The OMI Cryptocurrency: Explain
I bought into the OMI cryptocurrency and invested $150,000. If you’ve ever heard about crypto kitties, that was one of the first applications of NFTs. NFTs were supposed to be used in supply chains to prove the authenticity of goods. If I placed an order, I’d be able to verify that authenticity utilizing the blockchain. But sometimes, when you create an idea, it evolves and becomes something else which is why NFTs shifted and became more central to the art world, and now you have things like TopShot, Cryptokitties, Beeple, Blau, etc. – this is where Ecomi comes in.
I don’t want to make this video to just pump this coin, mainly because, full transparency, I own around 16 million coins – this is not a perfect project – it has flaws, risks, and you should know about all of them.
The OMI Cryptocurrency Background
There are three names you’re going to hear a lot, Ecomi, VEVE, and OMI. Econo is the company that started this whole thing. It’s a Singaporean tech company that created the VeVe platform. VeVe an app you can download on your phone right now (not paid or sponsored) where you can buy NFTs or digital art ranging from common, rare to even one of a kind. What the Ecomi team did was they bought a bunch of costly and exclusive licenses to have the rights to create NFTs – think of VeVe as trying to be a sort of a Netflix but for the NFT world. How did they get their licenses? They hired Alfred Kahn – the creator of the 4Kids channel if you remember watching that growing up.
In the 1990s, he brought over a small brand called Pocket Monsters from Japan which was rebranded to Pokemon. Hence, it’s possible that America would have never grown up with Pokemon if it wasn’t for him finding that trend in Japan and bringing it to the US. He’s also done licensing deals for Ninja Turtles, James Bond, Cabbage Patch, Mario Bros, Zelda, Donkey Kong, etc. What is OMI? OMI is one of the currencies of the VeVe app.
How to Buy Collectibles with OMI on Veve App?
To buy the collectibles on the platform, you get two separate wallets. One wallet contains the OMI token, which fluctuates in price, and the other wallet is where you have what is called Gems. Gems are like the stable coin versions of OMI, so 1 Gem is $1. You can send OMI into your wallet, and now you can convert that OMI into Gems, and now you have a very stable currency to buy NFTs with because all the collectibles are displayed in Gems.
What Makes OMI a Good Investment?
The cool part about OMI is that it’s a deflationary currency like Bitcoin in that there’s a finite supply of 750 billion tokens which is a lot. Still, the actual supply is a lot lower – 450 billion of that will never enter circulation because it’s reserved for buybacks – every time someone buys a collectible, the supply of OMIs gets reduced from the main wallet. Still, then a portion of it gets repurchased. But to make sure they don’t run out of tokens just burning them out of existence, they have a fascinating mathematical solution. Because anytime you buy something with OMI, an equal amount gets removed from the system, but then they add a % of that purchase back into the system.
OMI Mathematical Solution
Here’s the formula:
Buy-back = ((Gem Sales/POS purchases — App Fees) — (New NFT Sales — App Fees)) + ((New NFT Sales — App Fees) *10% )
*Fees are 30% (this is not what the user pays, this is just for the buybacks)
Reasons to not buy OMI
1: OMI is still hard to buy, and the people that own it are mostly whales with a lot of money; this can swing the price a lot.
2: Veve app goes down for upgrades from time to time and is in the beta phase.
- Cannot convert money back from Gems to OMI, which means once you convert to “in-game currency,” you can’t go back to “real money” (their team is working on this)
Reasons to buy OMI
- More licenses, including Pokemon, Dragon Ball Z, Yu-Gi-Oh, etc.
- Listed on a proper exchange
This article is from Andrei Jikh youtube channel where he explains his OMI investment.
