Popular ERC20 token OmiseGO (OMG) has had a spectacular month for price growth. Over the last 30 days, this coin has more than doubled its value. It jumped $10.58 to where it sits now: $22.46. That’s a 112% boost:
Haven’t heard that much about this cryptocurrency? It just launched last summer, and since then it has skyrocketed. It’s an Ethereum-based token that is developing a pretty exciting new payments network.
So, What Kind of ERC20 token is OmiseGO (OMG)?
OMG is an ERC20 token, which means it launched on top of the Ethereum protocol. A ton of other cryptocurrencies on the market have already launched as ERC20 tokens. TRON (TRX) and EOS (EOS) are two popular examples. It means that they leverage the blockchain technology the powers Ethereum to launch an ICO – without having to come up with a protocol from scratch.
OmiseGO is actually a decentralized platform that was founded by a Thailand-based payment services company called Omise. The company, which has a large presence in several Asian markets, doesn’t own the OmiseGO platform. It is an extension platform, but it is owned by the community.
It’s essentially a digital wallet system that enables transactions across different types of assets. It is a fast way to complete transactions in an environment where current payment systems are highly disjointed. We’re talking a one-stop shop wallet for fiat currency, cryptocurrency, and potentially other assets too – like airline miles.
Sure, this isn’t the only ERC20 token out there that’s dealing with an e-wallet. But OMG was publicly announced as the personal favorite token of Vitalik Buterin – the founder of Ethereum. He tweeted out his affinity for OmiseGo in mid-December:
Right now my favorite token model is OMG-style staking tokens. Reasons:
* Not a medium-of-exchange token
* Clear valuation model (expected discounted future tx fees minus node operation cost)
* Requires running node to get returns, not passive income (so more legally defensible)
— Vitalik Buterin (@VitalikButerin) December 12, 2017
That tweet doubled the coin’s price in just a few days. This coin was under $1.00 in July – shortly after it was launched on the Ethereum network. That is a pretty stunning amount of growth. The media attention from its foundational blockchain’s creator doesn’t hurt either.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.