A virtually obscure cryptocurrency token called after the Greek letter Omicron witnessed its price increase more than tenfold in two days. It surpassed prominent cryptocurrencies such as bitcoin and Ethereum, just after the World Health Organization (WHO) called the latest Covid-19 variant Omicron.
The Rise of Omicron
Omicron’s value grew from $64 to $692 from November 27 to November 29. On Tuesday, though, it settled at roughly $420.
According to analysts, this spike is solely due to its name with the new Covid-19 variety.
Still, it was surprising that the WHO missed two Greek alphabet letters in designating the virus variation – Nu and XI. According to the WHO, labelling the variant “Nu” would have been confusing because people would have confused it with the similar sounding word “new.” On the other hand, using XI would have resulted in the stigmatization of a region.
It’s worth noting that WHO uses the Greek alphabet to label significant Covid-19 variations. And so, should a new variant surface, it would be labeled Pi, which is also the name of a cryptocurrency.
Nevertheless, experts point out that trade in Omicron is indeed speculative, and they relate it to investing in Dogecoin (Dogecoin, a meme coin based on one of the internet’s favorite memes of a Shiba Inu dog, soared 400 percent in a single week in April and accordingly captivated the crypto community’s attention).
Siddhant Raizada, global marketing head of Kristal.AI, stated, “This is like Dogecoin, which is fueled by speculation but has no use case.” Because any project does not endorse Omicron crypto, there is no incentive to justify its use. There is no reason for its pricing to rise or be valuable. It’s entirely random and hypothetical.”
Dogecoin has risen by approximately 6,000% in a year. Its price had been flat for the previous five years until April of this year, when the rise began.
Before unveiling the novel Covid-19 type, the Omicron virtual currency had only reached a high of $205, and it was trading at roughly $64.
Cryptocurrency prices are skyrocketing for strange reasons!
Meme coins, such as Shiba Inu coin – cryptocurrencies based on memes or launched as jokes – witnessed their prices skyrocket entirely due to online excitement. Still, they lack any core technology or application; they’re just hilarious or have the face of an adorable puppy.
It’s pretty challenging to say what motivates individuals to purchase a cryptocurrency like the Omicron. Cryptocurrency tokens vary from cryptocurrencies such as Bitcoin. For instance, unlike cryptocurrencies — which use their blockchains, the core technology on which virtual currencies assets are created— tokens are based on pre-existing blockchains.
Some folks may be bewildered and believe the Omicron crypto has something to do with COVID-19 recovery. Others may be intrigued by it now because it has received so much attention. Then they begin to pile on. When the price of a cryptocurrency climbs sufficiently to catch the attention of other investors, momentum takes over, and the price frequently begins to soar much farther.
In essence, popularity feeds popularity because individuals are afraid of missing out on the next opportunity.
This isn’t the first time news, or popular culture has caused a crypto currency’s price to skyrocket.
For instance, earlier this year, the Squid token, based on Netflix’s top-rated show “Squid Game,” rose as high as $2,861 before plummeting to $0 as crooks stole an estimated $3.38 million.
During the early stages of the pandemic, there was another currency called the “CoronaCoin,” a coin that morbidly wagered on the amount of people who became ill with the virus.
Investors should exercise caution since these altcoins lack the stability of coins like Bitcoin and Ethereum, according to Daniel Polotsky, co-founder and chief advisor of Bitcoin ATM business CoinFlip.
The wording can also work in the opposite direction, with non-crypto businesses attempting to capitalize on the crypto craze. For instance, the Long Island Iced Tea Corp., which manufactures beverages, renamed itself “Long Blockchain Corp.” in 2017. The company stated in a news statement that it is “moving its major corporate focus forward towards the research of and investment in possibilities that exploit the advantages of Blockchain – based technology.”
CNBC claimed at the time that the company’s shares jumped 200 percent at the outset of trading following the news, but the boom was short-lived. Long Blockchain Corp.’s stocks were later delisted after the US Securities and Exchange Commission stated that the crypto pivot did not take place.
Omicron’s leading site characterizes the coin as a “decentralized currency protocol built on Arbitrum.” As of now, there is no sign that this Omicron is any dicey than other digital currencies, but many are making comparisons between its meteoric ascent and that of Squid Game coin, which has nothing to do with the hit Netflix program.
Omicron is a decentralized reserve money mechanism based on the OMIC token distributed on the Arbitrum network. Each OMIC token is secured by a trove of assets in the OMIC treasury, providing it with an intrinsic value that cannot be depreciated. Through bonding and staking cryptos, OMIC also adds novel economic dynamics.
Experts have advised investors to exercise caution and assess their holdings in the OMIC token because very little is known about the coin, and there is limited data accessible concerning the token’s validity. They are hoping to stop similar incidents like the Squid Game crypto.
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