Two major whale addresses have dumped a staggering 3.73 million Arbitrum (ARB) tokens, incurring significant losses of over $400,000.
According to data monitored by on-chain observer BitcoinEmber, the first whale address "0x1dd9" sold 2.03 million ARB, with an average selling price of $1.14 USDT, suffering a loss of approximately $160,000. The address still holds 500,000 ARB.
The second whale address, "0xca71," unloaded 1.7 million ARB at an average selling price of $1.16 USDT, leading to a loss of about $270,000. Currently, the address only has 50,000 ARB in SushiSwap's pair liquidity.
This sudden move follows recent controversy surrounding the Arbitrum Foundation's token allocation process, which led to a 6% drop in the price of the ARB token.
As reported by U.Today, the Arbitrum Foundation has come under fire from community members who feel their input and concerns regarding the proposed distribution of 750 million ARB tokens have been overlooked.Nonetheless, the foundation maintains that the decentralized governance system is operating as planned, and that some decisions are necessary prior to a more extensive rollout.
Addressing the dispute, the foundation recognized the vibrant debates taking place on its governance platforms and provided further context to the recent allocation of millions of ARB tokens. They explained that 40 million were extended as a loan to a seasoned player in the financial markets sector.