Arbitrum Price Slumps After Proposed Ban and KelpDAO Hack Fallout
The Arbitrum ecosystem is facing pressure following the KelpDAO hack. Three projects have been proposed for permanent ban from all future ArbitrumDAO programs after allegedly misusing 457,553 ARB in grants. The network has $71 million worth of ETH locked due to a U.S. legal restraining notice tied to the hack.
The current price of ARB is at $0.1487, down 12.83% on the day. It has weakened below its key short- and medium-term moving averages while remaining above longer-term trend support. The price dynamics show a negative momentum with technical barriers in place.
The Arbitrum Watchdog Committee's proposal to ban projects may increase caution among other ecosystem participants. Meanwhile, Robinhood Chain's recent contribution of $360,000 to the DAO reflects sustained income from third-party Layer 2 partnerships. However, the ongoing legal and operational risks associated with the KelpDAO hack continue to weigh on sentiment and liquidity.