Optimism token drops by over 70% following airdrop; Details

Sahana Kiran
Source – Unsplash

The Ethereum [ETH] network has been creating quite an uproar with its layer-2 solutions. Today, however, was all about Optimism. This layer-2 solution of Ethereum focuses primarily on scalibity. Earlier today, the highly anticipated airdrop of the OP token took the center stage. The network was scheduled to push out nearly 215 million tokens or 5 percent of the total supply to its users. Things took a different turn after the layer-2 solution was clogged creating a rather “turbulent launch”.

While the network was dealing with this, a brand new proposal urged the team to disqualify everyone that sold their OP tokens garnered from the airdrop from future airdrops. It isn’t surprising that individuals dump their tokens following an airdrop. However, OP tokens act as a governance token for the Optimism network. Selling these tokens certainly defeats the purpose of Optimism’s governance wing. The proposal read,

“Of course, it is their coins so they are free to do what they want, but at the same time it defeats the purpose of Optimism Collective and dilutes governance if negative-sum participants keep getting rewarded airdrops that they are going to dump the very next transaction after claiming it.”

In order to avoid this, the network was urged to oust those who were in it to pocket short-term gains. Zero contribution accounts or accounts that do not engage in the governance are said to be disqualified.

Due to the dumping of these airdropped tokens, OP plummeted by nearly 73 percent over the last 24-hours. The asset was trading for a low of $1.27, at press time.

Binance to delay Optimism listing

Prominent cryptocurrency exchange, Binance has been at forefront of onboarding new assets into its system. However, the crypto exchange seemed to be delaying the listing of Optimism’s OP token. Binance explained that this was mostly to the missing OP deposits from its users’ accounts.

The token was originally scheduled to land a spot on Binance today at 04:00 UTC. But it was then delayed to 06:00 UTC. Now, the exchange seemed to be dealing with issues caused by high on-chain transaction volume.