Recently, two major Arbitrum (ARB) whale addresses dumped a total of 3.73 million tokens, resulting in heavy losses of over $400,000. On-chain observer, BitcoinEmber, noted that the first whale address, 0x1dd9, sold 2.03 million ARB at an average price of $1.14 USDT, amounting to a loss of about $160,000. The address still holds 500,000 ARB. The second address, 0xca71, sold 1.7 million ARB at an average price of $1.16 USDT, losing approximately $270,000. The address currently holds 50,000 ARB in Sushi Swap's pair liquidity.
The sale follows a dispute concerning the Arbitrum Foundation's token allocation process. 750 million ARB tokens were suggested to be distributed, however, members of the community voiced their input and concerns that were overlooked. In response, the foundation provided further context to explain their allocation decisions. They clarified that 40 million tokens were given in the form of a loan to a professional in the financial sector.
This sudden move could be the outcome of questioning the foundation's choices and the large loss incurred could be a sign of the whales' discontent. Although the Foundation believes that their decentralized governance system is appropriate and operating as planned, stakeholders must understand that some decisions must be made before the tokens can be distributed. Although the outcome of the prolonged discussions is yet to be determined, it could very well be a lesson in the importance of collective governance, especially when it comes to digital assets.
Angelica Morris
- 2023-04-03
Major Dispute Followed By 3.73 Million ARB Whale Dumps
Two large whale addresses have dumped 3.73 million ARB tokens, resulting in over $400,000 losses. This was likely due to a disagreement on the Arbitrum Foundation's token allocation decisions.
