The Optimism Foundation, which runs the Ethereum Layer 2 scaling platform Optimism (OP), has announced the sale of roughly 19.5 million OP tokens to private buyers.

Based on the altcoin’s current market price of $5, this sale represents over $98 million.

According to the foundation, the tokens used to facilitate the private sale event originate from the unallocated portion of the OP Token Treasury, which constitutes 30% of the initial token supply and forms part of the foundation’s working budget. 

Further, the tokens sold under this arrangement will be subject to a two-year lockup period, restricting their immediate resale. However, during this period, the buyers can delegate their voting rights to other participants within the project’s governance community. 

Despite Price Hike, Volatility Remains at Bay

At press time, OP was trading at $5, witnessing a 37% price growth in the last month, according to data from CoinMarketCap. As reported earlier, the rise in the token’s price has put 100% of its holders in profit. 

Interestingly, despite the double-digit price rally and the general market volatility, a look at OP’s movements on a weekly chart showed that it was not at risk of price swings. 

At press time, its vital volatility markers trended downwards, suggesting a decline in the possibility of any significant correction in OP’s price.

Optimism 1-week price chart | Source: TradingView

For example, the token’s Chaikin Volatility, which measures the difference between an asset’s high and low prices over a specified period, was 117.93, having declined by 34% in the last month. 

Its Bollinger Bandwidth (BBW), which also tracks market volatility, has declined within the same period. As of this writing, OP’s BBW was 1.32.

Regarding the demand for Optimism, it continues to outpace sell-offs. OP’s key momentum indicators were spotted at overbought territory at press time. Its Relative Strength Index (RSI) was 75.64, while its Money Flow Index (MFI) was 82.13.

These indicators showed that OP investors favored accumulation over distribution at these values. 

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.