- Optimism Foundation plans to sell 19.5 million OP tokens.
- Operating profit remains at the $4.6 price range.
The Optimism (OP) Foundation recently revealed multi-million dollar OP sales. Nonetheless, the announcement was met with opposition from some holders. Did this affect OP’s price movements?
Optimism discloses private operating profit
According to Optimism’s recent announcement, the foundation plans to sell 19.5 million OP tokens, worth approximately $89.7 million at the time of this writing.
The announcement explained that these tokens will have a two-year lock-up period. However, holders have the option to delegate their tokens to an independent third party for governance voting.
According to the project, these tokens will come from the unallocated portion of the OP token treasury and form part of the foundation’s initial working budget, comprising 30% of the initial OP token supply.
This is the second time the foundation has disclosed a private token sale in recent months. In September 2023, it pre-sold 116 million OP tokens, which would be valued at over $160 million at the time.
Bullish holders express dissatisfaction with sales
Following the announcement of a private sale of the Optimism Foundation, it received negative reactions, especially from the founders of The Daily Gwei. Anthony Sassano.
Sassano expressed frustration, citing the foundation’s lack of transparency. This sentiment arose due to the foundation’s inability to disclose terms and buyer details.
Other user Sharing a similar opinion, he also sarcastically said that if it were a private sale, it could not be considered a dumping ground, implying that the foundation was cleverly disposing of OP held by the foundation.
How did OP react?
Analysis of optimism on daily time frames showed no negative reactions following the foundation’s announcement. According to the chart, operating profit increased 2.57% to approximately $4.6 at the close of trading on March 7.
Source: Trading View
Realistic or not, the OP market cap in BTC terms is:
However, at the time of writing, it was trading at $4.6, down about 1%. It is important to note that this decline is not related to the recent foundation announcement.
Moreover, operating profit continued its strong bullish trend, as evidenced by Relative Strength Index (RSI) data. The RSI line was in the overbought zone at just above 70 at press time.