Ethereum layer 2 blockchain Optimism’s OP altcoin, The price dropped briefly on Thursday after rumors spread from Twitter that the multi-signature wallet had been hacked.
Optimism’s core team was pretty adamant that it wasn’t hacked. Despite this, the OP token lost 10% in minutes, according to CoinMarketCap data, but managed to recover from this point.
Investors Seeing That $450 Million Transferred From Altcoins Thought It Was Hacked
On messaging platform Discord, the team explained that the fund movements were pre-scheduled transfers related to Coinbase Custody to investor wallets. According to Etherscan data, the value of the transferred funds is around 450 million dollars.
The team wrote the following on Twitter regarding the issue:
“We’ve been seeing some confusion lately regarding the OP’s transfer out of multisig. This is expected, today we have conducted a series of scheduled standard transfers to Coinbase Custody wallets from various investors at OP Labs PBC.
We will announce planned major transfers ahead of time to avoid further confusion in the future.”
We’re seeing some confusion about recent transfers of OP out of a multisig. This is expected—today we executed a series of planned standard transfers to the Coinbase Custody wallets of various investors in OP Labs PBC.
— Optimism (✨🔴_🔴✨) (@optimismFND) August 17, 2022
Thanks to the quick response from the developer team, the price of the altcoin rose this time and climbed from the low of $1.27 to $1.34. The price of the coin is still around $1.34 at the time of this writing.
After the crash, Optimism said it already “expected” some “confusion” over the unannounced fund transfer.
Also, the team said on Twitter, “We will be announcing major transfers planned ahead of time to avoid further confusion in the future.”
*Not investment advice.
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