The OMG price surged by 20% moments after Genesis Block Ventures announced that it has acquired the layer-2-scaling solution so let’s find out more in the altcoin news today.
Genesis Block Ventures is an investment branch of the Hong Kong-based OTC trading company Genesis Block and it has recently acquired the layer-2-scaling solution for Ethereum, the OMG Network. Moments after the announcement, the OMG price surged by 20%, reacting positively to the news. The network was known as OmiseGo previously but now, the OMG network facilitates transactions on the Ethereum blockchain by handling them off-chain and operating a trustless scaling solutions.
GBV announced that the OMG network had become the “first major acquisition” for the company and it described itself as an “investment company with the mission of building the future through blockchain that has built a wide-reaching, vibrant blockchain ecosystem.” The venture company plans to leverage OMG Network’s blockchain to enhance the accelerated growth and to further boost the adoption in Asia and even further. The statement outlined the company’s active role in the Defi craze but it also admitted a few other challenges in the field which the network could help in resolving:
“GBV foresees the main headwind to the development of DeFi, is that Plasma is not EVM compatible, which makes the adoption of DeFi more challenging. As a leading layer-2 scaling solution for Ethereum, OMG Network supports the transfer of ETH and ERC-20 tokens with a throughput of thousands of transactions per second, scaling Ethereum and making it enterprise-ready.”
The two organizations will now try to leverage each other’s resources to build lending and trading platforms and to boost the DeFi mass adoption. GBV will “ensure the smooth transition of OMG’s Network team and business from SYNQA to GBV by minimizing the impact of the acquisition on the token price.” Despite the many efforts of Genesis Block Ventures t o reduce the dramatic price effects and swings, the OMG token reacted in a highly-volatile manner. The coin surged by 20% a few minutes after the announcement went live and the asset also marked a daily high of $4.42. This was the highest level recorded since November 26th.
However, after the acquisition passed, the price calmed down and as of the time of writing, OMG retraced back to $3.8.
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