Optimism (OP), a popular altcoin that is also in demand in Turkey, is gearing up for a major unlocking event. The entry of multimillion-dollar OPs is worrying some investors. So what’s going to happen in this unlock process tomorrow? Here’s what you need to know…
More than 386 million altcoins will hit the market tomorrow
More than 386 million Optimism (OP) tokens, worth $587 million at current prices, are unlocked tomorrow. These are scheduled to be unlocked on May 31, as the initial vesting period for first contributors and investors to the ecosystem has ended. This raises concerns of downward price pressure. The OP unlock on May 31 is one of the biggest unlock events planned for this year. While the current total circulating supply consists of 335 million OP tokens, unlocking could result in an increase in the circulating supply by more than 100%.
According to analysis by token unlock research firm Unlock Calendar, the Optimism unlock is likely to create significant selling pressure for the native OP token, largely as early-stage investors are reaping huge returns. Optimism’s largest seed investors include crypto venture capital firms Paradigm, Andreessen Horowitz (a16z), and IDEO CoLab Ventures. According to data from CryptoRank, investment firms participating in the seed round made a hefty profit from the OP. Paradigm and IDEO have now grown more than 10,000 percent since their initial investment. On average, however, the average purchase price for venture capital firms appears to be around $0.24. This means that companies currently earn a total of 529 percent.
OP price hasn’t been moving so well in recent months
cryptocoin.com As we have also reported, unlocking tokens is very important for the market. This process is scheduled events where tokens allocated to early stage investors and key development contributors are “released” after being frozen for a certain period of time. Crypto projects often “lock-in” tokens to avoid large asset sales that can have a significant impact on price during periods of low liquidity. Optimism aims to make transactions and activities on the Ethereum network faster, cheaper and more efficient. It is known as a layer-2 scaling solution. The OP token is the management token of the Optimism network.
On June 1 last year, Optimism held its first airdrop. Thus, it distributed OP tokens to around 250,000 addresses associated with the network’s initial users. On February 9, 2023, the second major airdrop took place and more than 11 million OP tokens were distributed to 307,000 unique addresses. Airdrops resulted in short-term trading activity. However, the price of the OP token has been in an overall downward trend for the past few months. It also took a significant hit in the short term before the unlock event. The coin is currently trading at $1.51 each, down 8.5 percent in the last 24 hours. The OP hit an all-time high of $3.54 on February 24, 2023. It has since lost more than 50 percent of its value.
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