Binance exchange-listed popular altcoin’s managing foundation will sell 19.5 million tokens. In the coming days, Ethereum layer2 solutions were expected to gain more interest and see price increases. However, it seems that OP Token will be an exception.
Will OP Coin Decline?
At the time of writing, the price has not shown much concern for this development, but the team announced it will sell 19.5 million tokens valued at $87 million (current market price). For investors weary of massive unlock events, this has become the norm.
On the other hand, looking at the brighter side, we are in a bull market and the demand for layer2 solutions is lively, with expectations for this trend to continue with Dencun. From this perspective, it’s possible that there won’t be a significant negative impact on the price.
OP Token has another unlock event worth $110 million in 21 days. 2.4% of the circulating supply will enter the market before the month ends. Tokens with high inflation rates should be periodically divided by their supply targets and priced accordingly in the long term.
For example, by the end of this year, the circulating supply will be approximately 3 billion, which means, to maintain the current unit price, the market value should be $13.5 billion (3*4.5). So, what is the market value now? At the time of writing, it stands at $4.6 billion.
Announcement from the Optimism Foundation
A few hours ago, the foundation announced that these tokens would come from the unallocated treasury. The full statement is as follows;
“Optimism has conducted a private sale of approximately 19.5 million OP tokens. The tokens are subject to a two-year lock-up period. During the lock-up, the buyer can transfer the tokens to independent third parties for governance participation.
The tokens come from the Unallocated portion of the OP Token treasury and are part of the original operating budget, which constitutes 30% of the Foundation’s initial OP token supply. You will see transfers in the next few days. All these are planned transactions, and we are sharing an alert to inform the community. Since this is a private sale, terms and the buyer are not disclosed.”
