Omni Network Token Crashes 56% after Airdrop Distribution

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On April 17, 2024, the value of Omni Network (OMNI) tokens plummeted by over 56% following its airdrop distribution and exchange listing. Consequently, anxious investors quickly sold off their tokens, causing a significant price drop. According to CoinGecko’s figures, the token’s worth plunged from $53 to $23 within just one day.

OMNI Underperforms after Airdrop Distribution

Around 11 am UTC on Wednesday, Omni gave out around 3% of its 100 million token total to early supporters who had previously engaged with their blockchain prior to the launch. This distribution included members of the platform’s community, restakers in EigenLayer, and individuals on Beacon.

Within an hour of the token becoming available for trade on exchanges like Binance, ByBit, Bitget, and KuCoin, its value dropped approximately 30% from $53 down to roughly $39.

The token’s market value decreased significantly after the airdrop, dropping from $560 million to $245 million. Currently, it has a trading volume of approximately $737 million within the last 24 hours.

The drop in value coincides with the larger market slump, causing Bitcoin (BTC) and Ethereum (ETH), the top cryptocurrencies, to dip beneath $60,000 and $3,000 respectively, before rebounding slightly.

Fake OMNI Token Rug Pulls With Investor’s Funds

Fraudsters crafted a counterfeit OMNI token with an identical name to capitalize on the buzz surrounding the genuine OMNI token’s launch, designed to link Ethereum rollups.

Instead of “the project ‘rug pulled,’ causing the token’s value to plummet by 100%,” you could paraphrase it as “The value of the token dropped dramatically by 100%, according to PeckShield, a blockchain security company that uncovered and reported the scam.”

In a regrettable pattern, the latest swindle involving fake Omni tokens is merely one of numerous such schemes that have been prevalent in the crypto sector. Last year, Magnate Finance orchestrated a rug pull, resulting in a loss of $6.5 million for its users. The project’s creators drained the liquidity from the platform, causing the token price to crash to zero. Magnate Finance debuted on Coinbase’s layer-2 network, Base, and subsequently vanished from the market after amassing huge investments from unsuspecting users.

In March 2024, the OrdiZK team behind the crypto project aimed at linking Bitcoin, Ethereum, and Solana blockchains unexpectedly executed a rug pull. This resulted in the developers abruptly draining the liquidity, causing the token’s value to crash by an alarming 99%. As reported by blockchain firm CertiK, the swindlers successfully walked away with approximately $1.4 million from this deceitful endeavor.

Last year, rug pulls contributed substantially to the industry’s $1.7 billion in losses due to fraudulent schemes. To be more precise, con artists stole an estimated $760 million using rug pulls and similar deceitful tactics, according to reports from blockchain security company Quantstamp.

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2024-04-18 13:52