OMG Network, the Ethereum (ETH) based scaling network, has been acquired by a subsidiary of Genesis Block, a Hong Kong based OTC trading company. Could this be a sign of renewal for the project formerly known as OmiseGo?
Venture capital firm buys OMG Network (formerly OmiseGo)
OMG Network acquired by an industry giant
The Layer 2 scaling solution based on Ethereum, OMG Network, ex-OmiseGo, has been acquired Genesis Block Ventures (GBV). This company is a subsidiary of Genesis Block, a Hong Kong-based over-the-counter (OTC) trading company.
Described as a „silent giant“ in the Asian cryptomatics industry, GBV has been actively involved in the development of decentralised finance (DeFi) in 2020. This would have notably established close links with numerous projects in Bitcoin Legacy the sector and above all platforms such as Binance and FTX.
GBV acquired OMG Network from SYNQA, its former parent company, which raised $80 million as part of its Series C financing round last June. As a result of this acquisition, the team and project activities are transferred from SYNQA to GBV.
Although the amount of the acquisition has not been disclosed, it is likely to exceed $100 million.
Although OMG Network has been rather discreet lately, the project still attracts major players in the ecosystem. Also last June, Tether’s USDT stablecoin became part of the network, an initiative justified by its practicality and performance.
Binance Exchange Logo
Trade the OMG on Binance“.
Time for renewal for OMG Network?
Following this acquisition, a number of integrations and collaborations are being prepared. GBV and OMG Network will work hand in hand to explore new approaches. The project is expected to enter the world of decentralised finance (DeFi) in the near future, notably with lending and trading platforms based on its network.
Since the beginning of this trend, OMG Network has not really been in demand, although the network is fully capable of hosting DeFi applications. As GBV states in its press release, OMG Network’s initial objectives will remain unchanged in the short term.
Of course, its native token, the OMG, will remain the token powering OMG Network. Moreover, the news has been rather well received. The price of the OMG has risen by almost 20% in just 40 minutes, from $3.7 to over $4.4. A rapid rise that will nevertheless have quickly stopped in its tracks:
OMG Network share price
Evolution of the OMG price on Binance – Source: TradingView – OMG/USDT
This major ally should help the project to stand out from its competitors and to come back to the forefront. Thanks to GBV’s relationships with the world’s largest exchange platforms, they may welcome new services linked to OMG Network.
However, it should be noted that OMG Network’s main interest lies in its network capacities, which are far superior to those of Ethereum at present.