Omni Launch Triggers 30% Price Plunge as Major Exchanges Open Trading Access

Omni Launch Triggers 30% Price Plunge as Major Exchanges Open Trading Access
  • A new Layer 2 solution, Omni Network, plans to introduce interoperability among Ethereum rollups.
  • The project recently launched on the world’s two biggest crypto exchanges – Binance and Coinbase.
  • The token launch didn’t go according to plan, with poor market conditions and confusion among investors leading to a 35% drop in less than 12 hours.

Ethereum rollups have been a major technological advancement for the decentralised finance world. These L2 solutions allow for cheaper, faster and more efficient use of the Ethereum ecosystem, battling the congestion that has long plagued the network. A new Ether-based altcoin, Omni Network, intends to simplify these L2 solutions even further by combining rollups into a single network. However, despite performing a valuable role for the future of DeFi, the market hasn’t responded in kind to the launch of OMNI tokens.

Related: Bloomberg Reports Hong Kong Spot Bitcoin ETFs Likely to Exclude Mainland Chinese Investors

OMNI to Bring Interoperability to Ethereum Network Despite Rough Start

Listings on major exchanges are often a catalyst for new coins to take things to the next level. It gives projects exposure to thousands of investors who would otherwise be unable to (or unwilling) to purchase the coin via more complicated methods (such as using a decentralised exchange). Coinbase and Binance are two of the biggest crypto exchanges going around – so why was OMNI’s listing on these platforms met with a near-instant downtrend?

Omni Network (OMNI), source: CoinMarketCap

OMNI is trading nearly 40% lower in less than 12 hours after it was launched on Coinbase and Binance yesterday. One theory for the coin’s poor performance is rather confusing – several other crypto projects go by the same name, and some of them are even listed on Binance. Funnily enough, upon hearing news of the new Omni token launch, some ill-fated traders jumped onto these exchanges and pumped the old OMNI’s price by over %1,000+. Unfortunately for them, the old Omni Layer is more or less redundant after years of ups and downs.

While token listings are often associated with sharp price rises, the same can be true but in reverse. As it gives widespread access to a coin for the first time, investors may believe its launch price is overvalued and settle on a much lower price before liquidity really kicks in.

And given the overall market conditions, with even the most stable assets like BTC and Ethereum down 10+%, it’s hardly a surprise that a new coin is bearing the full brunt of the market’s volatility.

Despite the tumultuous opening, Omni Network may add a much-needed unanimity to the Ethereum L2 world, something its developers are keen to continue improving.

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Omni is an Ethereum-native interoperability protocol that establishes low latency communications between all Ethereum rollups. Omni offers a secure, performant and globally compatible architecture that presents Ethereum as a single, unified operating system to both users and developers.

Omni Developer

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