OmiseGo’s OMG token is an ethereum based, open source public blockchain that has been going downward with the market flow. Now, as Stripe made plans to stop accepting bitcoin in April and spoke positively on OmiseGo, OMG has reversed the losses and recovered some of its previous levels.
Stripe’s positive comments resulted in OMG’s price rise
A public ethereum based financial technology OmiseGo is used in a mainstream digital wallet that allows the peer-to-peer exchange in real time. In the last two weeks, the token of OmiseGo that is OMG has gone through both boom and bust. OMG has been heading towards $25 before it sank back to a $13 low. However, OmoiseGo has begun to recover its losses and start an ascent.
Today, Stripe announced that it will no longer take Bitcoin as a payment while favouring the ethereum’s and OMG tokens regarding their potential to achiever cheaper and faster payments. Stripe is an online payment processing firm that helps over 100,000 businesses and handles about billions of dollars worth of transactions every year.
Now, payment processing company is halting the bitcoin support citing high fees and fewer user cases the points for the same. An Irish technology company, Stripe had been very much receptive to cryptocurrencies but will now stop supporting bitcoin from April.
Tom Karlo, the project manager explained:
“Our hope was that Bitcoin could become a universal, decentralized substrate for online transactions and help our customers enable buyers in places that had less credit card penetration or use cases where credit card fees were prohibitive. Over the past year or two, as block size limits have been reached, Bitcoin has evolved to become better-suited to being an asset than being a means of exchange.”
Though Stripe hasn’t given any official indication of adding digital assets, the company has spoken in favour of other cryptocurrencies, as stated here:
“Despite this, we remain very optimistic about cryptocurrencies overall. There are a lot of efforts that we view as promising and that we can certainly imagine enabling support for in the future. We’re interested in what’s happening with Lightning and other proposals to enable faster payments. OmiseGO is an ambitious and clever proposal; more broadly, Ethereum continues to spawn many high-potential projects.”
OmiseGo’s development is a work-in-progress
Unlike other assets such as NEO, OMG has yet to give such wild returns, though the project claims of gains in the long term. OMG is already working on the right model of staking for which the redistribution of faulty coins mechanism is being considered.
OMG team explained that:
“Staked tokens will be sent to a smart contract and frozen on the root chain. Each validator node will connect to a staking contract address that the network will be allowed to slash from or send returns to, according to the validator’s behavior.”
OmiseGo is already on the move and ensuring that its validation nodes don’t require complex and specialized hardware. However, the challenge is to deploy side chains and Plasma network because the final product of OMG will rely on ethereum main blockchain for settlement only partially.
Do you think OMG will reach $50 in next few weeks? Let us know your thought in comments below.
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.