What's Driving Token Prices? (June 08, 2022)

Katie Talati
Jun 8, 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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  • BNB (-4.8%) - Binance, the world’s largest crypto exchange, is under scrutiny. According to reports, the SEC is probing whether the Binance ICO was an illegal securities sale. Binance conducted its ICO in July 2017 during the last crypto bull cycle. The company raised $15 million, which helped the exchange jumpstart its business.

  • RBN (+4.8%) - Porter Finance, a company that creates “bonds for DAOs,” launched its first product—a convertible bond for Ribbon Finance. Ribbon Finance, a decentralized options protocol on Ethereum, seeks to raise $3 million in debt via the convertible bond, which is 5x overcollateralized using RBN tokens. The collateral backing the bond is the RBN token, which is illiquid and faces inflationary pressure in the coming months. Factoring in Ribbon’s declining vault volumes and already thin net margins for the protocol, the offering at a 7% YTM (includes the price of the embedded call option) is not that attractive for holders. My colleague, Hassan Bassiri, does a great job breaking down the bond in detail on Twitter.

  • HNT (+18%) - Wireless networking project Helium introduced a Helium Improvement Proposal (HIP) this week, which will lay the foundation for Helium to capture a much larger market and produce multiple revenue streams for holders. HIP 51 proposes that various wireless networks (IOT, 5G, WiFi, VPN) will operate as subDAOs, each with its own token and governance. At the same time, HNT will still be required to acquire data credits throughout the ecosystem.

  • LINK (+25%) - Price oracle provider, Chainlink announced yesterday that it would launch staking as part of Chainlink Economics 2.0. Until now, those providing price feeds do not have anything at stake and can therefore act maliciously. By introducing staking, Chainlink will make its network more secure, as price oracles could have their stake slashed. There is no date set for when staking will go live, but this is a huge milestone in Chainlink’s roadmap.
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.

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