The OMNI token, native to the Omni Network, experienced a significant decrease in value of over 55% within just 18 hours after an airdrop event took place. This led to a loss of more than half of its market value. Consequentially, a fraudulent token with the same name encountered a 100% decrease in price due to a rug-pull scam carried out by the project team.
What is Happening at Omni Network?
On April 17 at 14:00, the OMNI token was launched, with 3 million tokens (3% of the total token supply) distributed to eligible users during the airdrop event. The initial market value of OMNI was $560 million at the time of the airdrop.
Shortly after, the price of OMNI dropped significantly by 30%, falling below $39 in just half an hour. The token continued to decline, reaching below $24, resulting in a total drop of over 55%. Currently, as per CoinGecko, OMNI's market value stands at $267.5 million, with a fully diluted valuation of around $2.57 billion.
The airdrop event allocated 50% of the latest tokens to test network users, developers, and community members, totaling approximately $36.2 million. The distribution criteria were based on a snapshot taken on April 3. The remaining tokens were distributed to EigenLayer restaking users and other projects like Pudgy Penguins in the NFT sector.
Omni Network announced on April 15 that 9.27 million OMNI tokens were reserved for public launch tokens used in launch pools and liquidity.
OMNI Token Supply and Distribution Process
A significant portion (29.5%) of the OMNI token supply will be allotted for ecosystem development, with Omni Foundation deciding the initial distribution. Investors and advisors received about 23.3 million tokens, which is nearly a quarter of the total supply.
Advisors received 625,000 OMNI tokens valued at $15 million on April 17, and will be eligible for an additional 875,000 tokens after a year. Every six months for two years, the community will receive 437,500 OMNI tokens. Investor tokens are under a three-year unlocking program, with 6.7 million tokens unlocking after 12 months and the rest unlocking every six months until all allocations are released.
In contrast, developers of a fake OMNI token implemented a rug-pull scam worth $398,000. After deploying the smart contract, more than 1.7 quadrillion tokens were sold for 132 Wrapped Ethereum (WETH), causing the fake token's value to plummet by 100%.
This information was originally published on COINTURK NEWS.
