The Optimism (OP) token has lost more than 9% of its value in the last 24 hours after the team transferred $450 million worth of tokens from a multisig wallet without notice.
There is some confusion about OP’s recent transfer from multisig. This is expected. Today, he executed a series of planned standard transfers to his Coinbase Custody wallets for various investors in OP Labs PBC.
— Optimism (✨🔴_🔴✨) (@optimismFND) August 17, 2022
The token transfer initially spawned rumors that the Ethereum-based Layer 2 network had been hacked.
However, the team clarified that the transfer was “planned to be a standard transfer to Coinbase Custody wallets of various investors in OP Labs PBC.”
The OP price fell to $1.29 before recovering to its current price of $1.35 at the time of writing.
Community beats down optimism
The cryptocurrency community lashed out at the Optimism team for not announcing the token transfer.
According to rotkiapp founder Lefteris Karapetsas, the communication gap left the community trying to “determine if something was wrong.”
You are transferring $450 million worth of tokens on a public blockchain without any notice.
Everyone, please announce in advance.
We all rushed to find out if something was wrong.
— Lefteris Carapetzas | @rotkiapp (@LefterisJP) Now recruiting August 17, 2022
Why didn’t you tell me before you moved? ? It’s so weird and it’s surprising the community for no reason.
— Crypto Coach 🐒📈💰 (@WisdomMatic) August 17, 2022
Another community member said Optimism’s team “didn’t put out anything important,” adding, “I’ve never seen a team so unorganized and so uncommunicative with the community.” Added.
More disappointed. I haven’t seen a team this unorganized and uncommunicative with the community in a long time.
I don’t know what’s wrong with you, but you’re breaking the community by not announcing something important.
— ᴱᵗʰᵃⁿ (@ethanchain) August 18, 2022
Some have suggested that the Optimism team has sold the token short.
Now they knew the token would be thrown away soon so they could short the shit out of the token 👍
— Didi (@0x_didi) August 17, 2022
They mumbled, then shorted and then longed. Eze $
— jjaayyzz (@NBA_GSW_30) August 17, 2022
Optimism TVL rises
According to DeFiLlama, the total amount of assets locked in Optimism is now over $1 billion, jumping more than 280% in the last 30 days. data.
MakerDAO (MKR) revealed that the amount of DAI on its network increased from $30 million to $140 million within five days.
Optimism die 👀
From 30 million to 140 million in 5 days. pic.twitter.com/AQlNWvX6c9
— Maker (@MakerDAO) August 9, 2022
The Layer 2 network has 35 projects such as DeFi protocol Aave (AAVE), derivatives exchange Synthetix (SNX), decentralized exchange Uniswap (UNI), and automated market maker Velodrome, all of which are optimism accounts for 87% of TVL in
Aave has the highest volume with $538.4 million worth of assets locked in Optimism, followed by Synthetix with $204 million.
Meanwhile, DeFi protocols such as Iron Bank, Yearn Finance (YFI), and Homora also joined Optimism on August 16th.
New protocols have reportedly joined Layer 2 networks to improve security and capital efficiency.