ARB token takes a hit as 2 whales liquidate holdings

A recent report reveals that two top Arbitrum (ARB) whales incurred a whopping loss above $400,000 from a recent token sale.

Data from an on-chain observer, BitcoinEther, showed that the two anonymous whales sold off a total of 3.37 million Arbitrum tokens on April 2. ARB token has witnessed a 6% decline in its value, following the controversy surrounding the token allocation process.

The transactions occurred the same day, and still, a mystery whether they were deliberately planned or coincidences.

Two whales dump millions of Arbitrum tokens

According to the data, one of the whales, with address ‘0x1dd9,’ sold off about 2.03 million ARB tokens worth $1.14 million. The whales completed the sales at an average price of $1.14 per token. However, the sales resulted in a loss of $160,000 as per market prices at the time of sales. 

Presently, the whale still holds 500,000 ARB in the address. It’s still unknown what the whale plans for the remaining tokens, whether they are for long or short-term holding.

The other whale with address ‘0xca71’ offloaded about 1.7 million Arbitrum (ARB) tokens as Arbitrum hit $1.16. Notably, the whale got $2 million in the transaction. But the sales incurred a loss of about $270,000. Currently, the whales hold 50,000 ARB tokens in the liquidity pair of SushiSwap.

ARB price performance

Arbitrum is a layer-2 scaling solution for Ethereum that focuses on enhancing scalability, speed, and cost through optimistic rollups. It launched ARB as its native token for governance on March 23, 2023. 

At the time of writing, ARB is trading at $1.19, indicating a drop of 4.82% over the past 24 hours. Also, the 7-day price action of ARB is down by 3.75%.

According to CoinMarketCap, Arbitrum ranks as the 39 top crypto asset with a market cap of $1.55 billion. Its market dominance is 0.28%, with a 24-hour trading volume of $1.17 billion. 

Following the launch of ARB, Arbitrum transited to a DAO, giving ARB holders governance rights over the project. However, there have been some controversies concerning the token allocation process of Arbitrum Foundation overseeing network governance. This issue resulted in the recent price drop of ARB 6%.

However, the Foundation dispersed the brewing problems by explaining the need for ARB allocation processes. According to its post, 40 million ARM tokens were given out as a loan, while 10 million ARB was kept for operational expenses for the project.