Data shows that on-chain activity for ARKM, the native token of the Arkham Intelligence platform, dropped significantly following a recent airdrop. As of July 30, active addresses dropped by 99%, resulting in a 98% drop in transaction volume.

ARKM Airdrop: Details

The rapid decline in on-chain activity comes less than two weeks after the much-publicized Arkham Intelligence airdrop began on July 18. The airdrop was designed to incentivize early supporters of Arkham Intelligence, a blockchain analytics platform, with eligible users receiving ARKM tokens.

Arkham Intelligence said that ARKM is a utility and governance token that has multiple functions, including facilitating the trading of crypto intelligence data, voting on important development proposals, and distributing rewards. The token is minted in accordance with the ERC-20 standard on Ethereum, which means it can be transferred to exchanges and external addresses.

To be eligible for airdrops, users must be on the Arkham Private Beta waitlist or participate in the Arkham Bounty Program. The number of tokens allocated to each user during the airdrop is determined by their activity on the Arkham platform. At the end of the airdrop, on-chain data compiled by CryptoQuant showed that 63,700 addresses had received ARKM.

Most holders sold, active addresses down 99%

The purpose of the airdrop is to raise awareness about Arkham and expand its user base. Most people who qualify for air investing receive less than 200 ARKM. Only 5 addresses received more than 100,000 ARKM.

Looking at what happened after the drop, Arkham may have to work extra hard to get back into action. Data shows that of the 63,700 wallets that received airdrops, 95% chose to sell their tokens, with 80% of recipients liquidating their entire holdings.

Extrapolating from CryptoQuant data, this means that 97% of the 28.9 million airdrops have been sold, with 80% fully liquidated into cash or other liquid cryptocurrencies. One wallet holder "0xf0" received 24,900 ARKM and sold it all for at least 83 ETH.

Following the airdrop, ARKM prices fell amid further headwinds from massive liquidations, with the token currently trading at $0.553. As of July 30, the project had a market capitalization of approximately $83 million, with a circulating supply of 150 million tokens. CryptoQuant data also shows that 47 active addresses moved 3.6 million coins as of July 27, compared to 50,500 on July 18.