- Unfamiliar crypto, Omicron, witnessed an unprecedented price rise after the WHO gave the same name to the new COVID-19 strain.
- Analysts opine that this unexpected price rise is a mere coincidence with the new COVID-19 variant.
- Investors must be cautious of such crypto coins, whose bizarre rally result in the erosion of investors’ wealth.
As the emergence of a new COVID-19 variant, Omicron in South Africa, has spooked the entire world, a lesser-known cryptocurrency bearing a similar name shot to fame.
Source: Copyright © 2021 Kalkine Media
The price of the relatively unknown cryptocurrency, Omicron, whose native currency is OMIC, witnessed a record surge in its prices ever since the WHO gave the new variant the same name.
On 27 November, the crypto was worth US$65, but its price shot up by nearly 945% and reached an all-time high of US$689 on 29 November.
However, it tumbled down to US$324.73 at the time of writing.
Why is there euphoria around Omicron crypto?
Analysts believe that the sudden soar in the prices of this relatively unfamiliar crypto was purely due to the name it shares with the new COVID-19 variant.
Also, its trading was entirely based on speculation and had nothing to do with any use case.
It must be noted that with no project backing, Omicron crypto has no utility to defend the usage of its token and has just around 1,000 followers.
Know the Omicron crypto
Created in early November this year, it had no reference to the deadly virus at the time of its launch.
It operated on the Ethereum layer, having a maximum supply of one million tokens.
Currently, the Omicron crypto can be traded only on Sushiswap, a decentralised exchange.
A look into other coins which experience similar price surge
Apart from Omicron crypto, there are few other tokens that have greatly benefitted from notoriety from the real world.
One such crypto is the Squid coin, which was developed by the admirers of the famous Netflix series Squid Games. With an initial value of US$0.70 on 21 October, it rose to US$2.86 on 1 November.
However, it dropped to US$0.003 the following day as investors realised that they were unable to cash out their profits, and the Squid coin’s creators vanished from social media.
Investors should be wary of such tokens, which do not have any credible backing and have no alignment to their price trends.