Two whale addresses sold 3.73m ARB with $400k loss

Two giant whale addresses have reportedly accrued a loss of more than $400,000 after selling 3.73 million ARB on April 3.

According to data from BitcoinEmber, an on-chain observer, the two addresses sold 3.73 million ARB. The first whale address, “0x1dd9,” sold 2.03 million ARB. The address currently still holds 500,000 ARB.

The whale’s selling price was $1.14, which resulted in a loss of about $160,000. This specific wallet had initially raised over 2.52 million ARB on March 27. At that moment, the price was $ 1.22.

The second whale address, “0xca71,” sold 1.7 million ARB just an hour after the first whale. This address now has only 50,000 ARB remaining in SushiSwaps’s pair liquidity.

The selling price for this whale was $1.16, garnering a loss of approximately $270,000. This whale purchased 1.95 million ARBs for $1.32 between March 24-28.

The push behind the sale

The recent chaos seen at the Arbitrum foundation is believed to be the main reason behind sell-offs. Arbitrum developed an AIP-1 governance proposal on March 28, which would see the foundation controlling about 750,000 million ARB tokens. These tokens are worth 1 billion USD and would be used for special support programs.

Although this may look like a good deal, AIP-1 does not give Arbitrum’s governance token investors rights to allocate funds under Arbitrum Foundation’s control.

This is simply because the Arbitrum foundation will not have to roll out governance funding tokens on the network, where holders possess the right to vote and decide on how to shape their ecosystem.

If this proposal is approved, the Arbitrum foundation will have all the rights to give grants from the administrative budget wallet without needing an online AIP process.

According to Blockworks research, a research organization representing over 2,000 investors, only 3.4 billion of the 4.27 billion tokens were transferred to the DAO.

Before the proposal was approved, a whopping 750 million tokens got transferred to the Arbitrum budget wallet under the Arbitrum Foundation’s control.

Some investors have also complained that Arbitrum manipulated token prices meant to be locked until March 2024.

Lookonchain, on the other hand, shows that 2.69 billion tokens allocated to teams, advisors, and investors got transferred to 140 individual addresses. Investors feel that the tokens pre-sale is fraudulent, and ARB investors can take legal action if needed.