Just recently, Optimism launched its new governance token. The development team had dubbed the new token “OP”. When OP was launched on May 31, it was launched with a strong trading price of $4.479. Unfortunately, the price was an overestimation and it ended up plunging right from the beginning.
According to data from Coingecko, the moment OP was launched, it started facing a demise in its trading price. The trend line shows that right after launching, the trend line slightly moved up before diving down.
The data shows that the price of OP has continued falling from there. In the past 24-hours alone, OP’s trading price has plunged by 40%. In the past 24-hours, the peak price OP managed to hit was $2.10.
Concerns among the Investors
The investors who are after long-term gains have shown great dissatisfaction in regards to particular investors. They have voiced their concerns over the investors who accumulate tokens at the time of airdrops and dump them the moment trade begins.
As per the majority of the investors, investors with such intentions must be barred from participating in any future airdrops. If that happens, then these kinds of investors will not have the opportunity of causing such a problem for the rest of the investors.
250,000 Users Participated in the Airdrop
The on-chain data analytical firms have shared the information they have managed to gather surrounding the OP airdrop. The firms revealed that a total of 250,000 users were eligible for the airdrop.
The data also confirms that the demand for the OP governance token was too high. Due to the strong interests of the investors, the demand for the token was overwhelming on the Ethereum Layer-2 scaling solution.
As a result, 5% of the total supply for the OP governance tokens was distributed among the said number of investors. Many community members of Optimism governance have highlighted their concerns over such users.
Many community members have highlighted that a total of 32,000 OP tokens were sold by the addresses who had collected them at the time of airdrop. The members have revealed that such actions by the sellers are very counter-productive.
Entities Adding Value to OP
According to the market trends, the investors who support the price of newly launched cryptocurrencies are short-term investors, traders, and price speculators.
However, it is due to people like early sellers who tend to negatively impact the trading prices of cryptocurrencies. The community members for the OP governance token have shared the same concern and want this problem to be addressed promptly.
At the time of writing, the trading price of OP is worth $1.30 and it is still moving in the negative zone. If the OP community is able to get rid of such investors then OP’s price may grow stronger.