July 21, 2024
Private Sale Optimism Secures $160M via OP Token Sale
Latest Cryptocurrency News

Private Sale: Optimism Secures $160M via OP Token Sale

Ethereum’s layer-2 scaling solution, Optimism, recently revealed its intention to sell 116 million OP tokens to seven private buyers as part of its treasury management strategy. This sale, valued at approximately $159 million at current prices, had raised concerns among some observers that it might lead to a significant drop in OP token prices due to the potential “dumping” of tokens onto the market. However, the sale being conducted privately makes it unlikely to have a substantial impact on OP token prices.

It’s important to note that these tokens are being sourced from the unallocated portion of the OP token treasury, which means they are not part of the circulating supply. Optimism has implemented a two-year lockup period for these tokens, preventing buyers from selling them on secondary markets. Nevertheless, buyers have been granted permission to delegate these tokens to unrelated third parties for governance purposes.

Optimism clarified that this token sale was part of its original plan and was fully considered in its “original working budget,” which allocated 30% of the initial token supply for such purposes.

This announcement comes shortly after Optimism’s third airdrop, in which 19.4 million OP tokens were distributed to over 31,000 addresses that participated in delegation activities related to the network’s decentralized autonomous organization (DAO), Optimism Collective.

Optimism, alongside Polygon and Arbitrum, remains among the most widely used layer-2 scaling solutions in the blockchain industry. Although it lags behind Arbitrum in terms of total value locked, Optimism surpassed Arbitrum in total transactions in August. This surge in activity was primarily fueled by Coinbase’s sandbox and the identity verification project known as Worldcoin.

Image by DilokaStudio on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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