- Acclaimed investor says he fell for a token pump that was triggered by an airdrop.
- Optimism’s on-chain analytics shows a massive drop in the number of daily transactions.
- OP is one of the best performing tokens in the crypto market in 2023.
Acclaimed crypto investor @PaoloRebuffo has expressed disappointment over the on-chain performance of the Layer 2 project Optimism. His criticism focuses on the project’s on-chain performance, rather than technical issues.
In a recent tweet, @PaoloRebuffo appeared to be blaming himself for poor judgment over the investment in perspective. He described his action as a mistake, having fallen for a pump triggered by the community’s hunt for an airdrop, not organic growth.
To buttress his point, @PaoloRebuffo shared a screenshot of an on-chain analysis of the daily transactions of Optimism, in comparison with a competitor, Arbitrum. He also posted the aggregation of gas spent by the Layer 2 project on Ethereum for the period under consideration.
His investigation showed that the spike in Optimism in 2022 can be linked directly to the airdrop exercise. Since it ended, all the key indices have dropped, suggesting that airdrop hunters may have dumped the tokens for profit.
Cryptocurrency projects use airdrops as marketing tools to create awareness and to get their tokens across to actual users. Participants in airdrops are required to complete various tasks to promote the projects, getting tokens in return as rewards.
Most projects prefer airdrop hunters to keep and use acquired tokens on their platforms. That is not always the case, as results have shown that many participants would exchange the received tokens for more established cryptos or sell them off for fiat. Some hunters use bots to game the system, accumulating more tokens that should be allocated to single accounts and dumping them on the markets.
According to PaoloRebuffo, Optimism has dropped in the number of daily transactions, lower than its main competitor, Arbitrum. His tweet expressed regret, saying that he fell for the pump, having mistaken it for organic growth.
In contrast to @PaoloRebuffo’s expression, Optimism (OP) has been one of the most performing cryptocurrencies in 2023. OP began 2023 with an opening price of $0.917. It has since rallied and was trading at $2.368 at the time of writing.
Optimism is a Layer 2 scaling solution on Ethereum. It is designed to support all DApps built on the Ethereum blockchain.
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