A notable altcoin’s managing foundation listed on the Binance exchange is poised to divest a substantial amount of its tokens, amounting to 19.5 million units. This sale comes at a time when Ethereum‘s layer2 solutions are garnering increasing attention and are expected to continue their upward price trajectory. Despite the anticipation of enhanced interest in these solutions, the OP Token stands out with its upcoming massive sales event.
Market Impact of Token Sale
Currently, the market has not significantly reacted to this news. The involved team intends to offload tokens with a market value of $87 million. This move aligns with a trend where foundations orchestrate large-scale token unlocks, sparking caution among investors. Nevertheless, given the bullish market conditions and robust demand for layer2 solutions, a substantial price drop remains uncertain.
The OP Token faces yet another release event in 21 days, with $110 million worth of tokens or 2.4% of its circulating supply hitting the market by month’s end. It’s essential to consider high inflation rates when evaluating such tokens, as their long-term value should reflect periodic supply increases.
Projections estimate that the altcoin’s circulating supply will reach approximately 3 billion by year’s end. To sustain its current price, the market capitalization would have to rise to $13.5 billion. However, the current valuation stands at a more modest $4.6 billion.
Optimism Foundation Sheds Light on the Sale
The Optimism Foundation recently clarified that the tokens slated for sale are sourced from its unallocated treasury. The tokens sold will be locked for two years, though they may be transferred for governance purposes. This sale, part of the foundation’s initial operating budget, represents 30% of the initial OP token supply. The foundation assures that the forthcoming transactions are planned, aiming to maintain transparency with the community. The details of the sale, including the buyer and specific terms, remain private.