At the end of last week, the newly discovered coronavirus variant Omicron spooked the markets, leading to a huge crash in stocks and cryptocurrencies. But while Bitcoin and Ethereum dropped significantly, another previously unknown cryptocurrency switched into rally mode.
Investors in the crypto market should already be used to a lot – from strong price fluctuations even in the established cyber currencies Bitcoin and Ethereum to declared fun tokens like Dogecoin, which suddenly become more valuable than many serious coins. Since the end of November, the crypto market has been enriched by another phenomenon: while numerous cryptocurrencies dropped sharply with the emergence of the new variant B.1.1.529 of the Corona virus, a previously unknown cyberdevise shot up – and apparently only because it was also named after the Greek letter Omikron – in English Omicron – which is now also the official name of the new Corona variant.
OMIC token with price jump
The cryptocurrency OMIC, which was only launched at the beginning of November by the currency project Omicron DAO and is still hardly widespread, apparently became the focus of some crypto speculators at the end of last week after the WHO classified the newly discovered Corona variant B.1.1.529 as a “worrisome virus variant” and also assigned it the name Omicron.
Due to the numerous mutations in Omicron, public interest in this variant is significantly greater than in other virus variants since Delta – which apparently also influenced the interest in the cryptocurrency Omicron: While OMIC was bobbing along at 64 US dollars to 70 US dollars at the beginning of last week, according to data from “CoinMarketCap”, it went up strongly for the coin, especially last weekend.
At times, the OMIC token rose to an all-time high of 692.11 US dollars, increasing its value approximately tenfold within a few days. Currently, the Omicron price has come back a little and is hovering at around 425 US dollars, but even that is still a big plus compared to the previous week.
According to “Cointelegraph”, the Omicron token is based on the Ethereum Layer 2 solution Arbitrum and is a decentralised reserve currency protocol. The OMIC token is backed by other crypto assets such as the stablecoin USDC. According to ” Forbes “, it can only be traded on the decentralised exchange SushiSwap, which is controversial due to the lack of a competent central authority, according to “Forbes”.
Omicron’s trading volume is correspondingly low. With reference to “CoinMarketCap”, the daily trading volume in OMIC was significantly higher during the weekend rally than before the discovery of the new Corona variant. Still, only OMIC was traded for around 414,000 US dollars. According to CoinMarketCap, only 2,430 of a million possible coins have been created so far. Due to a lack of reliable data, the portal does not indicate how many of these are actually in circulation – and therefore does not calculate a market capitalisation.
Price increase without fundamentals: New meme coin or rug pull?
Since there has been no news from the Omicron Dao currency project in the last few days – and other cryptocurrencies fell in the wake of the stock market crash – the price increase of OMIC may indeed be solely due to the name of the new corona variant.
Therefore, it is questionable how long the coin will be able to maintain these highs. There is already speculation on Twitter that OMIC is just another sign that there is currently a huge bubble on the market and could end in an abrupt rug pull.
However, other Twitter users believe that OMIC could also develop into a new meme coin whose price increase is more sustainable.
Examples of such meme cryptocurrencies are Dogecoin or Shiba Inu, which initially also rose for banal reasons that had nothing to do with what was happening on the market but have successfully defended some of their gains to this day. It remains to be seen in which direction OMIC will develop – and possibly also depends on what insights are gained into the Omikron variant in the coming weeks.