Offchain Labs to begin acquiring ARB through strategic purchases to support the ecosystem’s future growth

Source Cryptopolitan

Offchain Labs revealed it had launched a strategic plan to increase its Arbitrum holdings. The Arbitrum R&D team announced it would purchase Arbitr over time through open market and other transactions.  

Offchain Labs, the research and development team behind Layer 2 Arbitrum, revealed a strategic plan to purchase Arbitum. The team said it would increase its native token holdings in its treasury. 

Offchain Labs plans to acquire more ARB to its treasury amid growing ecosystem  

Offchain Labs said it planned to acquire tokens from the open market and other transactions. It added that the purchases would be based on predetermined parameters outlined in the plan. The firm said it was reinforcing its commitment to the ecosystem and strengthening its alignment by adding more Arbitrum to its treasury. 

It clarified that it would purchase the tokens gradually rather than a one-time purchase. The team acknowledged that the ecosystem was expanding through technical advancements such as Orbit, Arbitrum BoLD and Stylus. Offchain Labs added the ecosystem also experienced expansion through strategic DAO initiatives. The firm highlighted that acquiring more ARB tokens would add confidence among investors. It said the strategy could boost community engagement in the Arbitrum ecosystem. 

The firm noted that increased participation could lead to new investments and more partnerships. The announcement came as Arbitrum prepares its upcoming token unlock of 92.63 million.

Coinmarketcap data revealed that the Arbitrum token faced increased volatility after its peak in January 2024. The data also revealed that the token recorded an 8% decline in the past 24 hours amid the overall market tumble. 

DeFiLlama data indicated that Arbitrum remained one of Ethereum’s top Layer 2 solutions. It added that the token has a total value locked of $2.391 billion. The data also indicated that Arbirum DAO holds 2.79 billion ARB. 

Arbitrum DAO sparks controversies over latest proposals  

Offchain Labs move coincides with criticisms in Arbitrum proposals. The Arbitrum DAO growth management committee proposed using 7,500 ETH to invest in DeFi protocols outside Abitrum. Committee members expressed they saw it as a missed opportunity to promote Arbitrum’s builders. They argued that at least 10% of the 7500 ETH should be spread across local protocols. The members suggested that the DAO should emphasize fostering growth within the ecosystem. 

The Arbitrum DAO approval of a proposal supporting Web3 game development on the network attracted criticism from the community. The community highlighted the program failed to achieve its goals. They claimed delays in progress depleted user trust. 

Spot on-chain data revealed that Offchain Labs’ last purchase of ARB was in September 2023. The developer purchased 1.799 million tokens on Binance at $0.78 per token.

Offchain Labs CEO Steven Goldfeder commented on Trump’s executive order establishing the U.S crypto reserves. He suggested that the reserves should be just Bitcoin for now. The CEO noted that Bitcoin was non-controversial and hard to argue against. 

Goldfeder argued that Bitcoin established itself as a universally accepted medium of exchange. He added that the safest move for the United States government would be to focus on it exclusively. 

The CEO warned regulators may not know the intricacies of all cryptocurrencies. He added that allowing other assets into the reserve would bring more danger. Goldfeder highlighted the crypto community could accomplish everything by having Bitcoin in the reserve.

The CEO added that Arbitrum could be considered for an initiative focused on American-made cryptocurrencies. He noted that Arbitrum’s developers came from Princeton University, and initial development occurred at Offchain Labs.  Goldfeder added that Arbitrum should be on the list if such an initiative existed.

Bitcoin sank to a four-month low after Trump’s crypto reserve announcement. Macroeconomic developments on Canada and Mexico trade tariffs offset Washington’s pro-crypto policies. Investors raised concerns over the government’s failure to reveal specific measures on how it would acquire more cryptocurrencies for the reserve.  Crypto-related stocks registered declines despite the strategic reserve plan announcement. 

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