What's Driving Token Prices? September 13, 2023

Katie Talati
Sep 13, 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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  • BANANA (-99%) - Banana Gun, a telegram trading and sniping bot similar to Unibot, released its token on Monday.  The token has been gaining traction in anticipation of an airdrop for tokenholders.  Unfortunately, a bug in their trading tax contract could not be fixed and thus the Banana Gun team decided to sell its treasury wallet and drain the LP pool. This action sent $BANANA from ~$7 to $0.02 in a matter of minutes.  Since then, the Banana Gun team said that they took a snapshot in order to relaunch $BANANA and make traders whole after an audit. In the day after the failed token launch, Banana Gun's market share fell from 65% to 50% in terms of trading bot volumes. We expect their dominance to continue declining until the team figures out how to properly launch a token and make impacted users whole again.
  • SYN (-16%) - Bridging project, Synapse, released a testnet on Monday for its Synapse Interchain Network and Synapse Chain. Synapse Chain, which is built as a roll-up using OP Stack, will provide security for Interchain Network users. The Interchain Network was the original Synapse product built to serve as the bridge between other chains so with the Synapse chain, in theory, the product should be more secure. The bridge currently holds $106m TVL, the second largest amount of any cross chain protocol, after Stargate. 
  • XRP (-3.6%) - Last week, crypto payments project, Ripple, announced its acquisition of Fortress Trust, a chartered trust company and a digital asset custodian. Fortress Trust was in the news just a week ago for a data breach involving one of its third-party vendors. Impacted users by the breach were made whole by Ripple as part of the acquisition. Ripple plans to keep Fortress Trust’s current products while also accessing Fortress Trust’s Nevada trust license. The deal was rumored to be less than $250M in a mix of cash and equity.
  • TON (+2%) - Telegram, the most widely used messaging app among crypto enthusiasts, announced today that the TON network would be the official blockchain network for the Telegram messaging app. TON was created back in 2018 and raised $1.7B on the back of Telegram’s success as a messaging app. However, TON returned funds to users after a battle with the SEC. Despite this hiccup, the project still exists today and is now turning its focus to supporting Telegram and its Web3 wallet, which is available as a standalone bot in Telegram. The bot will be integrated into Telegram’s app and a non-custodial wallet called TON Space will be rolled out for non-U.S. users in the next 3 months. 

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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