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A16z makes a $90 million private purchase of Optimism’s OP token
Blockchains including Celo recently chose Optimism’s OP Tech Stack to implement Layer 2 on Ethereum.
Numerous major projects, such as Celo, have recently chosen Optimism to build their Layer 2s.
(Photography)
Published April 30, 2024 at 5:09 pm EST.
Popular venture capital firm a16z has snapped up around $90 million of Optimism’s native OP token, marking the latest institutional bet on Ethereum Layer 2, according to two sources familiar with the matter.
The investment, which is said to be executed as part of a two-year vesting period, follows a flurry of activity in the Optimism ecosystem, including growth in the use of Optimism’s OP Stack. Token vesting periods entered into by sizable investors typically result in purchases at a discount to the token’s trading price.
The product allows Layer 2 blockchain developers to leverage its open source technology to deploy their own core networks. In a recent notable win for Optimism, the developers of the Celo blockchain choice OP Stack to launch the long-awaited Layer 2 of the blockchain.
“It’s interesting,” a source said of a16z’s latest cryptocurrency investment. “The optimism worked quite well. They’re still doing airdrops.”
A spokesperson for a16z did not respond to multiple requests for comment, and a spokesperson for Optimism did not comment on a16z’s involvement, specifically.
“We are thrilled with the energy and momentum that Optimism is gaining and excited about what is to come,” the Optimism spokesperson said.
To know more: A16z, Binance Labs invests in EigenLayer ecosystem
OP was changing hands at about $2.30 as of mid-afternoon in New York, down 5.7% over the past 24 hours, and was down 36.8% for the month, for CoinMarketCap.
A16z and Cryptocurrencies
The substantial stake marks the latest cryptocurrency investment for a16z, which counts cryptocurrency exchange Coinbase among its portfolio companies. Launched in 2023, Coinbase’s foundation serves as the exchange’s Ethereum Layer 2 and is also looking to become an ecosystem solution for the protocol’s developers. Base and Optimism could be considered competitors, and both have landed major crypto projects as users in their tech stacks.
To know more: What Base’s Rapidly Growing Revenue and Usage Mean for Coinbase Stock
On March 7, the Optimism Foundation disclosed the sale of approximately 19.5 million OP tokens worth nearly $90 million to an unidentified buyer.
The tokens, the foundations She said at the time, it came from a pool of 30% of OP’s original treasury earmarked for the foundation’s original working budget. Points of sale including CoinDesk reported on development, underlining that the buyer could delegate their tokens to third parties, who could then participate in the governance of Optimism.
“As this was a private sale, the terms and buyer cannot be disclosed,” the foundation said at the time.