Optimism makes an optimistic bet on the future with a $160 million private token sale.
Optimism, a leading Ethereum Layer-2 scaling solution, has announced its intent to execute a private sale of 116 million OP tokens to a curated group of seven buyers. The move aims to bolster its treasury management and facilitate $159 million in transactions.
Initial concerns about the potential negative impact on the OP token's market price seem to be largely unfounded. The private nature of this sale indicates that the immediate market implications for OP token pricing are expected to be minimal.
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The tokens used in this sale come from an unallocated pool in Optimism's token treasury, leaving the existing circulating supply untouched. It accounts for 30% of their initial token supply.
Adding to this, Optimism's website clarifies that all tokens sold in this private transaction will be under a two-year lockup agreement. This condition prevents the buyers from immediately reselling the OP on secondary markets. However, the buyers can delegate these tokens for governance purposes to entities with no prior affiliations with them.
According to Optimism, this sale isn't spontaneous but rather a calculated move that fits within their original financial blueprint.
The announcement of this private sale follows closely on the heels of another significant event for Optimism. Two days ago, the platform initiated its third airdrop, allocating 19.4 million OP tokens to over 31,000 addresses participating in activities related to their decentralized autonomous organization, the Optimism Collective.
Optimism competes fiercely with Polygon and Arbitrum as one of the most utilized Layer-2 scaling solutions. Although it currently falls behind Arbitrum in total value locked, Optimism led the pack in transaction volume this past August, mainly due to heightened activity from Coinbase’s sandbox and Worldcoin.
The $160 million private sale of OP tokens is a strategic move by Optimism to strengthen its treasury while allaying market fears about any immediate negative impact on its token price.