One of the circumstances that contributed to a precipitous decline in the price of OP was the fact that some wallets received their tokens before the rest of the community did. This gave the owners of those wallets the opportunity to quickly sell their assets at a time when there was a scarcity of supply, which was one of the factors that contributed to the price decline.
The network appears to have become congested as a result of these early transactions, and the team responsible for its development was not prepared to deal with quantities of that magnitude.
In conclusion, those people who arrived late to the party watched the value of their tokens plummet swiftly, so they hurried to sell them off, only to discover that the network was already quite crowded. The combination of these two occurrences amplified the selling frenzy and drove the price to new lows that were witnessed on May 31.
It took the Optimism team around to five hours to get the network back to a stable state, according to their estimates. They also mentioned that an investigation into the incident will be conducted, and that they would afterwards write a report entitled "on the lessons learnt."
The residents of the town felt a deep sense of dissatisfaction with the way things were going. One user in particular pushed things to a whole new level by initiating the introduction of a governance proposal that attempts to exclude from participation in upcoming distributions any wallets that were responsible for the rapid sale of Optimism cryptocurrency.
The user, who went by the moniker 0xJohn, referenced four distinct wallets that swiftly unloaded their OP holdings for profits of almost $40,000 each.
There is absolutely no way that the part that these accounts are playing in the governance of Optimism can be considered beneficial. The user claimed that the organization was more concerned with increasing their earnings than they were with contributing to government.
He followed by stating, "There is absolutely nothing wrong with that; according to the airdrop criteria, the coins are theirs, and they are free to do anything they choose with them." [Citation needed] On the other hand, from the perspective of the governance of Optimism, such accounts are detrimental to our organization's publicly stated goals and should be avoided at all costs.
The proposal has received support from Cobie (@Cobie), a well-known member of the cryptocurrency community. However, his support was not without controversy, as the administrators of the Optimism government forum initially removed his post before republishing it after Cobie brought the incident to the attention of the general public through his official Twitter account. Cobie's tweets brought the controversy to light.