Recent events at Arbitrum have generated a lot of interest, mostly the launching of the ARB token on all exchanges and free ARB claims for users who met a set of eligibility requirements.
The activities to qualify for the ARB claim included making trades, creating liquidity, and bridging into Arbitrum networks, among other things.
It’s not all sunshine and roses, though; here is a list of what went wrong and how launches of notable initiatives in the future can benefit from this experience.
Arbitrum ARB Launch
The news that they were eligible for a free allocation of the ARB token at launch thrilled many. When word of the site’s launch spread, the Arbitrum Foundation website was ready for users to claim their tokens.
Although the team was aware of the demand that would be on the website the instant the claiming became available, they failed to prepare for it, and the website became overloaded as soon as the claiming became available.
The ARB token has already begun trading on a number of exchanges during this period of being unable to claim it, including Bybit and Kucoin. Binance followed a few hours later.
The lack of sell pressure and order book asks effectively pulled the ARB price upward because no one was able to make a claim. The ARB/USDC pair on Bybit was immediately sent from $0.40 at debut to over $100, severely hurting individuals who were buying market price as the crypto then crashed minutes later to under $2.
After this first pump and dump, it is difficult to even notice the price action on the chart, with individuals who were caught in the crossfire losing up to 99% of the value of their trades. This kind of failed launch demonstrates the need for more work on the part of projects to guarantee the security of investors in these kinds of crypto launches.
Avorak AI
Avorak AI is one project that will undoubtedly benefit from the mistakes made in other previous token sales. The developers are taking no chances, as already proved by a perfect audit pass. Avorak is preparing for a strong launch with great tokenomics, Gnosis safes for project funds, BscScan having previously listed the AVRK token, and CEX rumors circling. The ICO is doing well so far, and it appears that as time goes on and the market remains strong, interest will grow even more.
Avorak, which will offer a full suite of AI tools to help individuals in the financial and creative industries, seems like it may take off rapidly, but it’s also a good option for a multi-year investment. It follows that those who want to use the products will buy AVRK in addition to those who merely want a form of passive income from the revenue share, meaning multi-purpose to the token not seen in other cryptocurrency projects. The revenue gained from people using the Avorak services is shared with AVRK holders.
All eyes will be on the launch, which is predicted to be quite bullish, especially given that investors will have access to high APR but non-inflationary staking immediately following the launch.
Want to learn more about Avorak AI?
Website: https://avorak.ai
Whitepaper: https://avorak-labs-and-technology.gitbook.io/avorak-a.i-technical-whitepaper/
