Blockchain Buzz: $587M Optimism Tokens Set for Imminent Release – Investor Bites

SNEAK PEEK

• Optimism’s early investors unlock $587 million worth of OP tokens.
• The token might increase selling pressure, potentially dropping prices.
• The optimism token’s value has shown a downward trend since February.

The blockchain world is abuzz with the imminent release of Optimism tokens into the market. According to reports, the initial vesting period for early investors and contributors has concluded, leading to $587 million worth of OP tokens being unlocked. These tokens are set to hit the open market today.

This event will effectively double the supply of these Ethereum scaling protocol tokens, marking a significant event in Optimism’s journey. The unlocking of tokens allows their holders to sell or swap them as they see fit. In the case of Optimism, more than 386 million tokens that early contributors and investors are currently holding are about to become liquid. 

With OP’s circulating supply standing at 335 million tokens this morning, the unlock will substantially increase the number of available tokens in the market. However, such massive token unlocks often bring along the specter of increased selling pressure, potentially causing prices to drop. 

For Optimism, the prices have already fallen 7% in anticipation of the unlock. Early investors, many of whom are sitting on significant profits, might decide to take profits, potentially resulting in a surge of selling activity.

Moreover, the liquidity on OP token pairs across decentralized and centralized exchanges is currently under $10 million, meaning that even a single sell order of $600,000 could cause prices to drop an additional 2% on platforms like Binance.

Unfortunately, the Optimism token has been experiencing a general downward trend since February, sliding from $3 to $1.5. This downturn is particularly noteworthy given that Bitcoin and Ethereum posted gains of at least 50% during the same period.