Ethereum-based cryptocurrency named Omicron Coin (OMIC) has gained popularity, rising more than 1,000 per cent at the end of November 2021. But it also took a tumble within a few days of reaching the peak.
OMIC, which was launched at the beginning of November 2021, has been on a roller-coaster ride recently. It created a buzz in the world of cryptos after the World Health Organization (WHO) designated the variant B.1.1.529 ‘Omicron’.
What is Omicron Coin?
Omicron is a decentralised reserve currency protocol available on the Ethereum network. It was listed on Coingecko in early November as a fork of the Olympus DAO (decentralised autonomous organisation) DeFi protocol, according to Coingecko.
The coin gained popularity after WHO gave the same name to a new variant of Covid. Omicron is the 15th letter in the Greek alphabet.
According to Singapore-based crypto exchange Crypto.com, OMIC climbed as much as 1,110 per cent from $64.84 on November 27 to reach $711.09 on November 29. But, on November 29 itself, its price fell to $466.22, and the coin was trading even lower at $210.28 on the last day (November 30) of the month. During that period, OMIC worth about $781,000 exchanged hands. The buzz was short-lived and the coin lost almost one-third of its value in the span of just one day.
“It was mere coincidence that the WHO chose to name the new strain of coronavirus ‘Omicron’ and the token bearing the same nomenclature rose to fame. Such hikes in price are unsustainable and it would be premature to comment on the price movement of this token because there isn’t credible data available on market capitalisation,” says Sharat Chandra, a blockchain and emerging tech evangelist.
How Long Will It Last?
Many nondescript tokens gain popularity for various reasons. But the spotlight is on them only for a short while and the bubble bursts sooner than later.
In the past, Squid Token, a token inspired by the blockbuster South Korean Netflix series Squid Game plunged 99 per cent to less than half a cent on November 1 ($2,861 to $0.0007), wiping away $3 million worth of investor wealth in just 24 hours.
Omicron, too, is unlikely to retain its Covid variant-related popularity for long. “It’s highly unlikely that the prices will mimic the movement of the virus,” says Chandra.
Omicron coin was trading at $366.50 at 11:40 am on December 2; up 14.22 per cent in the last 24 hours, according to coinmarketcap.com.
Most crypto experts advise not to invest in such coins, especially if you are a retail investor. “I would strongly advise against investing in these nondescript tokens. Investors should do their due diligence on new token launches and observe price movements dispassionately to avoid losses,” says Chandra.
In any case, the cryptocurrency domain is volatile, and investors should understand it properly before entering.