UNI users under risk from fake ETH/ARB pool: Are your holdings safe?
- ARB buyers on Uniswap might be at risk of losing funds to fake ARB.
- UNI might be headed for some more upside as whale demand picks.
Though Arbitrum [ARB] has finally been AirDropped successfully, the initial hype has already led to some risk for Uniswap [UNI] users. A fake ETH/ARB pool has already been created, and was out to get unsuspecting users.
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Initial reports revealed that the fake ETH/ARB had over 95 million fake ARB and over 400 WETH on Uniswap V3 at press time. The pool ranked on top, making the situation worse as far as risk exposure was concerned. Uniswap users trying to access ARB can avoid this scam by confirming the official contract addresses for ARB through the Arbitrum foundation’s official documents.
When searching for ARB directly on Uniswap, the fake ETH/ARB Pool is at the top. 0x64…9545 added a fake ETH/ARB Pool consisting of 400 WETH and more than 95 million fake ARBs on Arbitrum Uniswap V3. Users need to pay attention. H/T @levels_crypto
— Wu Blockchain (@WuBlockchain) March 23, 2023
The risk is only on the ETH/ARB pool, as far as initial reports are concerned. The scam incident was limited to the aforementioned pool; hence it would not affect all Uniswap users. On the plus side of things, Uniswap joined the list of the top 10 tokens by trading volume among the 500 largest Ethereum [ETH] whales.
Peep the top 100 whales here: https://t.co/tgYTpOmDm0
— WhaleStats (tracking crypto whales) (@WhaleStats) March 23, 2023
The high trading volume by ETH whales was a sign of bullish or bearish activity, thus the need to explore further. Some of Uniswap’s metrics may offer some clarity regarding direction. For example, the age consumed metric registered significant activity in the last two days. Meanwhile, UNI’s MVRV ratio achieved a sizable pivot in favor of the upside.
UNI exhibits readiness for a bullish move
The pivot confirmed that the bulls were overwhelmingly dominant during the last two days. UNI’s exchange flows revealed that there were higher exchange outflows than inflows. The same point was particularly evident by the large spike in exchange outflows in the last 24 hours at press time.
UNI’s price action reflected the above observations. It exchanged hands at $6.19 at the time of writing, after some upside in the last 24 hours. This may contradict the expectations of a strong bullish performance based on the metrics’ observations.
How many are 1,10,100 UNIs worth today?
A closer look at UNI’s price action revealed that the buying pressure highlighted in the metrics cut short a previous bearish trend. UNI tanked by 11% from its peak on 19 March to its mid-week low.
UNI’s chart alone highlighted multiple signs that may have forecasted the current pivot. For example, the bearish performance in the first half of the week resulted in an interaction with the 200-day moving average. The price has also been hovering within the 50% RSI level, where a pivot is likely to happen. A larger upside might be on the cards if the whales continued buying.