Recent activity in the cryptocurrency Arbitrum has attracted attention after a group of so-called whales, major owners of ARB tokens, decided to move their coins to cryptocurrency exchanges. This followed the release of a substantial amount of tokens earlier this month, which has roiled the market.
Four wallets move 11.34 million ARB tokens
On March 23 discovered the blockchain data platform Lookonchain that four wallets jointly moved 11.34 million ARB tokens to the cryptocurrency exchange Binance. This move, which occurred following the unlocking of previously acquired tokens worth $2.32 billion on March 16, represented a value of approximately $18.5 million at the time of transfer.
The crypto community is reacting divided to these recent fund moves within the Arbitrum ecosystem. While a user on the social platform
These recent transfers are not the first of their kind; Last week, Lookonchain reported that 11 whales had moved $58 million worth of ARB tokens to exchanges. This happened shortly after Arbitrum, a layer-2 blockchain project, announced it would release $2.3 billion in tokens after a vesting period. Of these tokens, 673.5 million were allocated to advisors and team members, and 438.25 million to investors.
Downward trend in ARB prices since unlocking
The release of these tokens was done via a so-called ‘cliff release’, where all tokens became available at once. This led to speculation about a possible mass sale, although some hoped that this scenario would not materialize.
Since the tokens were unlocked, ARB prices have shown a downward trend. For example, the price of the ARB token fell from a peak of $2.22 on March 13 to $1.84 on March 16, the day of the unlock. In the following week, the price fell further to $1.48, before rebounding to $1.79 on March 21. At the time of reporting, the token’s price is around $1.70, down almost 29% from the all-time high of $2.39 on January 12, according to data from CoinGecko.
These developments may not indicate the end of the downward trend in prices. According to crypto fortress tracker Token Unlocks, Arbitrum faces a new challenge with the planned release of another 92.65 million ARB tokens on April 16, intended for advisors, team members and investors. The market is waiting to see how this upcoming event will impact prices and overall sentiment around Arbitrum.
Source: https://newsbit.nl/grote-bewegingen-in-arbitrum-tokens-trekken-de-aandacht/
