After more than doubling in 24 hours, Rain Protocol’s RAIN token is the best performer in the top 100 cryptocurrencies. What is happening with this relatively unknown asset?
RAIN token soars after announcement of new Treasury Company
Over the past 24 hours, Rain Protocol’s RAIN token has been the best performer among the top 100 cryptocurrencies, rising more than 105% to a price of $0.0075 per unit.
Previously unknown, Rain is actually a decentralized prediction market operating on Arbitrum (ARB). In addition to the public markets found at competitors such as Polymarket, Rain also offers the creation of private markets.
To understand the reason for this increase, we must turn to Enlivex, a Nasdaq-listed pharmaceutical company that is developing an anti-inflammatory treatment for osteoarthritis. The company has succumbed to the siren call of Digital Assets Treasuries (DAT), with the somewhat exotic choice of RAIN as a treasury asset.
On Monday, the company announced a $212 million investment from a sale of shares. In a prospectus filed with the Securities and Exchange Commission (SEC), Enlivex also lists various ways to grow this cash:
Where possible, we may employ various strategies in the capital markets and on the blockchain, including staking, restaking, liquid staking, and participation in decentralized finance protocols, to optimize the return on our RAIN holdings. However, we cannot guarantee the availability of these strategies or, if available, their effective implementation to improve returns.
At the same time, former Italian Prime Minister and current Senator Matteo Renzi has joined the Enlivex board of directors.
Unsurprisingly, ENLV stock is one of the worst performers on the stock market, down 99% since its IPO. On Monday, the stock rose 13.74%, but we can highlight a decline of nearly 44% from its intraday high:
Returning to the RAIN token, caution remains the order of the day, as we see more and more DATs failing due to a lack of real long-term vision. Furthermore, this warning remains all the more valid at a time when the cryptocurrency market is going through a period of uncertainty and altcoins are particularly at risk.
