Crypto traders have been mistakenly pumping a dead token called Arbit, thinking it was Arbitrum. The latter is set to airdrop tokens today.
Traders have sparked a 2,000% surge in a token called ARbit (ARB) — having mistaken it for Arbitrum’s token. The token is currently up by 10% over the past 24 hours, but in the past 8 days, it went from $0.00024 to a peak of $0.027.
It has since dropped, likely because traders realized that they were exchanging the wrong token.
ARB to the Moon
24-hour trading volumes still remain relatively high, given the mistake, at about $6,560. It goes to show that traders still make basic mistakes when it comes to trading cryptocurrencies.
It’s clear that traders were expecting to trade the ARB token, which is the token that is 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 the BASE token following a layer 2 announcement by Coinbase. The token surged by 350%, after which it fell because traders realized that it was the wrong token.
It’s a fairly rookie mistake in the crypto market. Crypto projects often remind traders to exercise caution when making trades and be sure that they are exchanging for the right token.
What Is ARbit (ARB)?
ARbit is a very old cryptocurrency that launched far back in 2015. It is considered a dead project, with no communication in about eight years.
It claimed to offer a lot of features, including “flexible multi-engine design delivering text dependent, text independent and text prompted voice verification.” Essentially, it would make all voices to unlock wallets. The developers stated that it would offer enhanced experiences and reduce fraud.
The Arbitrum airdrop has the crypto community excited and is scheduled to take place on March 23. Over 1 billion tokens will be airdropped to more than 600,000 addresses. The minimum airdrop value is 625 tokens, and the maximum is 10,250 tokens.
Of course, there are scammers trying to take advantage of the situation. Many fake Arbitrum airdrops are making the rounds on social media, so traders are advised to exercise caution.
Once the airdrop is complete, Arbitrum will operate using a DAO, and the ARB token will serve as the governance token. It’s a major change for the project and signals the shift into its next phase.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
