Arbitrum, a popular scaling solution for Ethereum, experienced a major setback when two large addresses sold 3.73 million ARB tokens, resulting in a significant loss of over $400,000.
The dump came at a time when the Arbitrum Foundation’s token allocation process had already generated a maelstrom of controversy, and the market was bracing for the worst.
According to CoinGecko, the current price of ARB is $1.19, which has decreased by 4.3% in the last 24 hours, and the 7-day decrease is at 7.2%.
Whale Sighting In SushiSwap’s ARB Token
A large trader identified as 0x1dd9 sold off off 2.03 million tokens at an average price of $1.14 USDT, resulting in a loss of roughly $160,000. Despite the setback, the address still holds 500,000 ARB, implying a strategic decision to cut losses while keeping a stake in the game.
Another significant player, 0xca71, unloaded 1.7 million ARB tokens at an average selling price of $1.16 USDT, incurring a loss of around $270,000. Currently, the address only retains 50,000 ARB in SushiSwap’s pair liquidity, representing a significant contrast to the volume previously held.
Arbitrum Foundation’s Token Allocation Process
The Foundation’s recent decision to allocate millions of ARB tokens has come under intense scrutiny and criticism from all sides.
鲸鱼 0xca71 于 5 小时前卖出 170 万 $ARB ：
该鲸鱼是在 3/24-28 从交易所提出+链上买入 195 万 ARB，综合成本约 $1.32。
他的出售均价为 $1.16，大致亏损 $27 万。
目前该鲸鱼地址仅剩 #SushiSwap 中组流动性的 5 万 ARB。 pic.twitter.com/ObAffEnUVx
— 余烬 (@BitcoinEmber) April 3, 2023
To quell the rising tide of discontent, the Foundation has taken steps to provide clarity on the situation. In an effort to address the heated debates that have erupted on its governance platforms, the Foundation has come forward with an explanation for the token allocation.
They revealed that 40 million ARB tokens were loaned to a well-known player in the financial markets sector, a move that has been met with mixed reactions.
The buzz circling the token allocation process of the Arbitrum Foundation has caused a seismic shakeup in the value of the ARB token. The uproar has only intensified with the sudden appearance of two behemoth wallets, spilling a staggering 3.73 million ARB tokens into the market.
This unwelcome surprise has added to the already prevalent pessimism, resulting in a bleak outlook for the once-promising ARB token. Traders and investors are holding their breath, anxiously awaiting the next chapter in this unfolding saga, with hopes of a positive turn in the future.
Crypto total market cap currently pegged at the $1.14 trillion level on the daily chart at TradingView.com
The Arbitrum Foundation’s token allocation process has become the latest scandal to rock the cryptocurrency industry. The price drop has only added to the controversy, with market participants and observers keeping a close eye on how the situation unfolds.
As always, the world of cryptocurrencies remains unpredictable, with new developments occurring by the minute.
-Featured image from Coinpedia