Omni Network Token Plummets 55% Following Airdrop, Counterfeit Token Results in Total Loss

The OMNI token of the Omni Network experienced a significant decrease, plummeting by more than 55% less than a day after its distribution. This sharp decline has erased over half of its market value.

This layer-1 testnet blockchain, designed to bridge Ethereum rollups, allocated 3 million OMNI, which is 3% of its entire 100 million token stash, to its community contributors. This event took place at 11 am UTC on April 17. Prior to the drop, OMNI's market capitalization stood at $560 million.

Within a brief 30 minutes post-airdrop, the value of OMNI fell drastically from $53.80 to just below $39 and continued to decline to approximately $24, marking a total reduction of over 55%. The current market cap now sits at $267.5 million with a fully diluted valuation nearing $2.57 billion, as reported by CoinGecko.

During this airdrop, half of the tokens, amounting to 1.5 million OMNI valued around $36.2 million, were distributed among early testnet users, builders, and community members. The distribution was based on a snapshot taken on April 3.

The remaining shares were distributed amongst various partners, including EigenLayer restakers and certain nonfungible token (NFT) projects like Pudgy Penguins.

Source: Omni Network

On a separate note, the Omni Network announced on April 15 that it would reserve 9.27 million OMNI — 9.27% of its total supply — for public launch activities, such as launch pools and liquidity provisions.

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Source: Omni Network

The major portion of OMNI, amounting to 29.5 million tokens or 29.5% of the supply, is allocated for ecosystem development, to be distributed at the discretion of the Omni Foundation.

Advisers have just received 625,000 OMNI valued at $15 million. Additional distributions of 875,000 OMNI will follow annually with further disbursements every six months over the next two years.

The investors’ tokens are set on a three-year unlocking schedule. Nearly 6.7 million tokens, worth almost $161 million today, will be available after 12 months, with subsequent releases every six months until completion.

Simultaneously, developers behind a counterfeit OMNI token have orchestrated a $398,000 fraud. Blockchain security firm PeckShield revealed on April 18 that this bogus token plummeted 100% after its associated smart contract dumped over 1.7 quadrillion tokens for 132 Wrapped Ether (WETH).