- Optimism Foundation recently made a sale of around 116 million OP tokens to approximately seven investors.
- The OP tokens had a valuation of $150 million at the time of the sale.
Optimism is a layer 2 blockchain that is operating on the Ethereum network. So, the team behind this token announced the sale of a massive number of OP tokens.
Optimism is Selling Off OP Tokens
- In a new update on their Twitter (X) handle, Optimism provided some details regarding a new transaction involving the team of this crypto project. So, Optimism Foundation, the development team behind this crypto project, made the confirmation. They sold around 116 million OP tokens. So, the number of investors in this particular transaction is about 7.
- At the time when they made this transaction of 116 OP tokens they were worth around $150 million. So, the team behind this project made a confirmation that there are some terms and conditions behind this sale. The first is that the tokens are subject to a two-year lockup. So, during this lockup period, the investors in this latest transaction can delegate the tokens to unaffiliated third parties for participation in governance.
Where are These Optimism Tokens Coming From?
- Another major question within the Optimism community is about the origin of this new token sale. So, community members want to know where these tokens are coming from. The team members behind this project provided an answer about the origin of this token. So, they say the tokens come from the Unallocated portion of the OP Token treasury.
- These tokens are part of the original roadmap of this crypto project. So, these new tokens in this transaction are part of the Foundation’s original working budget of 30% of the initial OP token supply. According to the Optimism Foundation, there are already schedules of transactions to transfer the OP tokens to the seven investors’ crypto wallets. So, what is the price reaction of the OP tokens to this new sale?
Market Price Reaction from OP Tokens?
- OP token price took a massive hit immediately after the announcement of the sale of 116 million tokens. So, according to the data from Coinmarketcap, the Optimism token is currently down by more than 4%. This is quite atrocious and shows how much damage the sale of a token can do to the price.
- Even a look at the weekly and monthly charts shows that the dip in the OP token started the day after the sale of the tokens. So, in the weekly chart, the price is down by more than 3%. On the other hand, there’s more than a 13% dip in the past month.
Conclusion
According to a new announcement from the Optimism Foundation, there was a sale of around 116 million OP tokens to around seven investors. So, during the sale of the tokens they are at a valuation of around $150 million. The team members say there will be a lockup period after this sale before the investors have full access.
Featured image from Coinmarketcap
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
