Arbitrum to unlock over $2
billion in tokens this month
On March 16, 2024, Ethereum’s layer 2 scaling protocol Arbitrum is set to unlock over $2 billion worth of ARB tokens, distributing 1.1 billion tokens, approximately 87% of the circulating supply, to the project’s team, advisors, and investors. This marks the largest token unlock of the month, alongside other projects like dYdX, Aptos, and Immutable releasing significant amounts. Robinhood has integrated Arbitrum to enhance user transactions with faster and more cost-effective processes using its layer 2 technology. Despite ARB trading at around $1.9, down nearly 3% in the last 24 hours, its market cap stands at approximately $2.5 billion.
The concern revolves around the potential price impact post-token unlock, as investors often fear a market flood and price decline when a substantial amount of tokens is released. Crypto projects typically lock up tokens to prevent sudden sell-offs, and the uncertainty surrounding the exact impact of such events is acknowledged. Notably, an annual report from Token Unlocks suggests that, on average, tokens rise by 34% after being unlocked for private investors, indicating a positive historical trend despite initial concerns.
Note🚨: this is not a financial advice, DYOR
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