• Arbitrum, a layer 2 blockchain, recently airdropped over 1 billion ARBK tokens to its community.
• The Arbitrum Foundation came under fire for spending tokens without the approval of its holders, causing Fear, Uncertainty, and Doubt (FUD) for the asset.
• Despite this FUD, the trading volume of Arbitrum has seen a massive boost in the last 24 hours with total volume reaching over $1.17 billion.
Arbitrum Airdrop Sparks Controversy
Arbitrum, a layer 2 blockchain that recently airdropped over 1 billion ARBK tokens to its community in March, has been met with negative news after it was found that the Arbitrum Foundation spent tokens without approval from its holders sparking Fear, Uncertainty and Doubt (FUD).
Trading Volume Surges
Despite this FUD surrounding the asset, data from Coinmarketcap shows that the token’s trading volume jumped by more than 75% within 24 hours bringing its total trading volume to more than $1.17 billion – almost as high as its current market cap of $1.55 billion. This surge in trading volume suggests strong support from users despite the recent FUD surrounding Arbitrum.
ARB Token Defies Bears
The price of ARB initially dropped below $1.3 following news of token spending but quickly recovered above $1.2 defying bearish expectations and showing that bulls are still very much in control of the asset. Price estimates on Coinmarketcap show users expect the coin to rally another 20-30%.
The controversy around Arbitum is far from over as some members have called for an audit into where exactly their coins were spent while others continue to express their dissatisfaction with how the project has been managed so far.
Despite ongoing controversy regarding token spending and management decisions at Arbitum there is still strong support for token as evidenced by its rising trading volumes and price recovery despite bearish sentiment surrounding it.