Over the weekend, panic and FUD caused disruption among the Arbitrum crypto community as holders speculated that the foundation had sold an exorbitant amount of the coins of their recently-launched ARB token. One of the accounts which led this conversation highlighted that the Foundation had moved out 750 million ARB (which was worth close to $1 billion) on the 16th of March, the launch date, and then sent some of it to the Binance crypto exchange. Furthermore, Eden Au, a research director, stated that the Foundation made a gesture attempted to allocate the tokens towards administrative and operational costs. However, this proposal was opposed by approximately 70% of ARB token holders and due to this, the price of ARB plummeted from approx. $1.5 to nearly a dollar. This sparked allegations that the Foundation was purposely dumping tokens on the community.

In response to this, Arbitrum then published a thread to clarify the situation. According to this thread, the primary motives behind their proposal, AIP-1, was to gauge the opinion of token holders and eventually have them demonstrate their approval. Additionally, they denied having had any 50 million ARB sale, following blockchain data which showed the transfer of 50.5 million ARB from the foundation. They then explained that 40 million of these tokens had been allotted as a loan to a monetarily sophisticated person, whilst the remaining 10 million had been changed to fiat for operational costs.



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