• Arbitrum recently held a token airdrop, resulting in a frenzy of traffic to their website.
• Nearly 240,000 eligible wallets still need to claim their ARB tokens worth roughly $596 million.
• The 428 million unclaimed tokens represents 37% of the total 1.1 billion ARB allocated for the airdrop.
Arbitrum Airdrop Causes Frenzy
Arbitrum’s token airdrop started off in a frenzy that broke multiple websites, with 61% of eligible crypto wallets – traders, decentralized finance (DeFi) protocols and investment firms – having already claimed their ARB allocation. Despite this, nearly 240,000 addresses still needed to claim their governance tokens late Thursday – representing 428 million ARB worth roughly $596 million that had yet to enter the market.
Heavy Traffic Overwhelms Claims Website
The effect that token supply can have on emerging markets was on full display Thursday morning when Arbitrum’s claims website collapsed due to heavy traffic, artificially restricting the airdrop’s initial redemption rate. This meant fewer tokens in circulation during a period of peak demand; causing ARB prices to soar as high as $14 on some venues before settling out around $1.42 once more wallets had claimed their allocations.
184 Days Left For Eligible Wallets To Claim Tokens
Eligible addresses have 184 days left to claim their tokens if they haven’t already. Token holders will be able to use them for staking or voting on decisions regarding the network’s development direction and protocol upgrades post-mainnet launch later this year.
Impact Of Token Supply On Emerging Markets
Token supply has been shown to be an important factor in forming emerging markets; too much available supply can lead to price drops while too little can cause prices to spike due to increased demand relative to limited availability.. The overall effect is determined by how many people are willing and financially able purchase newly-released tokens such as those from an airdrop like Arbitum’s recent one.