The next token unlock of Optimism (OP) is scheduled on Wednesday, but, reportedly, the market maker Wintermute has already dumped over 27% of its stash.
In most cases, token unlocks turn out to be a bearish event. This is because a large number of locked tokens enter the circulating supply. Hence, Wintermute has started booking profits ahead of OP’s token unlock.
Wintermute Dumped Over $10M Worth of OP Tokens
According to on-chain analyst Spot On Chain, Wintermute booked $4.67 million in profits from its OP token holdings. The decentralized finance (DeFi) market maker made a return on investment of 78.39% by selling 5.9 million tokens.
Spot On Chain says that Wintermute was one of the Series B investors in Optimism. And it accumulated 21.31 million OP tokens for $21.49 million from Binance and Coinbase at an average buying price of $1.01.
Lastly, after dumping over 27% of its holdings, the DeFi platform still owns 15.3 million OP tokens worth $23.23 million.
Upcoming Unlock
BeInCrypto reported the token unlock for Optimism is scheduled for May 31st. According to TokenUnlocks, 9% of the total supply worth $587 million will be released in circulation.
Later on, the project will follow a linear vesting schedule until May 2027.
Due to unlocks, some community members are “expecting a huge price dump.” As of writing, the OP token is trading at $1.52, down by about 6.26% in the past 24 hours. It has a market capitalization of $509.6 million and ranks 90th.
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