What is OmiseGo?
A Beginner´s Guide to Buying, Selling, Using, and Mining OmiseGo:
An In-Depth OmiseGo Guide by Ya Poker
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Hundreds of ERC-20 tokens have emerged from different parts of the world in today’s expanding crypto economy. But few of them have climbed into the top 20 in market capitalization shortly after release. OmiseGo—or OMG—is one of the few considered to be a part of the top five digital assets of a blockchain project.
With a market cap of almost $900 million, its use case differs from most others, hence its potential. OMG solves the fundamental coordination problem between payment processors, gateways and financial institutions. From online gaming platforms to hotels, the OMG network will serve providers that accept digital payments. It has a decentralized exchange and an online payment API that enable merchants to accept payments on any platform anywhere and at any time.
It is shifting business processes from a single corporation to a decentralized and open network. This is to enable digital wallet providers to offer payment services Ya Pokeross borders and from digital to fiat currencies.
What is OmiseGo?
Run by Omise, a Thai startup, the OmiseGo project started out in 2013 to be an ecommerce platform. It later changed focus after a greater problem of a lack of payment options was identified.
The team found that payment platforms such as Venmo and Alipay created “a large emerging market of disruption” in digital payments. This is as a result of these platforms’ aversion to interchange Ya Pokeross networks which requires signiﬁcant overhead costs in trust. At the same time, parties are unwilling to use central counterparties.
So Omise chose to target entities seeking to provide eWallet services. Its focus is on entities that need more coordination among multilateral participants but lack required incentive for network eﬀects.
The OMG network helps resolve payments Ya Pokeross emerging eWallet payment networks. It decentralizes market liquidity, orderbook matching and execution. It also allows clearinghouse custodianship and high-scalability payments. Its peer-to-peer value exchange is based on the Ethereum network.
The startup’s core investors raised about $20 million in series A and B before their crowdsale past July in which they raised about $25 million. With offices in Thailand, Japan, Indonesia and Singapore, Omise has a huge market in Asia. They have capitalized on the reach to strike a few corporate arrangements that are now yielding a growing market.
Omise now works with AliPay and recently acquired one of the three largest payment service providers in Thailand, Paysbuy. The network is also proposing for McDonald’s Thailand to start using OmiseGo’s payment channel throughout its 240 outlets in the country.
How to use OmiseGo?
Several use factors put OMG’s investment potential at a positive high in the market.
The OMG network is currency-agnostic: cross-platform. As stated earlier, it can be used for purchases anywhere and anytime. It allows merchants to accept payments in many currencies.
It also allows incompatible eWallets on its secure payment gateway. This is a key utility that would see millions transacted on the network on a daily basis. For example, there are suggestions that some Asian financial firms will use the OMG network as a backend for existing digital wallets like WeChat Pay. Tourists, poker players, students and every other users that move often would find the network very useful.
It makes asset and currency transfers possible between parties without an intermediary bank or an account. Be it for shopping, casino games or tips, funds are easily accessible even in countries where financial regulations are strict. OMG’s eWallet framework allows financial service providers to select their offerings in line with prevailing regulations.
OMG is also an investor’s darling. Its circulating supply of over 98 million tokens (out of a total of 140 million) makes it viable for trading. When its PoS platform launches by the end of 2017, OMG would rise in market value far above its current price of $9. In fact, the global market potential for its value transfer service is indeterminate at this point. But the outlook indicates a huge market.
According to ICO Stats, OMG has grown its Return On Investment by over 3600% since its ICO in July 2017 when tokens sold for approximately $0.25 each. So far, a larger chunk of this added value is from community-driven and marketing hypes. The platform is not fully operational yet and its expansion drives are not in full swing.
So, based on its proposed use cases and the network’s potential market reach, a 5-fold value increase—or more—is likely in the next 12 months. For instance, Paysbuy’s 600,000 individuals and 15,000 businesses will consolidate into Omise’s market by December. Going by market trend, OMG’s capitalization could rise from its current $900 million to about $4.5 billion before the end of 2018. By then, 1 OMG could be worth more than $45. A growth in appreciation makes the token qualify as a store of value.
The OMG token is storable on a ERC-20 compatible Ethereum wallet such as MyEtherWallet or Jaxx on iOS devices. It can also be stored on hardware wallets such as Ledger Nano.
How to mine OmiseGo?
OMG is not mineable. Rather, it is a Proof of Stake (PoS) currency. Token owners earn fees when transactions confirm on the network to validate blocks. It is like mining but without the need for any hardware.
How do I buy OmiseGo?
Like most other tokens, it is easy to buy OMG from cryptocurrency exchanges. OMG has launched on several exchanges including Bitfinex, Poloniex, Liqui and EtherDelta. Users have the option to buy the token in pairs with either BTC, ETH, LTC, DOGE, CNY or USD.
Other exchanges that trade OMG are Bittrex, Binance, BX Thailand, HitBTC, Mercatox, Cryptopia, BTER, Novaexchange and Decentrex.
Exchanges that enable OMG/USD pair accept cash through bank transfers. Some of them accept credit card payments for the buying of OMG. It is easy to convert other ERC-20 tokens to buy OMG using instant cryptocurrency exchanges like Shapeshift and Changelly.
How do I turn OmiseGo into cash?
To turn OMG into cash, you can sell it on one of the exchanges that offer it for major cryptocurrencies like BTC and ETH. By so doing, they can liquidate into fiat currencies such as USD or EUR and withdrawn through the banks.
Cashing out through automated teller machines are also possible. Several crypto-backed debit cards such as TenX now convert ERC-20 tokens into fiat. The same goes for Bitcoin-backed Visa cards like BTCC’s Mobi Card.
OMG can also be exchanged between individuals based on agreed terms at a prevailing rate.
How will OmiseGo scale?
OMG uses Ethereum’s mainnet for economic security. Its launch was to support Ethereum scaling. OMG’s decentralised exchange has correct incentive alignment with Ethereum. It will support Ether unlike other tokens that take value out of the Ethereum ecosystem.