• Two wallets amass over $2 million worth of ARB tokens via airdrop farming.
• There is speculation that some of the Arbitrum activity is fake.
• ARB has dropped 80% in value since its launch on Thursday.
Overview of Arbitrum Activity
This article examines recent activity on the Ethereum Layer-2 platform, Arbitrum, which has been experiencing unprecedented activity over the past months. With the launch of its governance token ARB and subsequent airdrop, two wallet addresses have amassed over $2 million worth of ARB tokens from almost 1,500 other wallets. This has caused speculation that some of the activity on Arbitrum may be fake; as a result, ARB has dropped 80% in value since its launch last Thursday.
According to blockchain analytics firm Lookonchain, two wallet addresses have amassed more than 1.4 million ARB tokens from the airdrop worth more than $2.1 million at the time of writing. They were able to do so through massive airdrop farming: one wallet received ARB from 866 other wallets and the other got it from 630 addresses. To get so many tokens via almost 1,500 wallets, multiple transactions and network activities had to take place over a long period – potentially explaining why Arbitrum is now dominating Layer-2 networks.
It is unclear who is behind these two wallets that have accumulated substantial amounts of ARB tokens but some speculate it might be insiders or people close to the project. If true this could lead to centralization and other issues for projects that reward their users through airdrops like Arbitrum did with their governance token, which could prevent other projects from doing similar things in future.
Decrease In Value
ARB is currently trading at $1.43 as of this writing, down 80% on the day according to CoinGecko’s data – making it clear that many people have been selling their claimed tokens instead of holding onto them for potential future gains as was expected by some analysts when it first launched last week at above $8 per token price point..
The sudden influx in activity on Arbitrum due to its newly launched governance token led to an accumulation by two wallets which has caused suspicion around whether or not some of these activities are legitimate or not – leading to an overall decrease in value for those who invested early and held onto their coins expecting high returns later down the line as well as preventing similar projects from utilizing similar methods like Airdrops in future endeavors