Arbitrum Token Finds Its Way To OTC Market Before Airdrop Inbox
Following the Arbitrum airdrop announcement, eligible crypto users are already selling them on the OTC market.
The Arbitrum community has to speculate and sell unannounced Arbitrum Tokens on the over-the-counter (OTC) market following the announcement of the Arbitrum airdrop.
The Arbitrum Foundation announced that Arbitrum’s new token, ARB, will be airdropped to eligible community members on Thursday, March 23rd. She explained that ARB marks the formal transition of her Arbitrum to a Decentralized Autonomous Organization (DAO).
This means that ARB holders can vote on essential government decisions regarding Arbitrum One and Arbitrum Nova. Low rates.
OTC trading makes it easy to buy and sell cryptocurrencies directly between sellers and buyers. The process is usually quick as the money is transferred directly from your bank account to the seller.
In this case, once the buyer and seller agree on a price, the seller receives payment from the buyer and posts the seed phrase associated with the eligible wallet.
As Cole0x Tweeted;
ARB has a total circulation of 10 billion, with the Arbitrum community controlling 56% of the tokens. The airdrop will award an eligible Arbitrum user 11.5% of the total supply and 1.1% to his DAO operating in the Arbitrum ecosystem.
The Arbitrum community has warned others to stay vigilant following reports of phishing websites and scams offering Arbitrum airdrop tokens.
Arbitrum’s main competitor in the Ethereum scaling space, Optimism, launched its OP token almost a year ago when it transitioned to DAO governance.
Arbitrum, a Layer 2 scaling solution for Ethereum, has had its native token, ARB, show up on the over-the-counter (OTC) market ahead of its airdrop scheduled for the end of the month. ARB was offered at around $1.70 on OTC desks, substantially lower than its all-time high of approximately $5.
Arbitrum has gained significant popularity in recent months for its ability to increase throughput on the Ethereum network while reducing fees. The protocol recently surpassed 400 total projects, with several high-profile projects, such as Uniswap and SushiSwap, announcing integration with Arbitrum.
The OTC market allows investors to buy and sell assets outside of cryptocurrency exchanges. These transactions are typically done in large quantities and are priced according to market demand. As such, OTC markets often provide a better price for large orders as compared to traditional exchanges.
While the appearance of ARB on the OTC market may raise concerns for some investors, it is essential to note that these transactions are independent of the more comprehensive cryptocurrency markets.
Nonetheless, investors should exercise caution when buying or selling assets on the OTC market as they are not subject to the same regulations as traditional exchanges.
The Arbitrum team has not commented on the OTC sales. However, some community members have expressed concern that these sales could potentially create an uneven distribution of tokens and undermine the airdrop’s intended purpose. It remains to be seen how this situation will play out and whether it will affect the broader adoption of the Arbitrum network.