An October Snapshot for Community Tokens
The month of October has been a volatile and newsworthy one for crypto, especially for community tokens. While the consensus will point to crypto experiencing a bear market, many projects are continuing to build and position themselves to survive this bear market. In this report, we highlight the biggest price gainers and losers for October and recap some of the major headlines and updates in the community token space.
Some of the Top Gainers for October
$FWB is the native token of the FWB DAO - a cultural membership powered by a community of web3 artists, operators, and thinkers bound together by shared values and incentives.
The price of the $FWB token was up 34.7% for October, reaching a monthly high of $12.19 price per token.
The FWB DAO passed a proposal (96.7%) that has determined the future of the FWB membership tier. The new proposal simplifies the FWB membership into one group at the 75 $FWB level - meaning all DAO members will have access to the full spectrum of FWB benefits. At the same time, it would enable anyone holding any amount of $FWB to access a selection of the DAO's offerings. The new proposal eliminates the "Local" 5 $FWB membership tier. Listed below are the potential benefits of this newly passed proposal.
- Consolidating membership into a single, streamlined experience would make designing, implementing, and communicating member benefits easier.
- Enabling anyone holding any amount of $FWB to access a selection of FWB content and products without applying will make "sampling" FWB frictionless---without taking away from the full membership experience.
- Having one single membership level will allow for smoother migration and onboarding into the fwb.app, where access to the FWB ecosystem will be granted by an identity NFT.
- The Discord will be less confusing, as everyone will have access to the same channels.
The $AVG token is a utility and governance token for Avacado DAO - a collection of contributors that believe in the benefits of blockchain technologies and the metaverse.
The price of the $AVG token was up 28.8% for October, having reached a monthly high of $0.089666 price per token.
On the development side, it was a busy month for Avacado DAO, having finalized multiple partnerships. Avacado DAO and Reta Wars reached a strategic partnership earlier in the month. Reta Wars is a strategy NFT War-to Earn game where two DAOs can compete strategically for revenue. The partnership will enable Reta Wars to offer its players new opportunities and help bridge them into the metaverse.
Later in the month, Avocado DAO agreed to partner with GameSwift, a project building an ecosystem to revolutionize web3 gaming. Its flagship products are the GameSwift Platform and ID which provide a one-stop solution for gamers to consolidate their credentials, NFT assets, scores, and achievements in one place.
$CULT is the native and tradable token for the CULT DAO - a DAO that services those contributing or building toward a decentralized future.
The price of the $CULT token was up 13.3% for October, reaching a monthly high of $0.00000887 per token.
According to a published article from Cult DAO’s official Medium page - CULT is building its very own zk-EVM (zero knowledge Ethereum Virtual Machine) - layer 2 blockchain - powered by CULT. The goal of zk-EVM blockchains is to allow users to transact on Ethereum with lower fees and shorter delays. An example of another layer 2 blockchain would be Polygon.
However, as specified by the founder of CULT DAO, the intention of building their own blockchain is (if feasible) is to allow users to opt-in or out of sending their contract interactions to a block explorer, meaning that it is up to you as the user whether you wish to be transparent or not.
$MC is the governance token for Merit Circle - A DAO that develops opportunities to earn through play for people who want to help build the metaverse.
The price of the $MC token was up 9.5% for October, reaching a monthly high of $0.864870 price per token.
In late October, the Merit Circle DAO voted to burn nearly $170 million worth of its native MC tokens. The burn will see 200 million MC tokens taken out of circulation, out of MC's total supply of 1 billion tokens. The proposal received overwhelming support from the community, with 99.7% voting in favor.
$SAND is a utility and governance token used for value transfers, staking, and governance within the Sandbox community - a metaverse platform.
The price of the $SAND token was up 7.2% for October, reaching a monthly high of $0.909153 per token.
The popular metaverse platform continues to build, and October was another month of establishing business partnerships. Gucci and Sandbox reached an agreement that would allow Gucci to build its own digital space within the metaverse platform and be the first luxury brand to do so. The experimental concept store Gucci Vault Land will be available from October 27 to November 9. Players can experience the Vault at 360° through a play-to-know narrative and complete activities for a chance to win an exclusive reward and SAND.
Additionally, late in September, The Sandbox reached an agreement with AXA Hong Kong, “AXA,” a leading global insurer. AXA will become the first insurance company to enter into the metaverse. AXA aims to provide fresh digital experiences to its customers, partnering to co-create the future of insurance in the metaverse.
Some of the Top Losers for October
ApeCoin, also known as $APE, is the governance and utility token that serves the popular APE ecosystem. The APE ecosystem comprises of the ApeCoin community and all products and services that use $APE.
The price of the $ApeCoin token was down -9.4% for October, reaching a monthly low of $4.06 per token.
One of the month's biggest headlines was when the United States Securities and Exchange Commission announced it would investigate Yuga Labs over whether its Bored Ape Yacht Club Ethereum NFTs and the ApeCoin token are unregistered securities. The token fell 10% in 24 hours upon the announcement of the news.
Some major developments within the ApeCoin DAO include voting proposals that are set to expire by early November. One of these proposals pertains to a bug bounty program that would delay the ApeCoin staking program by 3-4 weeks. For those unfamiliar with bug bounty programs, these programs aim to provide financial incentives to independent bug bounty hunters who discover security vulnerabilities and weaknesses in systems.
$MANA is a cryptocurrency that facilitates purchases of LAND (a non-fungible token) and virtual goods and services used in the virtual reality platform Decentraland.
The price of the $MANA token was down -2.6% for October, reaching a monthly low of $0.590851 per token.
A controversial recent article published in October by Coindesk using DappRader data suggested that both Decentraland and The Sandbox have fewer than 1000 daily users despite a $ 1 billion valuation for both companies. It should be noted that DappRadar defines a user as defined as a unique wallet address’ interaction with the platform’s smart contract. It doesn’t consider users that drop in for a special event or simply login to interact with other users.
Both The Sandbox and Decentraland disputed these findings and stated that these numbers are not telling the big picture. Decentraland emphasized it uses its own data platform, which says there have been around 7,000 daily unique users for October and roughly 59K monthly active users in September. Also, CEO and co-founder Arthur Madrid of The Sandbox, told CoinDesk that DappRadar’s metric only reflects transactions between users or a primary NFT sale and not other forms of meaningful engagement. The CEO released a response that stated that The Sandbox has an average of 39K+ daily users and 201K users.
CoinDesk released a second article that dove deeper into these claims and pointed out the dozens of “marathon users” who spend 20+ plus hours on the Decentraland platform to add fuel to the fire. In other words, it's unclear how many bots are amongst the Decentraland platform.
It’s unclear what is the correct way to validate these claims, but $MANA’s price did not respond positively to this news.
Axis Infinity Shards (AXS) is a governance token for the blockchain-based trading battling game, Axie Infinity.
The price of the $AXS token was down -26.9% for October, reaching a monthly low of $8.29 per token.
October was a rough month for Axie Infinity, having seen their token price fall drastically from recent news developments. According to multiple reports, the player count on the Axie Infinity platform has fallen by 74% since January 2022, reaching a level of around 702,000 users - a level that matches its 2021 user numbers. To provide some hindsight, at its peak, monthly Axie Infinity players hit 2.78 million in January of this year.
Additionally, on October 24, the AXS token supply increased by around 21.5 million new tokens, which were set off by the vesting schedule. The new issuance of tokens brought the circulating supply of AXS tokens to around 103,943,492. Around 2.16 million of these tokens will be given to private investors. It’s not uncommon for early-stage companies to allocate coins to their private investors through a scheduled vesting period to alleviate some of the selling pressure. However, investors and traders did not respond kind to this news and the AXS token experienced a sharp decline in price during the week leading up to the unlock.
*Market caps and pricing sourced from coingecko current as of October 31, 2022.
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