OMG Rallies as OMG Network Sold To a New Owner

  • 04 December 2020, Friday, 07:06

The OMG Network – operator of the Ethereum (ETH)-based OMG token (formerly OmiseGo) – has a new owner, news that has sent the token’s price up by almost 8% in the past 24 hours.

At pixel time (09:21 UTC), OMG, ranked 43rd by market capitalization on Coinpaprika, trades at USD 4.05 and is up by almost 8% in a day and 16% in a week. The price rallied by 44% in a month and 462% in a year.

In an announcement, GBV, which describes itself as a full-service investment company working with Genesis Block, claimed it had “acquired” the OMG Network, although it did not reveal how much it had paid to secure the deal.

The OMG Network was launched by the fintech app payment firm SYNQA as a subsidiary in 2017. It has since been working on Layer-2 scaling infrastructure for the Ethereum blockchain network. Layer 1 is the base protocol (the Ethereum blockchain), while Layer 2 is any protocol built on top of Ethereum.

The move is GBV’s first in the crypto market, a fact that appears to have worried some online commenters.

On Twitter in a thread responding to a post from the OMG Network, one investor claimed that they were “really worried to see that my investment is sold to a company I really don't know about.”

@FellayLionel @omgnetworkhq We have an AMA on monday on @boxmining. Please join us and get to know us better!

— Genesis Block HK (@genesisblockhk)

Another, however, claimed that Genesis Block was the “quiet giant of Asia” and had partnership deals in place with the likes of Binance and the FTX exchange.

And another still expressed no shortage of cynicism about the deal, claiming that SYNQA was “offloading OMG so it doesn't have to deal with tokenholders,” and adding that “as a holder, this doesn’t look great.”

Genesis Block describes itself as a “premier [over-the-counter] trading company for bitcoin and cryptocurrencies,” and has called GBV its “sister company” in a tweet. The former was established in 2017 and is headquartered in Hong Kong. Learn more: DeFi Superpowers and SushiSwap To Merge