Arbitrum begins DAO token allocation- Will ARB face red again
- The Arbitrum Foundation has initiated token distribution for qualified DAOs.
- Like the token launch season, ARB has been hit with selling pressure.
According to information from Arbiscan, Arbitrum [ARB] has started allocating tokens to the Decentralized Autonomous Organizations (DAOs) that contributed to its network.
This distinction of the tokens differs from the one supplied to the early adopters and participants when it was in the testnet stage.
How much are 1,10,100 ARBs worth today?
The contributing DAOs get their share
Before its official token launch, the Ethereum [ETH] scaling project had decided on 113 million ARB tokens out of the total 10 billion for eligible participants.
Even though the Arbitrum Foundation had a fracas with its community about the DAO allocation, the latter later consented to the AIP 1.1 proposal to go ahead with the distribution.
According to on-chain data, at press time, 125 DAOs would receive the token in the first batch with others billed to be distributed later. Some of the beneficiaries include MakerDAO [MKR], Uniswap [UNI], and 1inch Network [1INCH].
Prior to the official token launch, the crypto community had high hopes in terms of price performance. But the premier was hit with sell-offs as ARB tanked from $10 to trade a little over $1.
Despite a few attempts to revive from the dump, ARB’s price seems to have reverted to the state in which it found its former self. At press time, the token had lost 25.17% of its value in the last seven days.
Maybe issuance prefers the red bars
As per the four-hour chart, the Awesome Oscillator (AO) showed that the ARB had formed some sort of bearish twin peak. In this instance, it could be interpreted that the token’s momentum was not being controlled by the buyers. At the time of writing, the AO was -0.0991.
Although the indicator remained below the zero-histogram, the green bars had begun to reflect. This suggests that some signs were appearing to countervail the selling pressure.
Realistic or not, here’s ARB’s market cap in ETH’s terms
But this may also prove to be difficult for ARB, based on the indications from the Directional Movement Index (DMI). At press time, the +DMI (green) was 10.55. On the other hand, the -DMI (red) had a higher value at 27.38.
Additionally, the Average Directional Index (ADX) was 389.82. This indicator serves as a measure of the directional strength of an asset.
When the ADX (yellow) is below 25, it implies the strength behind the price action was weak. But when it is above the aforementioned value, it means that there is solid backing behind the price trend.