CoinMarketCap takes a deep dive into Omicron (OMIC), a DeFi token that spiked 900% due to the emergence of a fast-spreading COVID-19 variant with the same name.
Omicron (OMIC) is a decentralized reserve money platform, based on OlympusDAO DeFi technology. It operates on the Arbitrum Network, which is based on the OMIC token.
A unique point of the OMIC token is that it is backed by assets that provide it with a set intrinsic value. The ultimate goal of the OMIC token is to empower its infrastructure to grow and to create wealth for every shareholder involved in the system.
Omicron’s (OMIC) Sudden Price Spike & COVID-19
Almost any crypto asset even vaguely related to the COVID pandemic has increased in price since its inception — and the OMIC token is no exception.
According to the World Health Center (WHO), the Omicron virus (a variant of Covid-19) was found on Nov. 26, 2021. The virus has several mutations, and it reportedly spreads very easily and quickly as compared to other variants of Covid-19. After the virus was named “Omicron” by Tulio de Oliveira and his team members at the Nelson Mandela School of Medicine in Durban, South Africa, the price of the Omicron (OMIC) started to pump and dump before eventually reaching an all-time high of $689.12.
Cynics have noted that it would be possible for the creators of OMIC to have predicted that a Covid variant named after the Greek letter “Omicron” would eventually come about, considering the pattern of naming each variant in the past.
How Does Omicron (OMIC) Work?
According to the official whitepaper of Omicron (OMIC), it contains a protocol-controlled treasury and liquidity, a bond mechanism and staking rewards, all of which are aimed at limiting supply growth. Bond sales help fund the protocol, whereby the Treasury uses to mint OMIC and issue them to stakers. Omicron's protocol can generate its own liquidity by using liquidity bonds.
The Team Behind Omicron (OMIC)
The team behind the OMIC token is unknown; however, the website does state that all the team members are “born” from the DeFi community.
Unique Features of Omicron (OMIC)
Staking
Staking is OMIC's key value accrual method. By staking their OMIC on the Omicron platform, holders can get rebase payouts. The rebase rewards are calculated using bond sale profits and may vary based on the amount of OMIC staked in the protocol and the monetary policy reward rate.
As your investment in OMIC grows, so does your cost base, which is gradually approaching $0. This means that, even if the market rate of OMIC falls under your original purchase price, if you stake for a long enough period of time, the increase in your OMIC balance will eventually overtake the price reduction.
You freeze OMIC and get an equal quantity of sOMIC when you stake.
Bonding
Omicron's auxiliary value accrual approach is bonding. This enables Omicron to obtain its own liquidity as well as other reserve assets such as USDC by selling OMIC at a discount in exchange for these assets. The protocol provides the bonder with information such as the bond price, the number of OMIC tokens that the bonder is entitled to and the vesting period.
Omicron can generate its own liquidity by bonding. Their personal liquidity is referred to as POL. To improve market processes and safeguard token holders, more POL ensures that existing liquidity is constantly locked in our trading pools.
Backed by Stable Asset(s)
Each OMIC token is insured and backed by USDC. Because every OMIC is supported by the Treasury with at least one USDC, the protocol would purchase back and burn OMIC if it went below that amount.
Due to the protocol's absence of a maximum limit, OMIC might still trade for more than 1 USDC. To put it another way, the OMIC intrinsic value or floor pricing is 1 USDC. The correct price, in the OMIC creator's opinion, will always be 1 USDC plus premium, but the market will finally decide on the actual price of the token.
Supply Growth
It is a fact that crypto users are confident in transacting with stablecoins because they know they will have the same purchasing power today as they will tomorrow — unlike Bitcoin, Ethereum, and other altcoins, which are volatile.
However, according to the creators of the OMIC token, this theory about stablecoins is a fallacy. The U.S. government and the Federal Reserve are in charge of the USD currency. This implies that as the value of the dollar falls, so will the worth of these stablecoins.
Omicron has responded by introducing OMIC, a free-floating reserve money anchored by a portfolio of assets. Omicron expects that by focusing on supply growth rather than price appreciation, OMIC will be able to act as a currency that can maintain its purchasing power despite market instability.
Omicron (OMIC) Tokenomics
The maximum supply of Omicron (OMIC) token in the market is 1,000,000, according to data on CoinMarketCap.
Omicron (OMIC) Price
Omicron (OMIC) is now trading at around $124.04, as of Dec. 6, 2021. Its 24-hour trading volume on exchanges is around $12,331.
Omicron (OMIC) Price Prediction and Future Outlook
The price surge in the Omicron (OMIC) virus is truly astonishing. A nearly 900% increase in a matter of 48-72 hours is not a small feat; however, does this mean OMIC is a good investment? That is a tricky question, if you consider all the factors associated with the OMIC token.
The first scenario is that the Omicron (OMIC) virus, according to WHO, spreads at a much faster rate than other COVID variants. If the virus isn’t controlled, the trends of #Omicron will continue to circulate on social media and that means the price of the OMIC token could rise higher.
The alternative scenario is obvious, which is that a vaccine is crafted swiftly and the Omicron virus isn’t allowed to spread. If this happens, a dump may be witnessed by the OMI token holders in the near future.
It should be noted that the Omicron (OMI) is moving towards creating a policy-controlled currency system and a DAO-governed model. The creation of these models will mean that Omicron (OMIC) may be seen as a contender in the race of popular DAO tokens including UNI, AAVE, MKR and others. With the overall market cap of DAO tokens standing at a whopping $40,623,747,809, the addition of OMIC into the huge world of DAO tokens is likely to increase its price, with the next target for the token set at $1,000.
As described above, staking is one of the main offerings of the Omicron platform. Users can stake their OMIC tokens on the Omicron website and earn rebase rewards. The initial holders of the OMIC token can stake their tokens and add an ample amount of security to their holdings. Even if the price of OMIC dumps below the user's buying price, the long-term staking period would eventually recover it. The staking feature may become an attractive spot for a whale investor who can invest in this project and plan to ride on the Omicron similar name ride for as long as they can.
Overall, the Omicron (OMIC) token is a very cautious buy at this time. This is because the token has already come down from its all-time high of $689.12 and is currently trending at $124.60.
The graph below shows the data from Nov. 29-Dec. 9, 2021. This affirms the theory of public sentiment behind the price of the OMIC token. It can be seen that the price of the token spiked and then dumped hard before making some highs and then dumping again.
Source: OMIC token data from Nov. 29-Dec.9, 2021
Considering this unusual behavior and the sudden inbound and outbound volume change in the OMIC token, expert analysis suggests that there is an equal chance of a pump or a further dump from this price. However, if you still want to invest, do so after doing ample research, following the latest research on the Omicron virus and the project as well.
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