Arbitrum Whales Dump 3.73 Million Tokens, Impacting Market Prices

Christian Encila

2 years ago

3 mins read

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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%.

Source: Coingecko

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.

Price Drop

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

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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