Author: Andrew Thurman & Michael Bodley Source: blockworks Compilation: LianGuai, Shan Ouba
After months of market hype, blockchain analytics platform Arkham today released the long-awaited ARKM token.
Arkham airdropped different quantities of tokens to early participants and testers of the new bounty platform, and the tokens are available for trading on the Binance platform.
As expected, this airdrop activity has been very popular, with over 47,000 addresses claiming 23.7 million tokens worth over $15 million at the time of writing. According to Nansen’s data, the token contract address and claiming contract are among the largest gas consumers on the Ethereum chain for the day.
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Although the price of the new asset exceeded the initial exchange offering (IEO) price of $0.50 and had a fully diluted valuation of up to $800 million in the first few hours of trading, the token price has since fallen due to a large amount of selling pressure from claimants.
The token issuance by Arkham represents a bet on the development of a market focused on buying and selling encrypted intelligence. The establishment of such a platform may be controversial, for example, for those who oppose paying rewards for personal data. However, through this platform, analysts can get paid to uncover valuable data and information.
The token issuance by Arkham represents a bet on the development of a market focused on buying and selling encrypted intelligence. Its establishment may generate some controversy, for example, from those who oppose paying rewards for personal data. However, this has led to a bounty system where analysts can earn rewards by uncovering valuable data and information.
In the hours following the release, the trading volume of ARKM exceeded $150 million, with only $8.2 million coming from on-chain liquidity. The ARKM/WETH pool on Uniswap v3 is the most popular.
Binance launched ARKM with a token purchase limit of $15,000. It is reported that before the release, buyers intending to purchase ARKM staked a large amount of Binance’s native token BNB to reach the purchase limit.
ARKM is an ERC-20 token that gives holders a certain degree of governance over the Arkham Intelligence Exchange. It also provides discounts for using core market functions, including setting and completing bounties, and exchanging corresponding data.
However, this release has also faced criticism from some in the cryptocurrency community. Andrew Smith, founder of VRRB Labs, told Blockworks that Arkham certainly has the right to launch services that reveal the owners of digital wallets because it is public information. But providing financial incentives for users to disclose the identities behind wallet addresses is an undesirable practice and a bad image. Although Arkham claims to monitor submitted information and audit incoming data, industry insiders believe there are hardly any restrictions on selling. The Arkham Foundation is overseeing the entire process.
Market Trends So Far
Although the lack of accurate on-chain data makes it difficult to accurately measure how many Arkham claimants have sold their tokens and how many people have bought them, some details do provide insights into the market’s perception of the new token.
It is worth noting that although the claim contract has been interacted with more than 47,000 times, there are approximately 31,000 token holders. According to analyst Chris Lee’s Dune Analytics dashboard, over 70% of claimants received fewer than 200 tokens. Five addresses received over 100,000 ARKM tokens.
So far, the liquidity remains strong. Blockchain analysis shows that Wintermute has been retained as a market maker. According to Nansen’s data, Wintermute received approximately 15,000,000 ARKM tokens, most of which were sent to Binance, with the rest being held in trading addresses. Among the five addresses that received over 100,000 tokens, all of them seem to have transferred their shares to the market. One of the addresses sent over 180,000 tokens to Binance and shortly after received USDT worth $137,000; another address sold their claim for ETH within an hour; the other two addresses sent tokens to Binance; and the last address sold them directly on-chain for USDT via 1inch.
Despite both small and large holders selling tokens, the asset’s price has still risen by nearly 25% from its IEO price of $0.66. Binance previously stated that in order to “protect users from the impact of high volatility,” the exchange took unconventional measures by setting a price limit of ten times the initial purchase price – $0.05. This move may be aimed at preventing traders from attempting to drive up the price.
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