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.
- RGT (-22%) - Rari Capital suffered its 2nd hack; the hacker made off with $80M across 7 different pools. Rari is a DeFi project that allows users to create their own lending markets. One of the hack victims, Fei Protocol (which merged with Rari last year), offered the hacker a $10M bounty if they offered to return the funds.
- FTM (-20%) - Layer-1 blockchain Fantom went into freefall this weekend after a $50M loan collateralized in Fantom tokens became liquidated, tanking the price of FTM as the loan was market sold. Fantom was already doing poorly following the exit of developer Andre Cronje. The borrower in question had tied up their assets and could not source liquidity to top up the original loan, which led to a community stop hunt. The token lost over 30% on Saturday during the liquidation and has since recovered 16% since.
- SOL (-11%) - On Saturday, Layer-1 blockchain Solana suffered a 7-hour outage following an incredibly popular NFT mint. Users reportedly used bots programmed to execute the minting function, which effectively spammed the network and took the blockchain down with it. This outage is Solana’s second in the last few months (there was a 17-hour outage in September last year).
- GNO (-2.8%) - Gnosis, which offers a suite of DeFi products on Ethereum, passed a vote yesterday to burn 6.8M of its GNO token. This would reduce the token supply by almost 70%—all of which is currently held in the Gnosis treasury. In the past, token burns have had mixed market reactions (although they can be likened to stock buybacks in traditional equities), with this one not doing much for the GNO price as it is trading in line with the market this week.
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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