The debate is whether a token launch or airdrop like Arbitrim has the potential to rally the market, as seen with Blur’s price run after its launch. Some believe it was due to the launch of the token, while others think it was just normal market movements with more buyers than sellers. The only real market stimulus comes from additional fiat currency deposited into the crypto market specifically to buy the tokens. Otherwise, it’s just a rotational game.
The Potential Market Rally: Token Launch or Ordinary Market Movements?
The debate over what causes a market rally in the cryptocurrency world is ongoing. Some believe that a launch of a token or an airdrop like Arbitrim has the potential to rally the market, while others believe that it is just a normal market movement with more buyers than sellers.
Let’s take a look at Blur. When Blur launched, the price ran up. So, was it because the token was launched or was it just normal market movement? This is the question that we will be discussing in this article.
Firstly, let’s understand what a token launch is. A token launch is when a new cryptocurrency is released to the public. The price of the token can increase due to hype, speculation, and optimism from investors. On the other hand, an airdrop is a distribution of tokens to a large number of people for free. It can also generate hype and optimism and create a buying frenzy.
Now let’s focus on the case of Blur. There are different opinions on what caused the price to run up. Some believe that it was due to the token launch, while others attribute it to the ordinary market movement with more buyers than sellers.
Regardless of the opinions, one thing is certain, the only real market stimulus comes from how much money buying up from fresh fiat fits into the crypto market specifically to buy those Arbitrim tokens. If additional fiat currency is deposited, it is a form of stimulation, otherwise, it is just a rotational game.
In conclusion, whether a token launch or an airdrop can rally the market is subjective. It depends on various factors such as the level of interest from investors, the strength of the cryptocurrency market, and the amount of fiat currency being invested. Nevertheless, cryptocurrency enthusiasts are always on the lookout for the next best thing that could potentially turn a profit.