11 months ago I shared a simple guide on how to qualify for the Arbitrum airdrop and the day has finally come.
Yesterday, Arbitrum announced the airdrop and their plan to decentralize the network by issuing the $ARB token which enables Arbitrum to become a DAO.
To qualify for this airdrop all you had to do was use Arbitrum from time to time. Even users that only bridged funds to arbitrum and made a few transactions are eligible for a few tokens.
If you qualified, congrats. Here is how you should prepare for next Thursday:
Who Gets What?
You can check your eligibility and the number of tokens you will be getting here. Token distribution is represented in the chart below.
The average distribution per wallet is about 1500 $ARB tokens and close to 500K wallets qualify for this drop.
#Price Expectations
A lot of people are speculating on the price of the token but it's really impossible to determine a fair valuation at this point.
When Arbitrum raised money they were usually valued between $1.2B and $1.5B. Considering that $ARB has a total supply of 10B $0.15 per token would be in line with the only data we can work with so far.
But, there are a few things to take into consideration:
Between 3B and 4B tokens will be in circulation at launch
$1 per $ARB would put it just below Matic which isn't such a wild thought
This is crypto and price discoveries can have wild fluctuations
My personal predictions:
Pessimistic - $0.1
Realistic - $0.4
Sell everything you have - $2 and over
How To Make Money At Launch
As soon as the flood gates open trading will commence on-chain and this is when things get really wild. During the Optimism airdrop there was $10M in trading volume in the first few hours but there was only $100K in the liquidity pool. This kind of action makes liquidity providers rich and if you plan on selling some $ARB tokens immediately here is a better way to do it:
If You Plan To Sell
Putting $ARB tokens in the liquidity pool on Uniswap is much better than just selling the token on the market. Since Uniswap now enables you to use concentrated liquidity here is a hypothetical situation where you make more by selling slowly.
Launch price is $0.1 and you want to sell $ARB between $0.3 and $0.4. If you put $ARB in the ARB/ETH pool and chose to only provide liquidity once the price hits your target you can make a lot more while waiting for your tokens to be converted.
Set the minimal price at $0.3 and max price at $0.4. If the token reaches this target your pool will only hold ETH now but you would also earn LP rewards along the way which can be huge during the first 24H.
The same can be applied if you plan on buying $ARB. Just do the whole process in reverse.
Final Words
If you are following me on this journey and you qualified for the airdrop thanks to my ramblings here on Hive be sure to let me know in the comments. Airdrops can be life-changing and while I don't expect too much from this one it is still free money.
And if you missed out, don't worry because Airdrops aren't going anywhere. Follow the frogs and chill.