Two Addresses Sold 3.73 Million ARB Token With Over $400,000 Loss

Key Points:

• According to on-chain data today, two wallet addresses were selling 3.73 Million ARB tokens with an estimated loss of around $430,000.
• The two whales decided to liquidate amid the noise of DAO management with the allocation of 750 million ARB post-airdrop.
• Faced with the protest, Arbitrum spoke out before the AIP-1 vote was over, and it was almost sure that the proposal would not be passed.

Amidst the protests over Arbitrum’s DAO management virtual noise, many investors who felt cheated decided to sell the ARB token despite the sizable loss.

After the chaos of the Arbitrum Foundation, two whales decided to take a loss to liquidate ARB tokens. On-chain data shows whale 0x1dd9 sold 2.03 million ARB 6 hours ago. Specifically, this wallet address raised 2.52 million ARB from Binance on March 27, when the price was $1.22. His average selling price was $1.14, with a loss of about $160,000. Currently, the whale address still holds 500,000 ARB.

Another whale, 0xca71, sold for $1.7 million ARB 5 hours ago. The whale was recommended from the exchange and purchased 1.95 million ARBs on-chain on March 24-28, at a total cost of about $1.32. His average selling price was $1.16, with an approximate loss of $270,000. Currently, the whale address has only 50,000 pool liquidity ARBs in SushiSwap.

To accelerate the development of Arbitrum, on March 28, Arbitrum launched the AIP-1 governance proposal to empower the Arbitrum Foundation to control 750 million ARB tokens (worth nearly 1 billion USD) for use for special support programs.

This may seem like a trivial proposition, but it is worth mentioning in AIP-1 that investors holding Arbitrum’s governance token (ARB) do not have the right to participate in allocating funds controlled by the Arbitrum Foundation. Because the Arbitrum Foundation will not need to give funding tokens for governance on the network, where ARB holders have voting rights to shape their ecosystem.

If the proposal is approved, the Arbitrum Foundation reserves the right to issue grants from the administrative budget wallet without going through the online AIP process.

Opponents added that if AIP-1 is approved, control of 1 million USD tokens will fall to three Arbitrum directors. Blockworks Research – A data analysis and research organization representing over 2,000 ARB investors expressed concern, as only over 3.5 billion of the 4.27 billion tokens were transferred to the DAO.

750 million tokens were transferred to the Arbitrum Budget Wallet controlled by the Arbitrum Foundation before the proposal was approved.

The AIP-1 vote will officially end, and with the current overwhelming number of votes (over 80%), it is almost sure that the proposal will not be passed. As expected by the community, Arbitrum confirmed that the AIP was not a proposal but acted as ratification.

At the same time, Arbitrum added 40 million of the 50 million tokens in circulation were distributed to financial institutions (referring to the market maker). The remaining 10 million tokens have been converted into fiat money for the organization to cover operating costs.

In another development, some investors in the community suggested that Arbitrum manipulated the price with tokens that were supposed to be locked until March 2024.

In addition, Lookonchain shows that 2.69 billion tokens allocated to investors, teams and advisors were transferred to 140 individual wallet addresses. The above amount of tokens will have to be locked and distributed gradually over 4 years.

The investors emphasized that, under the US Securities Law, the pre-sale of tokens would be considered fraudulent and that the citizens of this country who purchased the ARB are eligible to take legal action.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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