The altcoin Arbitrum (ARB), which was once on the agenda, has lost 20% in the last 1 month in line with the general decline in the crypto money market and fell below 1 dollar.
However, this decline coincides with some institutional investors selling their ARB holdings, according to onchain data.
One of the vendors is Mandala Capital, a venture capital firm focused on blockchain and crypto projects. The company invested a total of 3.6 million ARBs in OKX within two hours, amounting to $3.67 million at an average price of $1.01.
Notably, Mandala Capital had accumulated its ARBs mostly through liquidity pools on decentralized exchange Uniswap between March 23, 2023 and now. In total, they added 19,000 ETH and 7.04 million ARB liquidity to the pools and withdrew 16.6 thousand ETH and 10.67 million ARBs.
This means that 2.4 thousand ETH was exchanged for 3.63 million ARB. From the five-month average price of ETH of $1,856, this initial investment of 2.4k ETH would be worth $4.45 million.
Hence, it is estimated that the firm would have lost $770,000 had it sold its ARB investment now.
Another vendor is CAP Finance, a venture capital firm. The company sold one million ARBs at an average price of $1.02 for $1.02 million USDC 18 hours ago.
However, CAP Finance received 2.96 million ARBs in the DAO airdrop, a token distribution to eligible users by the Arbitrum DAO, a decentralized organization that manages the Arbitrum network. The company has since sold two million ARBs for $2.18 million USDC at an average price of $1.09. It is thought that the company still has $894,000 worth of ARB altcoins.
*Not investment advice.