The Optimism protocol has announced that it will unlock 9% of its native crypto, OP’s total supply on May 31, 2023. This equates to approximately 386.5 million Optimism (OP) tokens, worth an estimated $587.5 million. However, the optimism price witnessed a 6% decline in the last 24 hours leading to the unlock event.
The first OP unlock event will be performed for core contributors and investors once the initial vesting period concludes. Data indicates that 204 million OP tokens, worth about $312.6 million, will be distributed among core contributors, while investors will receive 182.5 million OP tokens, roughly valued at $279 million. Presently, there are 335 million OP tokens in circulation, creating a market cap of around $511 million.
It is essential to recognize that the number of tokens scheduled to be unlocked is more than the current circulating supply, accounting for 9% of its total supply. This event raises concerns among traders who fear a massive selling off may occur.
Spot On Chain reported that Wintermute, one of Optimism’s series B investors, has recently made some significant transactions ahead of the unlock event. This investor moved 2.65 million OP tokens, worth about $4.31 million, to the crypto exchange Binance. As a result, the Optimism price dropped by over 30% in the last 24 hours. At the time of writing, OP is trading at an average price of $1.53, and its 24-hour trading volume increased by 37%, reaching $90 million.
While the unlock event could generate substantial selling pressure for Optimism, it may also provide an opportunity for new investors to join the market. On one hand, there is a risk associated with the increase in circulating supply, potentially causing a decline in token price. On the other hand, it could pave the way for the growth of the Optimism community and bring new opportunities for the project.
It is crucial for current and prospective investors to conduct thorough market research before making any investment decisions. This event serves as yet another reminder of the volatile nature of the crypto market and the importance of staying informed and educated.
In conclusion, the upcoming unlock event for Optimism presents both challenges and opportunities for the blockchain community, investors, and users. As the market reacts to this significant development, it is crucial to remain discerning and vigilant in making investment decisions. Keep in mind that the presented content is subject to market conditions and the author’s personal opinion; always perform due diligence before making financial decisions.
Source: Coingape
