Omni Network's ERC-20 Token OMNI Witnesses 55% Drop Post-airdrop; Fraudulent OMNI Token Exit Scam Unfolds
Summary:
The Omni Network's ERC-20 token OMNI saw a drop of over 55% in its market value hours after its airdrop, reducing its market capitalization by more than half. On the other hand, a fraudulent token with the same name was saw its price reduced by 100%. As part of their airdrop, the Omni Network distributed 3 million OMNI tokens among their community contributors. However, this led to a drastic decrease in the token's value from $53.80 to around $24, thus decreasing its market cap to $267.5 million. Concurrently, the developers of a fraudulent OMNI token executed a $398,000 exit scam, leading to the token's value dropping by 100%.
The ERC-20 token, OMNI, belonging to the Omni Network plummeted by over 55%, causing over half its market capitalization to be sliced off merely 18 hours following its airdrop. Coincidentally, a fraudulent token carrying an identical name was just "rug pulled," reducing its price by a complete 100%. The layer-1 testnet blockchain which seeks to unite Ethereum rollups assigned 3 million OMNI, constituting 3% of its 100 million token supply, to the community contributors on April 17, beginning at 11 am UTC. The market cap of OMNI was $560 million, but plummeted nearly 30% within 30 minutes, moving from $53.80 to less than $39 and has been steadily declining to approximately $24, marking over a 55% drop. The existing market cap stands at $267.5 million, rendering a fully diluted evaluation of nearly $2.57 billion as per CoinGecko. The price of OMNI has been continuously declining post airdrop approximately 16 hours ago. Half of the 1.5 million OMNI of the recent airdrop, worth around $36.2 million, were granted to early testnet users, community participants, and builders, decided via a snapshot carried out on April 3. The balance tokens were irregularly divided between EigenLayer restakers and a few nonfungible token (NFT) projects including Pudgy Penguins. April 15 saw Omni Network detail out that 9.27 million OMNI, accounting to 9.27% of the overall supply, was held back as public launch tokens planned to be used for "launch pools and liquidity." The biggest portion of OMNI i.e. 29.5 million denoting 29.5% of its supply will be allocated for "ecosystem development," which will be distributed initially at the discretion of the endorsing firm of the blockchain, Omni Foundation. Almost a quarter of total OMNI or 23.3 million is intended for investors and advisers. Today, advisers got 625,000 OMNI worth $15 million and another 875,000 OMNI will be received after one year, following which, 437,500 OMNI will be provided every six months for two years. The tokens allocated to investors were planned for a three-year unlock plan, where nearly 6.7 million tokens or almost $161 million today, will be provided after 12 months, with the balance unlocking every six months until their share is completely disbursed. Meanwhile, a bogus OMNI token's developers leveraging the identical ticker implemented a $398,000 exit scam. PeckShield, the blockchain security company reported on April 18 that a fraudulent token slumped a full 100% following the deploying smart contract dumped in excess of 1.7 quadrillion tokens for 132 Wrapped Ether (WETH).
Published At
4/18/2024 9:08:44 AM
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