Furthermore, Eden Au, a research director at a Web3 firm, said Arbitrum Foundation made a proposal, AIP-1, to allocate the moved-out tokens for administrative and operational costs. However, approximately 70% of ARB holders voted against it. The researcher claimed the proposal was merely formality while sharing blockchain data that showed the transfer of 50.5 million ARB from the foundation.Notably, these episodes negatively affected the price of ARB, pushing it from about $1.5 to nearly below a dollar. Additionally, the community accused the foundation of deliberately dumping the tokens on them merely weeks after launch.However, in a detailed thread on Sunday, Arbitrum said that “the goals of AIP-1 were to engage the community about initial decisions and ultimately have token holders signal their support.” It also clarified that there was no 50 million ARB sale as indicated on blockchain data.The foundation said 40 million ARB tokens were allocated as a loan to a sophisticated actor in the financial markets. At the same time, the remaining 10 million ARB was converted to fiat to cover operational costs.The post Arbitrum (ARB) Token Dump and Arbitrum Community FUD Explained appeared first on Coin Edition.