In this post I share my thoughts on OmiseGO (OMG), especially focusing on its current situation and price prediction. The fundamentals are covered only briefly.
OmiseGO, you were meant for greater things. You were supposed to bring electronic banking to those without it. With only their measly smartphones, the poor and the destitute were meant to be included in the global financial world. To lift them out of their misery and usher in a brighter tomorrow!
Also, instant decentralized exchange of fiat to crypto currencies. A wallet with which you can exchange from one form of currency to another, seamlessly. All of this brought to you by an established payments company, so surely they know what they’re doing. And on top of everything, if you have OMG tokens, you get a share of the transaction fees. Buy more, earn more.
With that kind of a spiel, no wonder the coin made its way from $0.5 to $13.5 in just under two months. 2600% gains in two months.
We had some good times, didn’t we?
With unmatched hype behind it, OMG seemed to be delivering on its promises. Following their twitter must have been ecstatic for their followers, the team taking scalp after scalp as their corporate partners: McDonalds, Google. Vitalik Buterin promising to do a monthly webcam show for them, team in talks with Michael Jackson’s ghost for a new theme song, etc.
And therein lies the problem. It was all just so much hype, and nothing real. Vaporware, loads of promises and nothing delivered. At its finest, market cap of the tokens was over $1,000,000,000.00 with nothing to show for it, save for tweets and words on paper. That is absolutely insane. And you wonder why people call cryptos a bubble?
To the team’s credit, they addressed this overblown hype in a tweet on 19 October 2017, stating that the “the signal-to-noise ratio has gotten so extreme” that without an official statement, no word on partnerships should be believed. But in all fairness, what would you make of these official tweets?
I can’t even count the number of times that Boy Wonder has been mentioned by OMG in Twitter. He is a smart guy and nerds love him, but at some point it just gets creepy.
How would that be construed by a foaming, BTC-thirsty market? Hmm. I wonder how? And what was that “deeper discussion” about anyway? How to integrate Google docs better to Omise? It sure as shit wasn’t anything material related to the actual project. They would’ve made a full length movie of it.
TA + prediction
Sorry about the shitty TA, www.tradingview.com won’t let me publish my analysis there until I get my account verified. Gaah. It actually has been that way since my Monero analysis, but I haven’t gotten around to fixing it.
Tradingview is in my opinion the best place to practice your TA and look at how others do it. Dian Kemala has really good analysis on her page and she sometimes explains the technicalities. She analyses a wide range of charts, from stocks and currencies to crypto.
OMG probably won’t fall much lower, but those waiting for a moonshot, you’re just going to have to keep waiting. It has tested resistance at 0.00154 several times now, each time unsuccessfully with the underlying trend going downwards. Volume is ok, but not bullish. Based on pure TA, it cannot spike up.
However, OMG should release their roadmap within a few days, I might post quick thoughts on it then. The thing is, if the wallet is too far in the future, the price will tank severely. “Hold this coin for 5 years and you might make some gains.” In the meantime, BTC rises to $300 000.
What does OMG need to dig itself from this hole that it is about to fall into? Quite simply, actually get something done.
- The wallet
- The infrastructure
- Plasma implementation
- Shut down the largest Vitalik fanclub on earth for now. We get it already.
- Also, don’t post any more marketing tweets if you can’t back it up.
And even though throughout this article I did lambaste the teams as overt marketers, I believe that they have acted with good intentions in their heart. They also hard capped the ICO, have airdropped tokens on unsuspecting ETH holders etc. They are not a scammy or unscrupulous team and I wish them all the best. I just don’t believe the hype to warranted at this point.
Some big news of partnerships could change everything, of course. It is at a point where it has to decide if it’s gonna go up or down.
EDIT: Like 5 minutes after publishing this article, this was posted: https://medium.com/@jacobotoll/hubii-network-to-use-omisego-for-payments-81d5d7313b3e
The original analysis still stands. We shall see if that news brings enough steam for OMG to break the downtrend. This and well timed roadmap could break it.