Cryptocurrency market maker Wintermute dumped $5 million worth of Optimism tokens on Binance. This sale took place ahead of the altcoin project’s big un-lock event. Wintermute Trading has transferred 2.65 million Optimism (OP) to the crypto exchange.
Wintermute dumps OP tokens on Binance
Crypto market maker Wintermute Trading dumped millions of dollars’ worth of Optimism tokens into Binance on Monday. This move came just before the massive OP token was unlocked on June 1. Un-lock events increase the amount of tokens on the market. Therefore, it usually has a negative impact on the respective altcoin price. It is possible that the famous company wanted to issue tokens before this event.
According to experts, Wintermute conducted the transaction associated with Optimism to ensure the token supply and maintain liquidity in the market. Meanwhile, the OP price is trading marginally lower amid the famous company’s sales. It is worth noting that Wintermute started this process with the sale of 1000 Optimism (OP) tokens on Sunday. In addition, the market maker has sold 2.65 million OP tokens worth about $5 million in the last 24 hours.
The famous company disposed of 2 million OP tokens in a single transaction on Binance. Thus, he revealed his intention to sell OP tokens ahead of the un-lock event on June 1. According to Token.unlocks, which tracks un-lock events, 9% of the total OP token supply is unlocked on June 1. This represents 386 million OP tokens to be unlocked. The amount of token that will be un-locked has a value of over $ 626 million. In the meantime, let us state that 4.75% of the 9% supply belongs to the core participants and 4.25% belongs to the investors. As we reported on Kriptokoin.com, Wintermute received over 19 million OP tokens from Binance and Coinbase between November and January 2023. After the sale, Wintermute still has 15.38 million OP tokens worth $25 million in its wallet.
How will the developments affect the altcoin price?
Before these developments, it should be noted that the altcoin price has mostly been trading horizontally since last week. The OP token is trading at $1.56, down 3.26% on a daily basis at press time. Meanwhile, the 24-hour low and high price for the altcoin are $1.55 and $1.67, respectively.
OP daily price chart / Source: CoinMarketCapHowever, OP trading volume has seen a slight increase in the last 24 hours. According to experts, this indicates a slight interest among traders. Generally, an increase in token supply in the market is followed by a decrease in price. That is, the un-lock activity is considered a bearish price indicator. So, the OP price is likely to drop this week. In addition, there has been no significant upside momentum in the OP since the beginning of this month.
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