Epic Arbitrum Showdown: Crypto Whales Battle For Dominance Amid Governance Chaos

Whale activity has increased as major crypto holders continue to accumulate one Ethereum ETH/USD Layer 2 governance token, Arbitration ARB/USD.

On-chain analysis shows it Andrew Kang of Mechanism capital recently acquired an additional 1.51 million Arbitrum tokens at $1.23, using about $1.85 million worth USD coin USDC/USDreported The Block.

Kang, who is also a PleasrDAO member, has bought a total of 2.3 million ARB at an average price of $1.24 per token, according to Lookonchain analysts

Another prominent arbitrage whale, the largest individual holder of the project’s governance token, withdrew 5.85 million ARB tokens ($7.15 million) from the centralized exchange Gate.io.

This whale now has 17.62 million ARB, valued at around $21.5 million at today’s exchange rate.

A third whale acquired 795,381 Arbitrum governance tokens for approximately $1 million in USDC, at $1.26 per token.

This whale’s ARB holding is now 10.6 million ARB, worth $12.94 million.

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Meanwhile, a fourth whale address received an inbound transfer of 532,012 Arbitrum governance tokens, valued at around $661,000, bringing its total holdings to 4.58 million ARB, worth approximately $5.59 million.

These acquisitions come after earlier reports that arbitrage whales have held on to their tokens despite ongoing governance turmoil.

The price of Arbitrum’s governance token has temporarily halted further falls in response to the recent drama.

Arbitrum addresses governance issues by walking back on the controversial Arbitrum Improvement Proposal 1 (AIP-1) which planned to award 750 million governance tokens, worth around $1 billion at the time, to the Arbitrum Foundation.

The proposal appeared to move forward without token holder approval. Members of the project’s decentralized autonomous organization voted overwhelmingly against it.

Arbitrum is now seeking to incorporate community input and implement new AIPs, such as AIP-1.1 and AIP-1.2.

The Arbitrum Foundation has committed to not moving any of the remaining 700 million tokens in the administrative budget wallet until the DAO approves an acceptable budget and smart contract locking plan.

The foundation also released a transparency report on its initial formation, along with the revised proposals.

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