Arkham’s Token Transfers, Market Concerns

Arkham's Token Transfers, Market Concerns

Arkham’s Token Transfers, Market Concerns

Arkham explained the transfers as part of their tokenomics, but the market’s negative reaction led to a decline in ARKM’s value.

Competitor Nansen disclosed that Arkham transferred significant ARKM quantities, exceeding 25.2 million tokens with a combined value of over $56 million, to unidentified wallets and Binance.

This revelation has elicited apprehensions regarding the principles of transparency and intent.

On April 9, Arkham provided a response to the circumstances. They specified that these transfers, which involved unlocked tokens, were consistent with their tokenomics.

Notwithstanding these guarantees, the market responded unfavorably, resulting in a substantial decline in the value of ARKM.

Since its all-time high in March, the price of ARKM has been declining from a technical standpoint. The token tested a critical support trendline in late February, before Solana’s Rise Amid Market Decline the controversy.

On April 3, however, it surpassed this support, which accelerated the price decline. On April 8, it subsequently retested the trendline, which had served as resistance. At the moment, ARKM is evaluating a potential new support level near $1.93.

Arkham’s Market Impact

In the event that Arkham is unable to maintain this level of support, technical analysis predicts an additional 26% decline in price to $1.43.

The aforementioned potential decline serves to underscore the precarious market position of ARKM. Furthermore, it underscores the wider ramifications of concerns regarding market sentiment and transparency.

The utilization of artificial intelligence by Arkham has attracted interest, culminating in a November investment from Binance Labs.

The Arkham Intel Exchange serves as a medium for the interchange of intelligence pertaining to blockchain technology.

The “Intel-to-Earn” model enables users to generate revenue from their insights, and ARKM transactions are the foundation of this ecosystem.

Amidst a remarkable uptrend, ARKM has increased by more than 400% since August 2023.

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