Arbitrum airdrop sells-off at listing, but traders remain bullish on ARB

The official Arbitrum airdrop page crashed after the claim process started around 9 am EST. Some users can still claim through alternative methods like Arbiscan. In the first two hours, the market witnessed massive selling of the token as its price dropped from over $10.29 to $1.

On ByBit, the token started trading for $7.50, but dropped to $1.50 within minutes. At the time of writing, the token is trading at $1.33.

Only one address was able to sell tokens at $10.29 through the ARB/USDC pool on Uniswap, bringing $64,340 for 6,250 tokens. A few others were able to sell for $4.50, but the price quickly dropped below $1.50 as more sellers arrived.

ARB/USDC trades on Uniswap. Source: GeckoTerminal

Nansen’s data shows that of the 6.03 million ARBs claimed by “smart money” wallets, $5.01 million were transferred to centralized or decentralized exchanges, which are most likely to be sold. Analytics companies put the “smart money” tag on addresses that are traded at a significant scale and are usually active.

ARB token flows through “smart money” wallets. Source: Nansen

While some smart money accounts added 3.45 million from DEX. Overall, the amount transferred to the exchange was 150% greater than the inflow to the wallet, indicating a huge sell-off.

Related: Arbitrum’s ARB token marks start of airdrop season – Here are 5 to watch out for

The experience claims to be poor for the average user

Aribtrum’s airdrop claim webpage crashed due to overwhelming demand from users to claim ARB tokens. The page returned 404 and 429 errors, remaining down more than an hour after the claim process began.

However, some users still claim airdrop through alternative services like Arbiscan. Blockchain explorer witness the record the number of visitors was more than 84,000 in the first 30 minutes after the claim window was opened.

Nansen’s data shows that 15% of airdrop claims are processed when the official Arbitrum web page is down.

However, the claim through Arbiscan is far from smooth. Websites also experience downtime due to traffic overload, creating a bad user experience for many.

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The widowed token will live for 184 days until September 24, 2023.