Arbitrum airdrop flops, but ARB still makes it to a commendable all-time high. Here’s what happened


  • Users could not claim ARB tokens for the first hour after the airdrop launch.
  • Twitter users criticized Arbitrum for not performing a stress test.
  • ARB still managed to hit almost double-digit gains once normalcy was restored.

The token launch for Arbitrum was quite bumpy, to say the least after users could not claim their airdrop tokens for the first one hour post-launch. The turn of events was very disappointing, given that users had been waiting for a week for the highly-advertised ARB airdrop.

Arbitrum off to a rough start

To begin with, when claiming commenced, the Arbitrum Foundation website crashed and remained offline for at least an hour. Upon return, most users could not claim their tokens citing high gas fees. Some users still managed to claim it through alternative methods like Arbiscan. During the first two hours, the market witnessed a massive sell-off of the token, with its price declining from over $10.29 to lows of $1 on the Kucoin exchange.

At Kucoin, the token recorded an intra-day high of $11.65 but dropped to $1.50 within minutes. At the time of writing, the token was trading at $1.37.

ARB/USDT 15-min chart

Only one address successfully sold ARB at $10.29 through the ARB/USDC pool on Uniswap. This address bagged $64,340 for 6,250 tokens. Several others were able to sell for $4.50 before Arbitrum price plummeted below $1.50 at record speed. This happened as more sellers flocked to the scene. 

As a result, Arbitrum users were frustrated beyond words, indicated by the extremity of criticism and backlash that community members have given to the network.

While different users cited different challenges, one particular concern stood out involving users getting their tokens but not being able to move them.  

As a result, some users gave it an ‘F’ grade for the epic fail, and other community members offered possible solutions to what the network needed for a seamless user experience. Another group claimed it was a strategic move by Arbitrum to heighten gas fees so that they could add a priority fee.

Overall, the situation was embarrassingly bad, given Arbitrum launched the most hyped airdrop the crypto industry has seen in a long time but came out as unprepared for the traffic, which most call a ‘stress test.’

Arbitrum acknowledges the problem as ARB records a notable ATH

Notably, airdrops in the crypto sector are crucial to decentralizing the concerned network and rewarding early users for participating. After acknowledging the reason why its debut was a flop, Arbitrum issued an apology on Twitter. Based on the announcement, the network acknowledged the problem but it did not reveal the root cause..

Speculation about what the value of ARB would be upon launch had been rearing several days before the main event, with some saying the token could hit $6. Better still, others hoped it would explode to $10 and qualify as the most valuable blockchain in the world.

Close enough! According to Coingecko, the ARB token managed to record an all-time high (ATH) of $8.67, which was 33% higher than had been predicted.

Nevertheless, as was expected, it took barely an hour before the highly-advertised Layer 2 (L2) token dropped to the $1-$2 price range. At the time of writing, ARB is auctioning for $1.43 with indications of volatility as it went down as low as $1.11 in one instance.

Source: Coingecko

Notably, 63% of ARB has already been claimed, and if the remaining tokens are claimed and sold, the Arbitrum price could plunge further. This should be expected, given that eligible token holders will now flock to the website to claim their ARB as network traffic continues to subside.

 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP