In a shocking twist, the Arbitrum Foundation just pulled the plug on a mega opportunity, and Nvidia’s chilly stance toward crypto is once again front and center.
Arbitrum (ARB) had been set to make headlines as the exclusive Ethereum partner for the Ignition AI Accelerator, a program backed by Nvidia and Tribe Capital to boost next-gen artificial intelligence projects.
The partnership could have opened massive doors: AI development credits, mentorships, and critical exposure within Nvidia’s sprawling network.
But just days before the big reveal, everything fell apart.
How Did Things Fall Apart Between Arbitrum and Nvidia?
According to a bombshell statement from the Arbitrum Foundation, Nvidia demanded that its name be scrubbed from any public-facing crypto announcements. In other words, Nvidia still wants nothing to do with blockchain.
Rather than stay silent and play along, Arbitrum made a bold move: they withdrew entirely.
“Arbitrum was not removed,” the Foundation clarified. “The team decided to disengage after Nvidia asked to remove its brand from crypto-related announcements, signaling a lack of long-term commitment.”
📢Statement of Clarification
We refer to today’s @CoinDesk article, “Nvidia Continues to Keep Crypto at Arm’s Length” (25 Apr 2025), we at Ignition AI Accelerator would like to clarify and set the record straight regarding a press release circulated in error.
Read more 👇
— The Ignition AI Accelerator (@theignitionai) April 25, 2025
This isn’t the first time Nvidia has iced out crypto projects either.
Despite the industry’s growing ties to AI innovation, Nvidia has a long history of distancing itself, dating back to CEO Jensen Huang’s infamous “crypto hangover” comments in 2018 and the company’s $5.5 million fine over how it reported crypto-related GPU sales.
Even today, Nvidia’s official accelerator programs, including Ignition and Inception, explicitly ban crypto startups from participating. That leaves blockchain innovators in the cold while AI-native startups get first-class treatment.
Meanwhile, ARB holders are left wondering: Was walking away the right move?
Will Arbitrum’s decision to protect its brand, even at the cost of losing Nvidia’s infrastructure perks, ultimately pay off?
The market reaction has been surprisingly resilient so far. But with Arbitrum sitting at the crossroads of AI and crypto innovation, the next moves will be critical. Let’s take a quick look at how the ARB price is shaping up for April’s close.
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ARB Price Analysis: How Has Arbitrum Crypto Reacted to Nvidia FUD?
As Sunday markets react to the Arbitrum news, ARB trades at a market price of $0.34 (representing a 24-hour change of -2.44%).
This comes just 4 days after the ARB price broke high above a descending trendline that dominated price action for the past 2 months.
(ARBUSDT)
Now stabilizing and consolidating below further resistance at $0.38, the ARB price could risk a breakdown to test stability at the lower trend line in the wake of the news.
And this wouldn’t be entirely unexpected even without Nvidia weakening the crypto project’s fundamentals, as the RSI momentum indicator has shifted from high to minor bearish divergence at 58.
Therefore, it seems likely that the ARB price will struggle at current levels into Monday, possibly with a bearish trajectory.
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