coming back online.

  • SOL (-6%) - Solana becomes the second blockchain that Visa has integrated with (after Ethereum) to settle transactions for merchant banks. Visa cited Solana's speed and cost as key differentiators in their selection. Since this integration comes directly from Visa, who is partnered with two merchant banks, WorldPay and Nuvei, Solana can immediately be useful for settlement. This news comes on the heels of Solana’s recent partnership announcement with Shopify.

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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