The Omni Network’s ERC-20 token OMNI experienced a sharp decline of over 55% within 18 hours of its airdrop, resulting in a significant reduction of its market capitalization.
Simultaneously, a counterfeit token under the same name faced a “rug pull,” causing its price to plummet by 100%.
The layer-1 testnet blockchain distributed 3 million OMNI tokens, equivalent to 3% of its total supply of 100 million tokens, to its community contributors on April 17. The market cap of OMNI stood at $560 million before the drop.
Following the airdrop, OMNI’s price swiftly declined by nearly 30%, dropping from $53.80 to under $39 within half an hour. The downward trend continued, leading to a substantial drop to around $24, marking a decline of over 55%.
Participants in the airdrop received 50% of the tokens, totaling 1.5 million OMNI, valued at approximately $36.2 million. The eligibility for the airdrop was determined through a snapshot on April 3.
The Omni Network outlined a comprehensive token distribution strategy, including allocations for ecosystem development, advisers, and investors. A significant portion of the tokens were set aside for various purposes, such as launch pools, liquidity, and ecosystem development.
In a separate incident, developers of a fake OMNI token executed an exit scam, resulting in losses amounting to $398,000. The fraudulent token’s smart contract dumped over 1.7 quadrillion tokens for 132 Wrapped Ether (WETH), leading to a complete loss for investors.
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