OMNI post nearly 50% loss after airdrop and exchange listing

OMNI takes nearly a 50% dive as airdrop participants sell their tokens.
OMNI's crash follows that of Solana-based Parcl.
The underperformance may be due to the general crypto market slump.

Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.

OMNI underperforms after airdrop

Omni Network is a blockchain platform that aims to integrate Ethereum rollups.

Considering the restaking boom in DeFi protocols, OMNI airdrop participants and investors expected its price to skyrocket, similar to ENA and EtherFi. However, the platform, which aims to unite rollups, saw a massive decline in its OMNI token. As investors received the free OMNI tokens, many of the tokens were sold, possibly in a bid to collect liquidity.

Also read: Sui soars nearly 12% after partnership with BytePlus

The impact of the sell-off may also be because OMNI listed on several exchanges—including Binance, ByBit, and Bitget—at the same time, its airdrop went live. OMNI went live with over 10,000 OMNI tokens and soon began trading for around $53.81 before crashing to $27.18 at the time of writing. OMNI's trading volume is about $580 million.

OMNI's crash also aligns with the poor performance of the airdrop of Solana-based real-world asset derivatives trading protocol Parcl (PRCL). Investors expected the coin to trade around $1.5 to $2.0, but it was largely disappointing as it couldn't cross the $0.70 mark before crashing.

Wormhole, which airdropped its X token, has also lost about $1.5 billion from its market cap since launch. One major reason for these airdrops' recent underperformance may be the wider crypto market slump following tension surrounding a potential Iran-Israel conflict.

One crypto community member noted on X:

"People are down bad last few weeks. Makes sense they would take whatever liquidity they could get right now (...) In a fear based environment people insta dump airdrops."

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram