Optimism token plummets 75% as users dump airdropped OP tokens

Key Takeaways:

  • Optimism token prices crashed more than 76% from their listing price of $4.5
  • A proposal to ban OP dumping addresses is gaining traction.
Optimism's airdropped OP token fell drastically within hours of the first airdrop. Image from freepik
Optimism’s airdropped OP token fell drastically within hours of the first airdrop. Image from freepik

NEW DELHI (CoinChapter.com) — Optimism (OP), the native token of layer-2 Ethereum (ETH) scaling solution Optimism, fell sharply from its listing price of $4.5 days after its highly anticipated airdrop on May 31.

The OP token prices reached a low of $1.07 on Jun 2, a drop of more than 76% from $4.5. Moreover, the token reached a low of $0.79 within six hours of launch.

Optimism prices crashed following its launch on May 31. Source: CoinMarketCap.com
Optimism prices crashed following its launch on May 31. Source: CoinMarketCap.com

Optimism announced an airdrop of 5% of the total OP token supply of 215 million tokens. A total of 248,699 users were eligible for the airdrops, according to data from Dune Analytics.

Also Read: Cardano (ADA) soars over 50% in four days — a bull trap?

Meanwhile, the airdrop increased the number of transacting addresses on Optimism. As per Dune Analytics, the number of transacting addresses rose from 7,600 addresses on May 30 to 65,500 addresses on Jun 1, a jump of more than 760%.

Optimism transacting addresses per day spiked post the OP airdrop. Source: Dune Analytics
Optimism transacting addresses per day spiked post the OP airdrop. Source: Dune Analytics

As a result, the number of Optimism Bridge users rose since it is mandatory to bridge assets from Ethereum to Optimism to claim the airdrop. The immense demand for the airdrop stressed the scaling capabilities of the layer-2 solution.

Users faced delays due to increased traffic on the Optimism public RPC (Remote Procedure Call).

Proposal To Ban Optimism Dumping Addresses From Airdrops

After OP price tanked, Optimism’s governance community member OxJohn proffered a proposal in the platform’s governance forum. The user proposed to ban addresses that dumped 100% of their airdropped tokens from future airdrops.

The post invited significant interest from the community, garnering 12,800 views within one day, 627 likes, and 318 replies. The OP holder listed several addresses that promptly dumped their airdropped tokens.

Optimism addresses that received and dumped more than 32,000 OP tokens. Source: Optimism governance forum.
Some of the Optimism addresses received and dumped more than 32,000 OP. Source: Optimism governance forum

OxJohn argued that such actions harm the community and not forward the platform’s growth. Furthermore, the user proposed to make a public list of accounts that dump their airdropped tokens so that other projects and DAOs remain warned.

While most users agreed with OxJohn’s sentiments, some did not. One user by the name of Vikram said the solution was not ideal. He pointed out that if Optimism banned dumping addresses from future airdrops, users might wait to be eligible for the second airdrop before dumping.

Instead, the user suggested that instead of banning, the platform could ‘focus on those that held or bought OP. Come up with a structured proposal for holders.

Also Read: UNI gained 8% in Bitcoin’s footsteps while Uniswap crushed 24h trading volume records on Optimism and Arbitrum.

Others also pointed out that some users might have sold their OP tokens for personal reasons. Another user confessed to selling the OP tokens at $3 but rebought when prices dropped to $1. They highlighted that cryptocurrency tokens are ‘meant to do more than sit in a wallet.’

At the time of writing, OP price was $1.2, down 1.38% on the day.

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Optimism, Optimism token plummets 75% as users dump airdropped OP tokens

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