March 27, 2024
Optimism OP Token Slides 10% Ahead of $30M Unlock
Latest Cryptocurrency News

Optimism OP Token Slides 10% Ahead of $30M Unlock

Optimism’s native token, OP, has experienced a significant price decline, leading the losses among the top 50 cryptocurrencies. The token fell by as much as 10% in the week leading up to a scheduled $30 million token unlock.

According to data from TokenUnlocks, approximately 24.16 million OP tokens, which represent around 3% of the circulating supply, are set to be unlocked on September 30th.

At the current market prices, this token unlock will introduce a little over $30 million worth of OP tokens to the market. Of this, $15.49 million will be allocated to core contributors, while $14.26 million is reserved for investors.

Token unlocking events are a common practice in the cryptocurrency space, allowing project teams to gradually release tokens rather than flooding the market with them all at once. However, such events are often viewed by investors as potential price pressure points, as the newly available tokens can increase selling pressure. Currently, the price of the OP token is trading flat at $1.26 for the day, following a brief 3% rally in the past 5 hours, according to CoinGecko data.

Earlier in September, Optimism announced plans to sell $160 million worth of OP tokens to private investors. Additionally, on September 19th, the project disclosed its third airdrop, distributing 19.4 million OP tokens to over 31,000 addresses involved in delegation activities related to the Optimism Collective, the network’s decentralized autonomous organization.

Image by Freepik

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