Members of Arbitrum’s decentralized autonomous organization (DAO) are discussing a potential clawback of funds allocated to build a gaming ecosystem on the network, citing a lack of progress and transparency. 

On March 24, DAO member Nathan van der Heyden submitted a proposal calling for the recovery of unused funds allocated to the Arbitrum Gaming Catalyst Program (GCP). The program, launched in 2024, aimed to position Arbitrum as a leading platform for onchain gaming development.

Van der Hayden said that the GCP was approved when projections were “exceptionally optimistic.” He added that this had “proved unsustainable.”  

“We must wind down GCP activities and secure all possible funds in order to safeguard the DAO’s funds and restore investor confidence in the ability of this DAO to allocate capital,” van der Heyden wrote in the governance forum post.

The community member also said the GCP had been reluctant to document its activities and that the program was not delivering on its promises. 

Source: Nathan van der Heyden

Arbitrum proposal splits DAO sentiment 

Another DAO member seconded the proposal, saying the community must secure what is left of the funds:

“The DAO should step in now and secure what is there and then think about a good and meaningful way of going forward.” 

While many others agreed to an immediate clawback of the funds, some said it may be counterproductive. One DAO member said that while the motivation may be valid, they favored a more constructive approach.

“The desire to protect DAO funds and ensure transparency is valid, but immediately resorting to a complete clawback seems overly harsh and potentially counterproductive,” they wrote. 

The DAO member suggested phased clawbacks instead of immediately taking the program’s funding back and proposed flexible reporting standards to allow a more streamlined approach for the GCP. 

Arbitrum token declined 81% since the GCP launch 

The GCP was introduced on March 12, 2024, as a way to fuel the growth of Web3 gaming within the Arbitrum ecosystem.

It allocated about 225 Arbitrum (ARB) tokens worth roughly $468 million. The funds went to investing in promising studios and games for network development and establishing Arbitrum as a leader for onchain gaming. 

However, the program coincided with a $2.2 billion token unlock, which may have caused the token’s price to drop. By June 2024, the tokens allocated to the program were only worth about $215 million, more than 50% less than their original value. 

At the time of writing, ARB tokens are trading at $0.38, 81% down from its price during the GCP launch. 

Arbitrum token’s decline since the GCP launch. Source: CoinGecko

Another project has also begun implementing a plan to navigate the bearish market. On March 14, ZKsync sunset its liquidity rewards program ZKsync Ignite, saying that current market conditions had influenced the decision to end the program. 

Related: Axie Infinity teases new Web3 game as NFT outlook turns positive

Broader decline Web3 gaming funding 

The Arbitrum DAO proposal also comes amid a decline in Web3 gaming investments. Toshiyuki Otsuka, the founder of GameFi platform Snpit, told Cointelegraph that factors like market volatility and oversaturation of low-quality projects are slowing investment in Web3 gaming. 

“Many investors are taking a more cautious approach, waiting to see which projects can demonstrate long-term viability before committing capital,” Otsuka said. 

Otsuka added that the speculative rush of the past few years has given way to a more sustainable investment landscape for Web3 gaming, where only the most promising players are able to secure funding. 

Magazine: Meebits and CryptoPunks are like Hot Wheels for adults: New MeebCo owner Sergito

Security concerns remain the biggest obstacle to the mainstream adoption of cryptocurrency payments, as hacks and phishing scams continue to damage the industry’s legitimacy.

More than 37% of investors identified security risks as the main barrier to using cryptocurrency for payments, according to a survey of 4,599 users conducted by Bitget Wallet as part of its latest Onchain Report shared with Cointelegraph.

Still, 46% of users said they preferred crypto payments over fiat for their speed and efficiency.

Source: Bitget Wallet Onchain Report

Bitget Wallet has implemented multi-layered protection mechanisms to make security a “top priority” and inspire more confidence in crypto payments, according to Alvin Kan, chief operating officer of Bitget Wallet:

“This includes MEV protection, which is now enabled by default across major chains like Ethereum, BNB Chain, and Solana, helping users avoid common risks like front-running and sandwich attacks. “

“We also introduced smart authorization detection via our GetShield engine, which actively scans smart contracts, DApps, and URLs to flag malicious behavior before users sign anything,” he told Cointelegraph.

Bitget Wallet’s operations are backed by a $300 million user protection fund as an additional layer of assurance in case of an “asset loss due to platform-level issues.”

Concerns over crypto payment security by region. Source: Bitget Wallet Onchain Report

Security concerns have plagued the industry, especially since the emergence of a new type of phishing attack known as address poisoning or wallet poisoning scams, which involve tricking victims into sending their digital assets to fraudulent addresses belonging to scammers.

Victims of address poisoning scams were tricked into willingly sending over $1.2 million worth of funds to scammers in the first three weeks of March.

While Gen X users cite security as their top concern, Gen Z users prioritize usability and cost-efficiency, Kan said.

Related: DWF Labs launches $250M fund for mainstream crypto adoption

Africa and Southeast Asia lead in crypto payment adoption

Bitget Wallet’s report found that 52% of African respondents and 51% of Southeast Asian respondents showed interest in crypto payments, driven by high remittance costs and limited banking access.

Interest in crypto payments by region. Source: Bitget Wallet Onchain Report

To help the world’s unbanked regions, Bitget Wallet offers simplified onboarding with non-custodial wallets that don’t require a traditional bank account, Kan said, adding:

“With support for over 130 blockchains and stablecoins, users can easily send and receive value globally, using assets that maintain purchasing power.”

“Local fiat on-ramps and multichain support ensure that users can tap into crypto without needing deep technical knowledge or centralized platforms,” he added.

Related: Crypto security will always be a game of ‘cat and mouse’ — Wallet exec

In Latin America, high transaction costs associated with traditional wire transfers are the main factor driving users to adopt crypto payments, Kan said.

Such remittance fees averaged 7.34% during 2024 if they involved bank account transfers, according to Statista.

Magazine: Fake Rabby Wallet scam linked to Dubai crypto CEO and many more victims

Bitcoin (BTC) traders are celebrating as one of the best-known BTC price metrics finally flips bullish again.

The popular Hash Ribbon tool, created by quantitative Bitcoin and digital asset fund Capriole Investments, has printed its first buy signal in a “macro bullish” event.

Hash Ribbon sparks $100,000 Q2 BTC price target

Bitcoin miners look set to make a comeback as the Hash Ribbon metric marks the end of their latest “capitulation” phase.

The Hash Ribbon effectively tracks potential long-term buy opportunities using hash rate — when miner profitability is at risk and network participants retire, this traditionally forms the capitulation which in turn leads to long-term price reversals.

These are monitored using two moving averages of hash rate: the 30-day and 60-day. Capitulations correspond to the former crossing below the latter, while the reverse is true for buy signals.

According to data from Cointelegraph Markets Pro and TradingView, the Hash Ribbon put in its latest buy signal on March 24. It is visible on both daily and weekly timeframes.

“This is macro Bullish,” popular trader Titan of Crypto wrote in part of a response on X.

BTC/USD 1-week chart with Hash Ribbon data. Source: Cointelegraph/TradingView

The previous Hash Ribbon buy signal came in July 2024. At the time, BTC/USD had yet to bottom out, and it took several months before a wave of upside began.

A similar scenario played out after the buy signal before that printed in August 2023.

Despite this, optimism over the latest development is already tangible after much of Q1 2025 was marred by disappointing BTC price action.

“One of the most accurate mid-term indicator is bullish now,” fellow trader Robert Mercer added.

“Expecting $BTC to go back above $100,000 in Q2 of 2025!”

Bitcoin ends “multimonth RSI downtrend”

As Cointelegraph reported, Bitcoin has already begun to tease bullish market turnarounds as March comes to a close.

Related: Bitcoin must reclaim this key 2025 level to avoid new lows — Research

Chief among them is the relative strength index (RSI) indicator, which like the Hash Ribbon is in the process of returning to form after months of suppression.

On weekly timeframes, RSI has confirmed a bullish divergence for the first time since September, while the daily chart is showing a support retest after breaking through a downward trend line in place since November.

“The multi-month RSI Downtrend is over,” popular trader and analyst Rekt Capital confirmed to X followers this week.

BTC/USD 1-day chart with RSI data. Source: Rekt Capital/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.