Optimism has revealed its plans to promote 116 million OP tokens to seven non-public patrons. According to the replace, this sale is for treasury administration tokens.
Based on present costs, this sale will switch roughly $159 million value of OP tokens to the patrons. Given the sheer quantity of the sale, some traders imagine it’ll seemingly trigger a decline in OP’s worth.
Optimism Announces Sale OF 116 Million OP Tokens Following Third Airdrop Event
In element, Optimism posted a neighborhood replace on September 20 on promoting roughly 116 million OP tokens. The tokens are from the unallocated portion of the OP Token treasury, and these tokens are a part of the Foundation’s authentic working funds of 30% of the preliminary OP provide.
According to the replace, the tokens are topic to a two-year lockup. During the lockup interval, the purchasers can delegate the tokens to 3rd events for on-chain governance.
Also, the announcement said that from September 20, a number of transactions will happen with the launched tokens. It famous that the transactions are pre-planned.
It bears mentioning that this token sale comes a number of days after Optimism announced its third OP airdrop to reward neighborhood members for participation in on-chain governance. Optimism launched over 19 million OP tokens to over 31,000 distinctive addresses.
Meanwhile, the OP neighborhood obtained the announcement with mixed reactions, with one consumer expressing disappointment. He expressed considerations that the token sale will improve Optimism’s circulating provide, impacting the worth.
Optimism’s Private Token Sale: Will It Affect OP’s Price?
Some observers have expressed concern that the sale will have an effect on OP’s worth negatively, because the patrons could dump their tokens. However, there are a number of the reason why that is unlikely to occur.
Firstly, the sale is non-public, that means the patrons usually are not required to reveal their identities or intentions for the tokens. Therefore, it makes it troublesome for merchants to anticipate the patrons’ actions.
Secondly, the tokens are from the OP treasury’s unallocated portion and usually are not a part of the circulating provide. It signifies that the sale may have a minimal impression on the supply of OP on the open market.
Furthermore, the tokens are topic to a two-year lockup interval. The lockup prevents patrons from promoting them on secondary markets till at the very least 2025, decreasing the chance of a sell-off that would depress worth.
Overall, Optimism can fund its improvement by elevating capital from traders with out counting on the general public. Such motion might result in elevated demand for OP from bullish traders on the venture’s long-term prospects.
Historical Data Suggests Private (*116*) Could Boost OP Price
Other initiatives have held comparable non-public gross sales previously. Recall that Polygon raised $450 million final 12 months in a non-public token sale led by Sequoia Capital India. Also, in 2021, Arbitrum raised $120 million in a private token sale led by Lightspeed Venture Partners.
In each of those circumstances, the non-public token gross sales positively impacted the worth of the respective tokens. The Polygon MATIC’s worth elevated by over 50% within the two weeks following the announcement of the non-public sale.
Similarly, the worth of AAVE increased by 20% within the two weeks following Arbitrum’s non-public sale announcement.
Therefore, based mostly on this historic precedent, the non-public sale may benefit OP in the long term. However, be aware that the cryptocurrency market is unstable, and OP’s worth isn’t assured to extend.
Featured picture from Pixabay and chart from TradingView.com
