- Traders mistakenly bought a dead token called ARbit, thinking it was Arbitrum.
- ARbit and Arbitrum share the same token symbol, ARB, hence the confusion.
- ARbit has soared by 2,000% as a result.
Cryptocurrency traders have been erroneously pumping a dead token called ARbit, causing it to rise 2000% in the past eight days from $0.00024 to a peak price of $0.027. The uptick came as traders confused it for Arbitrum, whose airdrop is slated for later today at 17:00 GMT.
ARbit (ARB) Surges 2,000% As Traders Confuse It With Arbitrum Token: Crypto traders have sparked a 2,000% surge in a token known as ARbit after mistaking it for the Arbitrum token, which is… https://t.co/Kqax9GoUi1 #Markets #ARBPrice #ARbitARB #arbitrumairdrop #ArbitrumNews pic.twitter.com/KNJToDxdzQ
— Crypto411 (@CRYPT0411) March 23, 2023
However, the value of ARbit dropped after traders realized it was the wrong token, but it is still 109% up compared to its market value 24 hours ago, trading at $0.01356 at the time of writing. Its trading volumes are also relatively high over the same time frame, considering the mistake, with a reading of $10,430 on CoinMarketCap. This is a 12% increase in its 24-hour trading volume.
Rookie mistakes in crypto trading
The error indicates that traders are still making basic mistakes in crypto trading. In this respect, traders thought they were trading ARB, the native token for the Arbitrum ecosystem- an Ethereum Layer 2 scaling solution currently trending.
Mistakes of this kind have been spotted in the past. In February crypto traders pumped and dumped the BASE token after Coinbase’s layer 2 announcement. Consequently, the token exploded by 350% before falling after traders realized it was the wrong token.
Notwithstanding, both instances were rookie mistakes in the cryptocurrency market because crypto projects often remind traders to remain cautious when performing trades and confirm that the token they are exchanging is the right one.
Arbitrum and ARbit: The difference despite the ARB similarity
Despite the token symbol similarity, ARB, ARbit is a very old cryptocurrency that debuted in 2015. The project is considered dead, as it has not communicated for the last eight years.
On the other hand, Arbitrum is a fairly new project, with traders watching the clock for its airdrop on March 23 at 17:00 GMT. Over 1 billion tokens will be airdropped to at least 600,000 addresses during the event. Notably, the minimum airdrop value is 625 tokens and a maximum of 10,250 tokens.
Once the airdrop happens, Arbitrum will operate using a DAO, with the ARB token serving as the governance token. This is a major change for the project, signaling its transition into the next phase.
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