On May 31st, more than 386,000,000 OP tokens will be released into circulation, effectively doubling the current supply.
There are fears of a price drop as of May 31st when the original vesting period for early contributors and investors ends and more than 386 million Optimism (OP) tokens are set to be released.
The OP unlock on May 31 is one of the years most significant planned unlocks. With just 335 million OP tokens now in circulation, the unlock has the potential to raise that number by more than 100 percent.
Unlock Calendar, a company that studies token releases has concluded that early-stage investors holding on to huge profits might exert substantial selling pressure on the native OP token after the Optimism unlock.
CryptoRank reports that Paradigm and IDEO, two of the seed round’s investors, are up more than 10,000% since making their first investments.
However, it seems that the average buy-in price for venture capital firms is about $0.24, which means that at the moment, the businesses are sitting on a collective 529% gain.
Token unlocks are instances when tokens that have been “frozen” for a certain amount of time are then “released” to early-stage investors and important contributors to the development process. Most cryptocurrency projects take measures to guarantee their tokens are “locked up” so that huge asset sales don’t take place during times of low liquidity, which might have a major effect on the price.
Optimism is a layer-2 scaling solution that promises to improve the speed, cost-effectiveness, and scalability of Ethereum network transactions and activity. The Optimism network’s governing token is the OP token.
Optimism’s first airdrop, which distributed OP tokens to almost 250,000 addresses belonging to the network’s early adopters, went live on June 1 last year. More than 11 million OP tokens were airdropped to 307,000 different addresses on February 9, 2023.
Also Read: Over Ten Million Ordinals Have Been Registered for Bitcoin
