Web3 Knowledge Map Protocol 0xScope Comments on Upbit’s Large ARB Holdings

On March 31, the Web3 Knowledge Map Protocol 0xscope posted an article on social media stating that an EOA address had collected a large number of ARBs in the past day, and currently holds approximately 59 million ARBs, valued at approximately $84.4 million. 0xScope added that according to activity data, 0xScope believes that this address may be an Upbit hot wallet address. If the speculation is correct, the number of ARBs held by the Upbit platform will be second only to Binance.

0xScope: An EOA address currently holds approximately 59 million ARBs, or is an Upbit hot wallet address

Introduction

On March 31, 2021, the Web3 Knowledge Map Protocol 0xScope released an article on social media, which claimed that a certain Ethereum EOA address recently collected a large number of ARBs in a single day and is now holding almost 59 million ARBs, valued at approximately $84.4 million. Additionally, the article mentioned that based on activity data, the address in question may be the Upbit hot wallet address, which may imply that the Upbit platform is currently holding the second most significant number of ARBs next to Binance. In this article, we will explore the context behind the claim and discuss the impact it may have on the crypto community.

Understanding ARB

Before we dive into the details surrounding the 0xScope article, let’s take a moment to understand ARB itself. ARbitrum is an Ethereum Virtual Machine (EVM) compatible, Layer 2 scaling solution. ARB is the token used to incentivize validators to validate transactions on the ARbitrum network. It has been listed on several notable exchanges, including Binance, Uniswap, and Huobi Global.

The 0xScope Article

The 0xScope article, posted on social media on March 31, 2021, and titled “Upbit may have a large amount of ARBs,” started by pointing out that an EOA address recently collected a massive amount of ARBs in a single day, and currently holds approximately 59 million ARBs, valued at around $84.4 million. According to the article, the address in question is quite active in the market, which led 0xScope to assume that the wallet belongs to a cryptocurrency exchange; Upbit, to be specific.
Upbit is a South Korean cryptocurrency exchange that launched in 2017. It is currently one of the largest cryptocurrency exchanges worldwide, serving a global user base. As per the article, if the speculation is true, Upbit’s hot wallet will be the second-largest holder of ARBs, with Binance holding the most significant amount.

Possible Scenarios

Based on the claims made by the 0xScope article, several scenarios may play out. If 0xScope’s speculation regarding the EOA address’s ownership is accurate, and it is the Upbit hot wallet address, then it is likely that Upbit is stockpiling ARBs for one reason or another. There are a few possible reasons why Upbit may be doing so. For example, some speculate that Upbit may be planning to list ARBs on its platform, while others suggest it may be part of a buyback and burn program.
Another possibility is that Upbit is seeking to take advantage of the potential demand for L2 solutions on the Ethereum network. As more and more users adopt the network, L2 solutions like ARbitrum may be in high demand. Upbit may be positioning itself to supply its users with the latest L2 products and services by stockpiling ARBs.

Conclusion

In conclusion, the 0xScope article has revealed some intriguing developments in the world of ARB. Upbit’s alleged stockpiling of ARBs raises several important questions about the direction of the crypto industry and the potential future of Ethereum L2 solutions. While the reasoning behind Upbit’s recent accumulation of the coin is unknown, one thing is for sure: it has piqued the crypto community’s interest. We will continue to monitor this situation and share updates as they become available.

FAQs

Q1. What is ARB?

ARB is the token used to incentivize validators to validate transactions on the ARbitrum network. It is an Ethereum Virtual Machine (EVM) compatible, Layer 2 scaling solution.

Q2. What is Upbit?

Upbit is a South Korean cryptocurrency exchange that launched in 2017. It is one of the largest cryptocurrency exchanges worldwide, serving a global user base.

Q3. Why is Upbit stockpiling ARBs?

The reason behind Upbit’s recent accumulation of ARBs is unknown. Speculation suggests that Upbit may be planning to list ARBs on its platform, part of a buyback and burn program, or positioning itself to supply its users with the latest L2 products and services by stockpiling ARBs.