One of the most anticipated crypto projects went live yesterday. Arbitrum, a Layer 2 scaling solution for Ethereum, gave out tokens worth millions of dollars in an airdrop.
The official launch of Arbitrum
Gm. The day has come Arbinauts.💙🧡 pic.twitter.com/k590XQBvkd
— Arbitrum (💙,🧡) (@arbitrum) March 23, 2023
The airdrop along with the token launch was widely celebrated, capturing the attention of the whole crypto space. More than 42 million Arbitrum (ARB) tokens were reportedly claimed in the first hour after Arbitrum’s much-anticipated token airdrop went live on Thursday.
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That was around 0.42% of all ARB tokens as the total supply is set at 10 billion. The launch received so much interest that the project’s website went down for a while. Everybody wanted to get in.
If that wasn’t enough, even Arbiscan, the blockchain explorer for transactions on the Arbitrum blockchain, went down. Most of the eligible wallet addresses for the airdrop reportedly received at least 625 ARB tokens. Allegedly, around 37% of the total supply should be airdropped to eligible crypto wallets, representing one of the largest airdrops ever recorded.
Token dropped 90% on launch
The airdrop was very successful for those who received tokens and sold them right at the start of the trading. However, those who bought the token with an aim to make a quick profit during the launch got burned. ARB started to trade at around $10 but quickly dropped by 90% to $1. Blur made a similar airdrop, at which the token’s price plunged by approximately 90% as well.
Arbitrum chart, source: coinmarketcap.com
The early sellers could have made big profits when selling ARB between $5 to $10. At the time of the writing, the token trades at approximately $1.47, with a market cap of $1.87 billion, and a fully diluted market cap of $14.7 billion.
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The trading volume grew enormously to $3.5 billion, and the token is available on many major crypto exchanges, including Binance, Kraken, Bitfinex, Huobi, OKX, etc.
Kudos to those who were airdropped ARB tokens. But buying this token at the moment might be a bad idea. Although it seems “undervalued” after a 90% drop, its market cap is still huge. Arbitrum is now the 32nd biggest cryptocurrency in terms of market cap, and it was in the TOP 10 during its launch.
Arbitrum is one of the most favorable crypto projects for the next bull run. But, in my personal opinion, it is likely to go under a price of $1 in the near future. That’s when investors should start thinking about investing and considering dollar-cost averaging. I personally aim to buy this token below $0.50. We’ll see if that happens.
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