As the unannounced transfer of funds led to rumors of Optimism’s multi-signature wallet being hacked, Optimism released a clarification on Twitter (NYSE:TWTR) and said, “We’re seeing some confusion about recent transfers of OP out of a multi-sig. This is expected—today, we executed a series of planned standard transfers to the Coinbase (NASDAQ:COIN) Custody wallets of various investors in OP Labs PBC.”
The company vowed to make announcements before transferring funds and said, “We will announce large planned transfers ahead of time to avoid further confusion going forward.”
OP Token Takes A Dive
However, Optimism’s native token, or the OP token, took a 10% dive due to the panic and the hacking rumors. Panicked users also reprimanded Optimism on Twitter and said “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.”
As soon as Optimism clarified that the $450m fund transfer was pre-planned, the OP token rebounded from $1.25 to $1.34.
Optimism describes itself as “a Layer 2 Optimistic Rollup network designed to utilize the strong security guarantees of Ethereum while reducing its cost and latency” on its website. It also calls itself a “low-cost and lightning-fast Ethereum L2 blockchain.”
On the Flipside
Why You Should Care
Other companies such as Polygon have been making regular announcements before moving funds.
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Optimism (OP): Project Review, Recent Developments, Future Events, Community
Optimism Foundation Sends 20M Tokens to the Wrong Wallet
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Source: Cryptocurrency - investing.com
