ATTENTION MUST READ FOR ARB HOLDERS 🚨🚨🚨
$ARB will undergo its first unlock in the next 24 Hours (16 March 2024) according to the schedule. This will unlocks another 1.11B of ARB token into the open market, adding ~76% more of the current token into circulating supply.
So far, the entire ARB supply has been created by the initial airdrop (retails) and the DAOs operating in the Arbitrum ecosystem.
Now, what should we do as ARB Holder?
Few key info to consider:
This unlock will unfreeze the ARB token that are currently locked with the detail are as such:
673 million tokens allocated to Team and Advisor,
438 million tokens to early investors.
So let’s delve into the early investor current condition:
In the seed round phase, ARB are priced $0.005 per token.
Next at the Series A and B funding token are priced at $0.12 per ARB token.
Current ARB price are now ranging between 1.9~1.7 area (and keep dropping because retail already shifting away amid uncertainty). If the early investors decide to liquidate their position, that would mean ~34,000% and ~1,400% return for the seed round and series A and B investors respectively.
However, If they tried to unload those unrealized profit into the open market simultaneously, it will create so much downward pressure that such profit are impossible to be realized.
Why the downward pressure?
1. Economic laws says more supply therefore bearish
2. Few hands holding such a large amount of token also gives bearish narrative.
3. Fear already spreading on retail, also bearish
4. Mass selling will drop the price soo much lower than its fair market value!
So if you’re an early investor, what will you do?Unless you willing to take on significant hit on your profit, You will PUMP it first! PUMP PUMP IT SKYHIGH!
