Uniswap users have been warned of potential risks after a fake ETH/ARB pool was created following the successful airdrop of Arbitrum. The situation worsened as the pool ranked at the top, making it a high-risk exposure for users.
Scam incident is limited to the ETH/ARB pool and does not impact all Uniswap users
Initial reports indicated that the fake ETH/ARB pool had over 95 million fake ARBs and over 400 WETH on Uniswap V3 at press time. However, Uniswap users looking to access ARB can confirm the official contract addresses for ARB through the Arbitrum foundation’s official documents to avoid this scam.
It’s worth noting that the scamming incident only affected the ETH/ARB pool and was limited to the pool above. Therefore, it would only impact some Uniswap users. Despite the scam, Uniswap joined the list of the top 10 tokens by trading volume among the 500 most significant Ethereum [ETH] whales.
High trading volume by ETH whales indicates bullish or bearish activity, requiring further exploration
The high trading volume by ETH whales indicates bullish or bearish activity, which requires further exploration. Uniswap’s metrics may clarify the direction, such as the age consumed metric, which registered significant activity in the last two days. Meanwhile, UNI’s MVRV ratio achieved a sizable pivot in favour of the upside.
The pivot confirmed that the bulls were overwhelmingly dominant during the last two days. UNI’s exchange flows also revealed higher exchange outflows than inflows. The same point was particularly evident by the significant spike in exchange outflows in the last 24 hours at press time.
UNI’s price action at $6.19 contradicts expectations of a strong bullish performance
Despite the bullish activity, UNI’s price action exchanged hands at $6.19 after some upside in the last 24 hours. Based on the metrics’ observations, this may contradict the expectations of a solid bullish performance.
A closer look at UNI’s price action revealed that the buying pressure highlighted in the metrics cut short a previous bearish trend. UNI tanked by 11% from its peak on 19 March to its mid-week low.
UNI’s chart alone highlighted multiple signs that may have forecasted the current pivot. For example, the bearish performance in the first half of the week resulted in an interaction with the 200-day moving average. The price has also been hovering within the 50% RSI level, where a pivot is likely. The cards might have a more considerable upside if the whales continued buying.
In conclusion, Uniswap users must be cautious of the risks associated with the fake ETH/ARB pool created following the successful airdrop of Arbitrum. However, despite the scam, the bullish activity indicates that UNI is ready for an upside move.