Arbitrum Price Prediction as $1 Billion ARB Proposal Goes Wrong – Here's Where ARB is Heading Now

cryptonews.com:

After a highly publicized airdrop, ARB, the new token in the Arbitrum ecosystem exploded to $11.80 – the all-time high before dumping to trade at $1.21, which represents a 90% downswing from the record high.

This massive pullback is mainly attributed to an overwhelming selling pressure caused by the ‘buy the news narrative.” Investors positioned themselves for the March 23 airdrop but started dumping ARB tokens immediately.

In the last 24 hours, Arbitrum price lost another 5% although its trading volume is still above the 1 billion mark after increasing by 80%, in the same period.

The ecosystem’s first governance proposal set off to a rocky start over the weekend, which sought to allocate 750 million ARB tokens, worth around $1 billion to the Arbitrum Foundation.

According to the communication from the foundation, those ARB tokens would be channeled into a “special grants” program focused on fostering growth on the layer 2 solutions protocol, Arbitrum.

According to AIP-1, Arbitrum Foundation would have complete discretion in allocating the nearly $1 billion sum, and ARB holders would not be able to participate in the decision-making process.

In other words, due to the centralized nature of the Arbitrum Foundation, the special grants program would be put through a “full on-chain governance” procedure, which allows token holders to provide direction to the ecosystem.

The Arbitrum Foundation was forced to come clear on some of the decisions it had made regarding the proposal and other issues without the community’s input.

In the clarification on the ratification of AIP-1, the foundation told members that before the decentralized autonomous organization took the reins, some decisions and actions were paramount to the success of the