Optimism Token Lost Over 9% – $450M Transferred From Multisig

Optimism token lost over 9% of its value in the past 24 hours after an unscheduled transfer of $450 million in tokens from its multi-signature wallet. Now the community is perplexed and outraged, with members expecting even worse things to unfold, and blaming (maybe even rightfully so) the team behind the token for its lack of professionalism and poor communication with the community.

We’re seeing some confusion about recent transfers of OP out of a multisig. This is expected—today we executed a series of planned standard transfers to the Coinbase Custody wallets of various investors in OP Labs PBC.

— Optimism (✨🔴_🔴✨) (@optimismFND) August 17, 2022

The token transfer sparked speculation that the Ethereum-based layer-2 network had been compromised.

However, the organization stated that the transactions were “scheduled routine payments to various investors in OP Labs PBC’s Coinbase Custody accounts.”

As of press time, the OP price had fallen as low as $1.29 before recovering to its current value of $1.35 with some strong indications of a downward trend behind the corner.

Optimism Token Lost Over 9% – Attacked By Community

The crypto community has chastised the Optimism team for failing to announce the token transfer.

According to rotkiapp creator Lefteris Karapetsas, the lack of communication caused the community to attempt to find out what was wrong.

You are transferring $450m of tokens in a public blockchain without any notice.

Guys please make an announcement well in advance.

We were all scrambling to figure out if something was wrong.

— Lefteris Karapetsas | Hiring for @rotkiapp (@LefterisJP) August 17, 2022

Another member of the community stated that Optimism’s team was not announcing the crucial stuff and that he had never seen a team so chaotic and uncommunicative with its community.

More disappointments. For a long time, I haven’t seen a team so disorganized and uncommunicative with its community.
I don’t understand what’s wrong with you, but you’re breaking the community because you’re not announcing the important things. Please, be better.

— ᴱᵗʰᵃⁿ (@ethanchain) August 18, 2022

Some have speculated that the Optimism team sold the token short.

The TVL Of Optimism Grows

According to DeFiLlama statistics, the total amount of assets locked in Optimism is presently above $1 billion, having increased by more than 280% in the previous 30 days.

MakerDAO (MKR) stated that DAI on the network increased from $30 million to $140 million in five days.

35 projects, including the DeFi protocol Aave (AAVE), the decentralized exchange Uniswap (UNI), the automated market maker Velodrome, and the derivatives exchange Synthetix, are located on the layer2 network. Together, these four protocols make up 87% of Optimism’s TVL.

Aave has the most assets locked on Optimism, with $538.4 million, followed by Synthetix, which has $204 million.

Meanwhile, on August 16, DeFi protocols such as Iron Bank, Yearn Finance (YFI), and Homora joined Optimism.

The new protocols are said to have joined the layer-2 network in order to increase security and capital efficiency.

Read the latest Altcoin news.