An IOU token and ARB future products heat up before ARB token airdrop

An IOU token and ARB future products heat up before ARB token airdrop

Time Stamp: March 20, 2023 6:48 AM
Source Node: 2022258

SNEAK PEEK

  • Arbitrum tokens to be airdropped to community members on March 23.
  • Token holders will be allowed to vote on decisions governing Arbitrum Nova and Arbitrum One.
  • BitMEX recently introduced its ARB token futures product though their new ARB listing is unpredictable. 

Derivative markets for the forthcoming Arbitrum tokens are open to traders before the claim event this week. Last week, developers of Arbitrum confirmed that ARB will be airdropped on March 23 to community members, according to their earlier network activity, which led to the official transition of Arbitrum into a DAO. 

Owners of the ARB token can vote on major decisions controlling Arbitrum Nova and Arbitrum One, i.e., the networks that enable users to transact on Ethereum with more speed and fewer fees. 

On Monday, IOU, an I Owe You token on Hotbit, a cryptocurrency exchange, traded at $9.74 in the Asian afternoon hours. These tokens display debt between two parties and resolve immediately as trades are made. 

During the past 24 hours, the tokens have generated over $2 million in trading volume. The data from Hotbit indicates that trades are made on average every two minutes. 

On Monday, BitMEX launched its ARB token futures product, thereby providing leverage of up to 20 times to allow traders to make or lose even more funds. 

In a listing announcement, BitMEX cautioned that their new ARB listing is an extremely unpredictable contract. 

Future prices of ARB on BitMEX are significantly lower than Hotbit’s and trade at slightly over $1, currently.

Though the products are unpredictable, their use cases may change after the official issuing of ARB tokens to network participants. Traders and owners of spot ARB tokens may utilize future products to protect their spot holdings or seek exposure to ARB prices by using a lesser amount of initial capital.

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