A popular crypto analyst is warning traders to be realistic about the possible future price of the newly launched token for the Ethereum (ETH) scaling solution Arbitrum (ARB).
In a new YouTube video, the anonymous host of InvestAnswers pushes back against the “false hopium” internet chatter about the possibility of ARB skyrocketing to $100.
“If that were to happen, Arbitrum would have a full diluted market cap of $1.3 trillion. It’s never going to be worth that, okay? Just put things in perspective. Be careful what you read and do your numbers on the back of a napkin, don’t just say, ‘Oh, I can buy something for a dollar and sell it for $100.’ No, it’s not going to happen.”
The InvestAnswers tells his 443,000 subscribers that he’s concerned that Arbitrum is heavily centralized, heavily concentrated in the hands of whales, and still has 87.2% of its token circulation left to be unlocked.
According to the InvestAnswers host, Arbitrum has a fully diluted market cap of over $13 billion, which he notes is already greater than the fully diluted market cap of other established large-cap altcoins such as Polygon (MATIC) and Solana (SOL).
Arbitrum just kicked off its first airdrop last week, distributing 12.75% of its token supply. The asset rapidly plunged from trading around $5.04 at launch to around $1.19 only a few hours later.
At time of writing, ARB is trading for $1.16.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
