The derivative markets for Arbitrum’s forthcoming ARB tokens have opened to traders in advance of the claim event scheduled for later this week. The ARB tokens are set to be airdropped to community members on March 23rd, based on their previous network activity, signifying the transition of Arbitrum into a decentralized autonomous organization (DAO). This move will allow ARB holders to participate in voting for crucial decisions governing Arbitrum One and Arbitrum Nova, both of which offer users faster transaction speeds and lower fees on the Ethereum blockchain.
Despite this promising development, some traders are displaying impatience to earn quick profits. The I Owe You (IOU) tokens on the Hotbit crypto exchange are trading at $9.74 during the Asian afternoon hours on Monday. These tokens represent debt between two parties and settle instantly as trades are made. Hotbit’s trading data indicates that the tokens have already garnered more than $2 million in trading volume in the past 24 hours, with trades being executed every two minutes on average.
Adding to the speculation, BitMEX has introduced its own ARB token futures product on Monday, which offers traders leverage of up to 20 times, enabling them to either gain or lose a greater amount of money. However, BitMEX has cautioned that its ARB listing is highly speculative since ARB is not actively trading yet.
📣 A new @arbitrum futures listing is LIVE on BitMEX…
— BitMEX (@BitMEX) March 20, 2023
At the moment, these products are wholly speculative, but their use case may change after the official issuance of ARB tokens to network participants. Once ARB tokens are issued, traders and spot ARB holders may use futures products to hedge their spot holdings or gain exposure to ARB prices using a smaller amount of initial capital via leverage. Until then, however, the trading of Arbitrum remains an unregulated and unpredictable venture.