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OP Crypto Airdrop Issues Lead to Infighting Among Holders Over Future Drops

  • Optimism (OP-USD) recently hosted its OP crypto airdrop, to mixed results.
  • While largely well received, the drop had gotten backlash for a major bottlenecking of transactions upon release.
  • This issue has led to some infighting between token holders, some of whom are calling for bans on users from future airdrops.
OP crypto - OP Crypto Airdrop Issues Lead to Infighting Among Holders Over Future Drops

Source: Cryptographer / Shutterstock.com

The Optimism (OP-USD) network is stirring up chatter surrounding its botched OP crypto airdrop. After the project saw its shaky first distribution of tokens, there’s a bit of infighting happening among holders. Many members of the community are taking differing stances over how Optimism should proceed with future airdrops. One proposal in particular is driving conversation, going so far as to ban some users from participating in future airdrops.

Optimism is a layer-2 network meant to ease the load off of Ethereum’s (ETH-USD) shoulders. Using Optimism, one can take their transaction data off-chain. This allows Ethereum to process more transactions per second while resisting gas fee increases.

Layer-2s have become quite popular as the total active user base of Ethereum continues to rise. But the network has been of particular interest recently because of its OP crypto. OP is a new token for the Optimism network — a governance token. By holding OP-USD, each investor has the power to vote on community proposals, allowing the users themselves to have more of a hand in guiding the growth of the Optimism ecosystem.

Developers have been crafting up the Optimism governance model for a while now, and as the release of OP approached further, investors had gotten more excited. The tokens finally released earlier this week through the first of several token airdrops. Unfortunately, though, the airdrop was rife with speed bumps. As users rushed to grab up their tokens, transaction settlement times grew and grew. Developers worked diligently for hours trying to remedy the scaling issue, but the effects had shown through regardless. Ultimately, the fiasco dragged prices down by 70% on the first day.

OP Crypto Remains in Spotlight as Users Debate Future

It seems as though the OP crypto is doing well to shake off the volatility from earlier in the week. Today, prices are up nearly 40%. But spotlight remains on the token after a bit of comedic argument between users, showing the somewhat drastic takes some are willing to take to prevent future volatility.

A proposal posted to the Optimism governance hub on Tuesday is laying out a plan targeting airdrop “flippers.” These are the users who claim tokens from an airdrop and immediately turn around and sell them for other assets. The user calls out several particular wallet addresses who flipped OP crypto for an immediate profit on Tuesday. They complain that these users do not actually provide any substantive contribution to the Optimism community and play no role in governance.

The proposal goes on to advocate for the identification of these flippers and a ban on allowing the addresses to participate in future Optimism airdrops. As of today, the proposal has over 300 responses, many of whom support the proposal.

On the flip side of this argument, another user “expanded” on the first post with their own satirical proposal, poking fun at the idea. This post advocates for issuing debt tokens to these flippers and sending debt collectors after them. It also recommends barring those who sold any crypto in the last six months from participating in airdrops. This is meant to poke fun at the “hodl” attitude of many die-hard crypto faithful.

The event and the proposals serve as an excellent example of conflicts that exist within the Web 3.0 world. Some users are there to make money, others are there to push a new frontier for technology. And as both posts exemplify, the two groups are more often adversaries than allies.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.


Article printed from InvestorPlace Media, https://investorplace.com/2022/06/op-crypto-airdrop-issues-lead-to-infighting-among-holders-over-future-drops/.

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