Derivatives markets for the upcoming Arbitrum ARB tokens are open to traders ahead of this week’s claims event.
Arbitrum developers confirmed last week that ARB will be airdropped to community members on Thursday, March 23 based on their previous network activity, marking Arbitrum’s official transition to a decentralized autonomous organization (DAO).
This means ARB holders can vote on key decisions about Arbitrum One and Arbitrum Nova — networks that allow users to transact on the Ethereum blockchain at faster speeds and with lower fees.
But call the impatience to make money the trader’s vice.
An I Owe You (IOU) token on crypto exchange Hotbit is trading at $9.74 in Asian afternoon hours on Monday. These tokens represent debt between two parties and are settled instantly when trades are made.
The tokens have already seen over $2 million in trading volume in the last 24 hours, with trading data from Hotbit showing trades being made every two minutes on average.
As if that wasn’t enough, on Monday, futures powerhouse BitMEX unveiled its own ARB token futures product – offering up to 20x leverage to give traders the chance to make even more money (or to lose).
“Please note that our new ARB listing is a highly speculative contract (ARB is not yet actively traded),” BitMEX warned in its listing announcement.
ARB futures prices on BitMEX are significantly lower than Hotbit, trading at just over $1 on Monday.
Although these products are entirely speculative as of Monday, their use case could change after ARB tokens are officially issued to network participants. Traders and spot ARB holders can then use futures products to hedge their spot holdings or leverage exposure to ARB prices with a smaller initial capital.
Until then, it’s the wild west of arbitrage trading.
Comments are closed.