Optimism price slides 9% after $450M worth of OP tokens transferred from multisig Optimism price slides 9% after $450M worth of OP tokens transferred from multisig
The crypto community has lashed out at Optimism's team for not making an announcement about the transfer beforehand.
2 min read
Updated: Apr. 15, 2023 at 11:09 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Optimism’s (OP) token shed over 9% of its value in the last 24 hours after the team made an unannounced transfer of $450 million worth of the tokens from its multi-signature wallet.
We're seeing some confusion about recent transfers of OP out of a multisig. This is expected—today we executed a series of planned standard transfers to the Coinbase Custody wallets of various investors in OP Labs PBC.
— Optimism (✨🔴_🔴✨) (@optimismFND) August 17, 2022
The token transfer initially birthed rumors that the Ethereum-based layer-2 network had been hacked.
But the team clarified that the transfers were “planned standard transfers to the Coinbase Custody wallets of various investors in OP Labs PBC.”
OP price fell to as low as $1.29 before rebounding to its current value of $1.35 as of press time.
Community bashes Optimism
The crypto community has lashed out at the Optimism team for not announcing the token transfer.
According to rotkiapp founder Lefteris Karapetsas, the communication void resulted in the community trying to “figure out if something was wrong.”
You are transferring $450m of tokens in a public blockchain without any notice.
Guys please make an announcement well in advance.
We were all scrambling to figure out if something was wrong.
— Lefteris Karapetsas | Hiring for @rotkiapp (@LefterisJP) August 17, 2022
Why didn’t you announce it first before doing the transfers?? So weird and making your community freak out for no reason.
— Crypto Coach 🐒📈💰 (@WisdomMatic) August 17, 2022
Another community member said Optimism’s team was not “announcing the important things,” adding that he hasn’t “seen a team so disorganized and uncommunicative with its community.”
More disappointments. For a long time, I haven't seen a team so disorganized and uncommunicative with its community.
I don't understand what's wrong with you, but you're breaking the community because you're not announcing the important things. Please, be better.— ᴱᵗʰᵃⁿ (@ethanchain) August 18, 2022
Some have implied that the Optimism team shorted the token.
Now they could short the shit out of their token because they knew it was gonna instant dump 👍
— Didi (@0x_didi) August 17, 2022
They shorted and then longed after tweet. Ez $
— jjaayyzz (@NBA_GSW_30) August 17, 2022
Optimism’s TVL rises
The total value of assets locked in Optimism is currently over $1 billion, surging by over 280% in the last 30 days, according to DeFiLlama data.
MakerDAO (MKR) revealed that the amount of DAI on the network rose from $30 million to $140 million within five days.
Dai on Optimism 👀
From 30 million to 140 million in 5 days. pic.twitter.com/AQlNWvX6c9
— Maker (@MakerDAO) August 9, 2022
The layer2 network is home to 35 projects like DeFi protocol Aave (AAVE), derivatives exchange Synthetix (SNX), decentralized exchange Uniswap (UNI), and automated market maker Velodrome — these four protocols account for 87% of Optimism’s TVL.
Aave has the highest volume with $538.4 million worth of assets locked on Optimism, followed by Synthetix with $204 million.
Meanwhile, DeFi protocols like Iron Bank, Yearn Finance (YFI), and Homora also joined Optimism on August 16.
The new protocols reportedly joined the layer-2 network to improve their security and capital efficiency.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Optimism is a layer-2 scaling network for the Ethereum blockchain.
Ethereum
$3,253.18
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Aave
$161.872
Aave is an open source and non-custodial protocol enabling the creation of money markets.
Maker
$1,563.47
Maker is a decentralized autonomous organization on the Ethereum blockchain seeking to minimize the price volatility of its own stable token — the Dai — against the IMF’s international currency basket SDR.
Uniswap
$9.05465
Since its inception, the Uniswap Protocol (“Uniswap”) has served as a trustless and highly decentralized financial infrastructure.
Synthetix
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Synthetix, formerly Havven, is a cryptoasset-backed network that enables the creation of on-chain synthetic assets.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Optimism
Optimism is an Ethereum-based decentralized infrastructure platform that allows for instant transactions and scalable smart contracts.
Maker is a Decentralized Autonomous Organization that creates and insures the dai stablecoin on the Ethereum blockchain.