Cryptocurrency enthusiasts may have heard about Wintermute Trading dumping Optimism (OP) tokens worth millions over the weekend. This move comes as a considerable portion of Optimism tokens is about to unlock on June 1—a development that some may see as a negative signal for OP price.
Wintermute has been known for its association with Optimism, providing the supply of tokens and maintaining liquidity in the market. The company began offloading Optimism tokens on Sunday by selling 1,000 of them, but ultimately ended up disposing of 2.65 million OP tokens worth nearly $5 million over a 24-hour period. A single transaction to Binance constituted 2 million of these tokens, all but confirming Wintermute’s intent to unload them before the unlocking event.
According to the source, 9% of the total Optimism token supply, which translates to 386 million OP tokens worth more than $626 million, is set to unlock on June 1. Of this amount, 4.75% belong to core contributors, and 4.25% belong to investors. Wintermute received over 19 million OP tokens from Binance and Coinbase between November and January 2023. At the time of writing, the wallet still holds 15.38 million tokens with a value of around $25 million.
As for the OP price, it has been relatively stagnant, mostly trading sideways for the past week at around $1.62. The 24-hour high and low are $1.61 and $1.67, respectively. Although trading volume has seen a slight uptick in the last day, investors are left to consider whether this increase in interest will be enough to counterbalance potential bearish pressure.
Token unlocks are often considered a bearish price indicator, as the increase in the supply of a cryptocurrency can lead to a decrease in its value. Consequently, some investors may be worried about OP’s price falling in the wake of the upcoming unlock. For others, however, this development could be viewed positively, with the market eventually absorbing the increased supply, leading to a more stable and potentially valuable ecosystem.
In sum, the market’s reaction to Wintermute’s sell-off of its Optimism tokens and the impending token unlocks could serve as a crucial insight into the cryptocurrency’s future. While some may expect the OP price to crash, others could argue that the market’s response to such events might just end up being a testament to its resilience. Nonetheless, caution is advised, as both market conditions and personal financial risk remain unpredictable.
Source: Coingape
