OmiseGO cryptocurrency overview

2021.01.12 2021.01.12 OmiseGO cryptocurrency overview

Oleg Tkachenkohttps://www.litefinance.org/blog/authors/oleg-tkachenko/

OmiseGO: platform overview, features, earning on cryptocurrency

OmiseGO confidently takes place in the TOP-50 in terms of capitalization. It is a token designed to provide a blockchain platform for financial transactions of any type. The developers have united in a platform cryptocurrency and fiat markets, providing an opportunity for counterparties anywhere in the world to almost instantly make financial transactions in any currency unit with minimal conversion costs. In this review, you will learn what OmiseGO platform and its cryptocurrency are, about its tasks, advantages and disadvantages.

OmiseGO - a universal platform for multicurrency transactions

“An era of bank wire transfers and payment systems is coming to an end” - this is exactly what the OmiseGO developers had in mind when proposing a new exchange platform in 2017. The number of cryptocurrencies grows, so the number of people willing to invest in them is more and more, from year to year. How to easily buy cryptocurrency for fiat money in a particular country or to exchange within the cryptocurrency system itself? Most exchanges support mainly BTC, ETH and USDT, with almost only fiat currency being USD. What if I need to change NANO to DGB? This can be done by using cross rates and transferring money from one exchange to another until successful transaction is completed. This is all a waste of time for registration, verification and financial losses on commissions. The problem was taken to solve by the developers of OmiseGO.

OmiseGO cryptocurrency: idea behind it, advantages and how to make money on it

Omise was founded in 2013, when very few people knew about cryptocurrency, and certainly no one thought of the imminent triumph. Initially, it provided payment services in Japan, Singapore, Indonesia, and Thailand, leaving the Pacific region and Asia by 2016. It was for this year that the Omise team had the idea to combine cryptocurrency and fiat markets on a single platform using blockchain technology, which would guarantee transaction security, minimal financial costs and almost instant data transfer. So in 2017, a start-up OmiseGO appeared, and the reputation of Omise Corporation became for investors a guarantee of reliability.

OmiseGO is a blockchain platform for currency exchange, cryptocurrency, and real-time transactions, no matter where in the world counterparties are located. For example, a person from India wants to buy goods from a seller from Denmark who is ready to accept only the BTC. The buyer sends the payment in Indian rupees, the seller withdraws them in Denmark already in the BTC. Instead of looking for a bank that would agree to accept rupees (after all, the buyer may be in another country, and rupees do not belong to freely convertible currencies), open an account, solve the problem of converting fiat money into cryptocurrency, it is enough to register a wallet in OmiseGO. Circulating supply of coins is slightly over 140 million OMG.

Something similar is offered by the developers of Ripple. Despite the fact that, in terms of the similarity of the idea, they are competitors, there are fundamental differences between them both in technical terms and in positioning:

• OmiseGO covers a wider payment area. If Ripple is viewed as a cryptocurrency counterpart of SWIFT (the role of payment system), then the goal of OmiseGO is to combine currency exchange and payment services. The platform allows you to receive salaries, issue and repay loans, buy goods - without opening a bank account (the role of payment system, conversion center, financial intermediary).
• The OmiseGO platform is based on the Ethereum blockchain, although in the future developers plan to switch to their own system. Ripple is an independent platform.
• The OmiseGO consensus algorithm is a classic PoS (Proof-of-Stake, to which Ethereum, which has problems with scaling, has not been able to move to for a long time), OmiseGO mining is not provided. Ripple has its own unique algorithm (originally RPCA).

The network has a mechanism responsible for ensuring liquidity (sufficiency of funds for instant exchange). There is an analogue of the “clearing house” and a gateway for storing digital assets with the possibility of their management. Apparently, the developers expect with the expansion of the network and the growth of its participants to introduce control over the volume of transactions in one or another currency in order to prevent artificial shortages. Although it is difficult to imagine how this mechanism will work. So far, it is not worthwhile to delve into the essence of how the conversion takes place using smart contracts.

Advantages of OmiseGO cryptocurrency:

• Instant transaction. The problems inherent in the BTC and ETH are excluded. This system was developed to solve the problems of platforms on the PoW-algorithm, but soon introduced its own unique innovations.
• Lack of control over transactions by financial regulators and states. On the one hand, this is a plus for those who minimize taxation and are not ready to disclose the structure of their income. On the other hand, this is also the reason why the platform may have problems in individual countries. And this may partly affect the growth rate of the price.
• Reduced commission costs. The costs of conducting transactions in a cryptocurrency environment are significantly lower than in classical payment systems.

And one more advantage of this platform is personal support of Vitalik Buterin, who previously called this project one of his favorites.

OmiseGO has another unique feature - the SDK-type wallet. An SDK is a development toolkit that allows a user to create applications for operating systems and software. The user can stylize and optimize the wallet (in this case, the wallet serves as something like a user account) for his type of activity, adding the required applications to it. For example, one can add a system of automatic accrual of bonuses and discounts for regular customers, etc. The use of an open type protocol for transactions makes it possible to simplify and make the interaction between wallets of radically different types flexible. In other words, no matter how wallets are set up and for what task are they “sharpened,” there will be no problems with conducting transactions.

Where to buy and store OmiseGO cryptocurrency

1. Cryptocurrency exchange. Despite the fact that the coin is among the TOP-50 in terms of capitalization, its trading volume is unevenly distributed among exchanges. This suggests that OmiseGO is interesting only to a narrow circle of people (although this is only an opinion). The trading volume is distributed as follows:

• Huobi Global (www.hbg.com) - 14-15%. One of the old cryptocurrency exchanges, included in the TOP-15 in terms of daily trading volume. You can buy a coin here for USDT, ETH, BTC. In the trading volume structure of the stock exchange, OmiseGO occupies an insignificant share, being below the 60th place.
• ZB.COM (web.zb.com) - a little more than 9-10% of the trading volume. A relatively young exchange, which in 2017 took over cryptocurrency trading after the ICO ban in China. In terms of the volume of exchange operations, the stock exchange serving South-East Asia is one of the largest (14th place in daily trading volume), but is not included in the TOP-10 favorite traders. In the trading volume structure of ZB.COM, OmiseGO itself ranks 12th with 2.44%. In the first place  stands EOS with 15%. You can buy a token here only for BTC and USDT.
• IDCM (www.idcm.io) - 11-12%. A small Chinese stock exchange, with a significant trading volume of only the top pairs. You can buy OMG here for BTC.
• BitForex (www.bitforex.com) - 4-5%. Another relatively well-known new stock exchange, which occupies the 8th place in terms of daily trading volume. In the trading volume structure, OmiseGO is ranked 20th with less than 1%. The coin is  sold only for USDT.

The other exchanges account for a little over 60% of trading volume, which is relatively evenly distributed in the range from 0.1% to 6%. On large stock exchanges (OKEx, Binance, HitBTC), OmiseGO trade is insignificant. In addition to the above currency pairs, OmiseGO can also be bought on some exchanges for KRW (South Korean Won), Ripple, TRY (Turkish Lira). Despite the fact that in the list of the CoinMarketCap website monitor there are a few dozen pairs in conjunction with OMG, daily trading volume for them is less than 0.1%.

The fact that OmiseGO has been listed at more than 50 exchanges can be called a competitive advantage. But trading volumes for more than 90% of them are less than 1%, which levels out this advantage. There is a logical explanation for this: OmiseGO is not a speculative asset, like TOP-10 coins. Investors consider cryptocurrency as a tool for long-term promising investment, so they prefer to not move it anywhere and just store it on cold wallets.

2. Cold wallets. Storage of OmiseGO on ordinary digital wallets is still problematic. Theoretically, the platform has its own SDK wallet, but only its beta version has been launched in 2018. The developers promised to launch a wallet with full functionality by the end of 2018, but so far this has not been done. For long-term storage one will have to use versatile wallets, for example, Exodus. On the site, MyEtherWallet and Mist wallets are recommended. By default, OmiseGO is not included in them, so you will have to install it manually. Each wallet is different, the description of how to install it can be found on the Internet.

3. Brokers. The possibility of earning on OmiseGO using cryptocurrency exchanges is limited by three factors:

• The inability to make money on falling prices (short positions).
• Narrow selection of cryptocurrency pairs. The exchanges practically do not provide other options besides BTC, ETH, USDT.
• The risk of hacking and bankruptcy of the exchange (traders’ wallets hacks on cryptocurrency exchanges occur almost every month).

Cold wallets have a different problem - the inability to quickly buy or sell a coin. In a market where volatility is 2% per day is the fact, liquidity plays a significant role. The alternative is brokers. Trades here are conducted not in the coins themselves, but by the contracts for difference (CFDs), a broker is more reliable than a cryptocurrency exchange. Trader’s money is stored in segregated accounts, and the broker is usually controlled by a financial regulator.

LiteFinance broker offers you to try your hand at cryptocurrency trading. In your personal account, you can select a pair of OMG/USD and test your knowledge on a demo account. Instant execution of orders allows you to respond to any price changes in one direction or another and make money on short and long positions.

Prospects for investing in OmiseGO cryptocurrency for investors

In the first 2 days after the ICO project, the startup attracted $25 million with the planned $19 million. In the next 6 months, investors could earn almost 5000% - if at the time of launch the price was $0.53 dollars, at the peak of growth OmiseGO rose to $26.14. Now startup prospects depend on the following factors:

• The general trend of the cryptocurrency market. Almost all the prices of coins move in the same direction, forming a growing or falling tendency of market capitalization. But there is a pattern: in moments of growth, the price for the BTC, which serves as a benchmark, grows slower than the price of OmiseGO.
• Interest in the platform of large corporations and developers’ actions. In 2018, the OmiseGO team entered into a partnership agreement with Shinhan Bank, one of the largest in South Korea. The purpose of the agreement is to create a new model of the world economy built on decentralized financial technologies. Other partners of the OmiseGO project include such financial institutions as SMBC, GGV, EastVentures and others.

There are some problems with the platform. In particular, it is not known when the OmiseGO Network (part of the OmiseGo platform) will be launched, which should have already been launched in early 2019. Schedule lag is the main problem that hinders the attraction of new partners. But It should be noted that the work does not stand still and slowly but surely moves forward. By the way, the same problem persists with Ethereum, on the blockchain of which OmiseGO is based.

Another problem is the support of only a few cryptocurrencies from the TOP. So far, OmiseGO only supports the most popular currencies and cryptocurrencies, thereby being no different from exchanges and banks. There is a risk that the platform will not be developed fully and, due to investors' frustration, the price of the token will fall. However, most of the top 50 startups are also under development, so in the short term this risk is minimal.

• Recommendation: diversify risks and add OmiseGO to your portfolio for long-term investment or earn intraday on a pair of OMG/BTC, tracking the volatility in one direction or another. Although it is still far from the full launch of OmiseGO, the course and credibility of the developers will help you earn on the cryptocurrency.

Conclusion. The OmiseGO platform is another large exchanger of B2B, P2P and other formats of financial relationships. Competition in this segment is still moderate, but it is worth noting that most startups are still in development and have not yet been launched fully. Therefore, so far the prospects for OmiseGO cryptocurrency are bright and the only question is how quickly developers will be able to bring their ideas to life. The price of the token will depend primarily on the overall market trend and, secondly, on the development of the platform and the attraction of large players to the partner network.

So far, the development team is doing quite well, and then, my advice to all investors: catch the moment of high market volatility and follow the news from OmiseGO. If you have any questions - ask them in the comments and you will find out everything that interests you in the cryptocurrency market!

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Price chart of OMGUSD in real time mode