Arbitrum IOU Ahead of ARB Token Airdrop, Futures Markets Heat Up
The derivatives market for the upcoming Arbitrum (ARB) token is already open to traders ahead of this week’s claims event.
Arbitrum developers confirmed last week that ARB will be broadcast to community members based on their prior network activity on Thursday, March 23, marking Arbitrum’s official transition into a Decentralized Autonomous Organization (DAO).
This means ARB holders will be able to vote on key decisions governing Arbitrum One and Arbitrum Nova – networks that allow users to transact on the Ethereum blockchain with greater speed and lower fees.
But for traders call impatience to make money a vice.
One Eye Owe You (IOU) token trades at $9.74 in the Asian afternoon hours on Monday on crypto exchange Hotbit. These tokens represent a loan between two parties and are settled instantly in the form of trades.
The token has already seen over $2 million in trading volume in the last 24 hours, with trades being made every two minutes on average, according to Hotbit’s trading data.
If that wasn’t enough, futures powerhouse BitMEX on Monday introduced its ARB token futures product – offering leverage of up to 20x to give traders the chance to make (or lose) even more money.
“Please note that our new ARB listing is a highly speculative contract[ARB अभी तक सक्रिय रूप से व्यापार नहीं करता है],” BitMEX warned in its listing announcement.
ARB futures prices on BitMEX are significantly lower than HotBits, trading at just over $1 at the time of writing on Monday.
Although these products are purely speculative as of Monday, their use case may change once ARB tokens are officially issued to network participants. Traders and holders of spot ARBs can use futures products to hedge their spot holdings or gain exposure to ARB prices using a small amount of initial capital through leverage.
Until then, it’s the Wild West of arbitrage trading.