Arbitrum, the largest layer-2 blockchain protocol, has announced the release of its native token, ARB, and an airdrop for platform users. According to AZCoin News, the airdrop will take place on block #16890400, around 12:47 on March 23rd (UTC).
The total initial supply of ARB is 10 billion tokens, with the majority owned by the community. Specifically, 12.75% of the total supply, equivalent to 1.75 billion tokens, will be airdropped on March 23rd. “The community will own most of the tokens (about 56%). Of that, 12.75% will be distributed through the airdrop on March 23,” according to Arbitrum’s announcement.
However, the Token Unlock website, which tracks token unlocking schedules, shows that the initial circulating supply of ARB is much higher than other projects. The recipients of the token distribution on March 23rd, according to Token Unlock, include DAOs in the Arbitrum ecosystem (113 million tokens), the airdrop (1.162 billion tokens), and the Arbitrum DAO treasury (4.278 billion tokens). Based on these figures, about 55% of the total supply will be released on the market on launch day (March 23rd). This number is much higher than Optimism, Arbitrum’s main competitor, which has released around 400 million OP tokens, equivalent to 9% of the total supply.
However, the amount of ARB tokens released on the market may not be as high as the figures suggest. Specifically, the tokens in the Arbitrum DAO treasury may not be immediately released on the market. Token Unlock notes that its figures are based on the project’s smart contract to determine token unlocking schedules. Although the tokens in the Arbitrum DAO treasury will be unlocked at the TGE, they will need to be voted on by the DAO to be released on the market.
“The amount of tokens in the DAO Treasury needs to be voted on by a decentralized vote to be sold on the market,” according to @s4mmeth, a researcher at OrginsNFT.
2Cu4, a member of Arbitrum’s Discord channel, stated that the initial circulating supply of ARB tokens would depend on the number of tokens received by airdrop recipients. This means that the DAO treasury will not sell or release any tokens on the market.
The initial circulating supply will have a significant impact on the price of ARB tokens. With its position as the largest layer-2 blockchain protocol, the community is predicting a market capitalization of $2 billion for ARB tokens, with a price of $1.9 per token. ARB is currently trading at nearly $1 per token OTC. After the airdrop announcement, the community became excited about the free money from this layer-2 blockchain project. However, many users have traded their ARB tokens OTC to profit before March 23rd.
Jack, an anonymous user, has sparked a frenzy of ARB short selling in the decentralized markets. According to him, ARB tokens can be sold for as high as $1, but many are also selling them for $0.5 to enable buyers to earn a profit.
Moreover, a Twitter account named @cole0x has shared the sale of ARB at an average price of $0.98 via OTC.
OTC trading allows direct buying and selling of cryptocurrencies, which is convenient and quick, with the funds transferred to the seller’s bank account. However, OTC stock trading, though profitable, carries risks and is suitable mainly for investors who are willing to take risks.
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This article was republished from azcoinnews.com
