Arbitrum FUD spooks the market, but on-chain data shows whales accumulating ARB
Arbitrum suffered a big blow during the April 1–2 weekend due to a conflict between ARB tokenholders and the Arbitrum Foundation on the allocation of 750 million ARB tokens worth around $900 million.
Data from on-chain analysis firm Arkham Intelligence shows a transfer of $50.5 million out of the disputed allocation of 750 million ARB tokens. They shared with Cointelegraph:
On April 3, the Arbitrum Foundation conceded to the community’s opposition and decided to break up the said proposal in question into multiple proposals for allocating the funds for the project’s ecosystem growth.
Another on-chain transfer of 2.694 billion ARB tokens from the decentralized autonomous organization’s treasury to 140 addresses spooked the market. The transfers ranged from 100,000 to 71.6 million ARB per address.
Crypto analytics provider LookOnChain found that one of these addresses transferred its tokens to the Coinbase exchange, meaning it could sell its allocations. These tokens represent the amount allocated toward the team, investors and advisers, which was said to be locked for four years.
Active Crypto Twitter member Ogle responded to the ensuing panic selling by saying, “This is all such a non-story, it’s odd how big a deal you guys are making out of it.” Ogle added that these are probably exchange custodian wallets or Know Your Customer investor wallets bound by the lock-up.
The fear, doubt and uncertainty created during the weekend caused ARB’s price to plunge by 20% from March 31’s peak of $1.44 to lows at $1.10.
Zachrey Lerangis, head of operations at Arkham Intelligence, told Cointelegraphthat the “ARB whale activity over the past week has been balanced.”
Arkham’s analysts recorded $12 million in cumulative ARB whale deposits on
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