Optimism's OP Token Faces Steep 10% Drop Ahead of Major $30M Token Unlock
Summary:
The OP token of cryptocurrency firm, Optimism, has shown a major decline in value, dropping 10% in the past week. The decrease comes ahead of a significant event where $30 million worth of tokens are set to be unlocked on September 30, potentially leading to a further fall in prices. Despite a temporary 3% rally, the token's price remains stagnant at $1.26. Optimism is also planning to sell $160 million of OP tokens to private sellers. In addition to these market activities, the firm recently conducted its third airdrop, distributing 19.4 million tokens among participants associated with its decentralized network, the Optimism Collective.
The Optimism cryptocurrency's OP token leads the pack in falling prices amongst the top 50 cryptocurrencies, plunging 10% during the week. This decline precedes the unlocking of $30 million worth of tokens. Approximately 24.16 million OP tokens, making up around 3% of circulating supply, set to be unlocked on September 30, as data from tokenomics platform Token Unlocks highlights. At the current rates, over $30 million in OP tokens will flood the market as a result of this unlocking, with $15.49 million going to foundational contributors and investors receiving around $14.26 million.
Many primary crypto projects consider unlocking tokens an integral feature, with a common approach being the gradual introduction of tokens to the market instead of a sudden influx. Nevertheless, these events often symbolize upcoming price pressures to investors as a fresh batch of tokens is earmarked for sale.
Presently, the OP token stands still at $1.26, despite a short-lived 3% surge during last five hours according to CoinGecko's price data. Optimism announced on September 21 that they intended to sell off $160 million worth of OP tokens to private organizations as a part of a strategic sale. Starting today, a series of transactions intended to roll out about 116 million OP tokens, constitutes planned transactions Optimism alerts its community.
On 19th September, Optimism pronounced its third airdrop, distributing 19.4 million OP tokens throughout over 31,000 addresses that participated in the delegation tasks related to the Optimism Collective, which is the network's decentralized autonomous organization or DAO. An off-topic note to highlight - the Asia Express story reports that following a recent scandal, JPEX staff evacuated an event and in other news, Mt. Gox is facing difficulties and Diners Club is getting involved with cryptocurrency.
Published At
9/26/2023 3:15:58 AM
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