What's Driving Token Prices? (August 31, 2022)

AVAX (-17%) - Layer 1 protocol Avalanche has been the subject of a scandal this week after online “whistleblower” publication Cryptoleaks released an article accusing Ava Labs, the company building the Avalanche chain, of actively trying to sabotage other Layer 1s. The report alleges that Ava Labs contracted law firm Roche Freedman to collect confidential information on rival Layer 1s and launch class-action lawsuits against them. Ava Labs and Avalanche have vehemently denied the allegation. The token initially dropped 12% on the news but has since recovered those losses as the law firm involved and Avalanche founder, Emin Gün Sirer, publicly refuted the article.
SNX (-5%) - Kain Warwick, the founder of decentralized derivative protocol Synthetix, put forward a proposal last week to stop SNX inflation and cap the total supply at 300m tokens. Synthetix was the first DeFi project to pilot using yield farming as a way to bootstrap its network and grow customers. In the proposal, Kain states that revenues earned from product lines are now growing enough to encourage users to stake SNX without the added inflationary rewards. Synthetix commands 3% of the decentralized derivative market share (on a volume basis) with $72M in annualized revenues,e while inflation on Synthetix is very low at 3%.
HT (-1.4%) - Earlier this week, Sam Bankman-Fried, the founder of FTX, dispelled rumors that he was looking to acquire the centralized exchange Huobi. A few weeks ago, it was reported that one of Huobi’s co-founders was looking to sell his 30% stake to either Sam Bankman-Fried or Justin Sun, the founder of Tron. Upon these initial reports, the Huobi Token shot up 23%; following SBF’s tweet, HT has traded down 9%.

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