Crypto traders are mistakenly pumping out a dead token called Arbitrum, thinking it is Arbitrum. The latter is set to airdrop the tokens today.
Traders saw a 2,000% increase in a token called ARbit (ARB) – mistaking it for Arbitrum’s token. The coin is currently up 10% in the last 24 hours, but in the last 8 days, it moved from $0.00024 to a peak of $0.027.
It has since dropped, possibly because traders realized they were exchanging the wrong coin.
arb for moon
Given the slippage, 24-hour trading volume still remains relatively high at around $6,560. This shows that traders are still making fundamental mistakes when it comes to trading cryptocurrencies.
It is clear that traders were hoping to trade the ARB token, which is the token used for Arbitrum. The latter is an Ethereum Layer 2 scaling solution that is very popular.
Such mistakes have been made in the past. In late February, crypto traders pumped and dumped Base Token after Coinbase announced Layer 2. The coin rallied 350%, before falling as traders realized it was the wrong coin.
This is quite a rookie mistake in the crypto market. Crypto projects often remind traders to exercise caution when trading and to ensure that they are exchanging for the correct token.
What is Arbit (ARB)?
ARbit is a very old cryptocurrency which was launched way back in 2015. It is considered a dead project, with no communication in nearly eight years.
It claimed to offer a range of features, including “flexible multi-engine design text dependent, text independent and text driven voice verification”. Essentially, it will do all the voicing to unlock the wallet. The developers said that this would provide an enhanced experience and reduce cheating.
The Arbitrum airdrop has excited the crypto community and is set to take place on March 23rd. Over 1 billion tokens will be distributed to over 600,000 addresses. The minimum airdrop value is 625 Tokens, and the maximum is 10,250 Tokens.
Of course, scammers are trying to take advantage of the situation. Several fake Arbitrum airdrops are going viral on social media, hence traders are advised to exercise caution.
Once the airdrop is complete, Arbitrum will operate using The DAO, and the ARB token will serve as the governance token. This is a major change for the project and signals a transition to its next phase.
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.