Recent developments at Arbitrum have drawn a lot of attention, particularly the launch of the ARB token across all exchanges and the availability of free ARB claims to users who fulfilled certain criteria.
Making deals, producing liquidity, and bridging into Arbitrum networks were some of the actions that qualified for the ARB claim.
But it’s not all rosy; here is a list of what went wrong and how future launches of significant projects can learn from this experience.
Launch of Arbitrum’s ARB
Many were ecstatic to learn that they qualified for a free allocation of the ARB token at debut. The Arbitrum Foundation website was ready for users to claim their tokens as soon as news of the site’s launch spread.
The team failed to prepare for the demand that would be present on the website the moment the claim became available, despite being conscious of it. As a result, the website quickly became overloaded.
During this time when it cannot be claimed, the ARB token has already started trading on a number of platforms, including Bybit and Kucoin. A few hours later, Binance came after.
Because no one could make a claim, the absence of sell pressure and order book asks essentially drove the ARB price higher. When the ARB/USDC pair on Bybit launched, it was instantly sent from $0.40 to over $100, severely hurting people who were purchasing at market value before the cryptocurrency crashed to under $2 minutes later.
Those who were caught in the crossfire lost up to 99% of the value of their trades, and after this initial pump and dump, it is difficult to even spot the price action on the chart. This type of unsuccessful launch highlights the need for additional effort on the part of projects to ensure the security of investors in these types of crypto launches.
One project that will surely learn from the errors made in alternative token sales is Avorak AI. The developers are not taking any chances, as evidenced by an audit run that was flawless. With excellent tokenomics, Gnosis safes for project funds, a prior listing of the AVRK token on BscScan, and CEXs already listing the project, Avorak is gearing up for a successful launch. The ICO is doing well so far, and it appears that interest will increase as time moves on and the market stays strong.
Avorak appears to have a lot of potential and could grow quickly, but it’s also a good option for a multi-year investment. Avorak will provide a complete suite of AI tools to assist people in the financial and creative industries. As a result, AVRK will be purchased by both those who wish to use the products and those who simply desire a passive income stream from the revenue share, giving the token a multi-purpose not found in other cryptocurrency projects. AVRK holders receive a portion of the income generated by customers using Avorak services.
The launch, which is expected to be bullish, will be the focus of attention, particularly since investors will have access to high APR but inflation-free staking immediately after the launch.
Want to learn more about Avorak AI?
Buy AVRK: https://invest.avorak.ai/register
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