Why I think OmiseGO (OMG) is an Undervalued Investment Option
Disclaimer: I am not associated with OmiseGO in any way. I own a very small number of tokens, but I am writing this only to share my perspective. On multiple occasions I have had the opportunity to invest early on, but didn’t do so either because I didn’t understand the technology or I wasn’t convinced of it’s potential. Ethereum was one of those things. Big mistake. Though it is purely my own opinion, I’m writing this to convince others that OmiseGO is a solid investment option. My aim is to provide the reasons supporting this belief so that if you decide not to invest in OmiseGO then at least it is an informed choice. Most importantly, please do your own research! I’ve done my best to be accurate here, but please check for yourself before making investment decisions. All investments in cryptocurrency are inherently volatile and risky, but with good potential for return.
OmiseGO is a Southeast Asia-based company creating an e-wallet that will make transfer of assets and currencies possible. Merchants and users of the wallet can transfer whatever asset or currency they desire. For example, you could use your ethereum, bitcoin, international fiat, or even your airline points to buy groceries using the e-wallet app on your mobile phone. Transfers can happen across borders, or even while traveling abroad. Unlike Western Union or PayPal for example, the fees are almost negligible, and the transfer is instant. Because it’s based on a block chain, there are no intermediary banks necessary and users don’t need bank accounts to access those funds. This is especially good for migrant workers who send money home and often don’t have bank accounts and are forced to use expensive wire services instead. Source
- Proven and experienced. Omise was started in 2013 and has offices in Bangkok, Tokyo, Jakarta, and Singapore. They transfer money between businesses and individuals, and as of March 2017 handle roughly 500 million USD worth of transactions per day. Yes, PER DAY.
- MASSIVELY undervalued. With a current market cap of 288 million (versus 25 billion for Ethereum) and ranked at #22 among cryptocurrency coins. This means there is much room for growth, and potential return for investors.
- OmiseGO does not currently have it’s own functioning block chain or e-wallet, but it will before the end of 2017. If this happens as expected, it means that the next few months will see some growth for omiseGO. This ties in with the previous point that there is much room for growth, which may happen late 2017 and into early 2018.
- Omise has heavily funded ethereum development directly. As a result, both founders of ethereum (Vitalik Buterin and Gavin Woods) are direct consultants for omiseGO.
Vitalik with sticker of OmiseGO on laptop Vitalik at OmiseGO meeting
- OmiseGO was recently featured in an article by BangkokPost. This is good for publicity, growth, and to me is a sign of increasing awareness and credibility.
- Omise has just recently acquired one of the three largest payment service providers in Thailand, Paysbuy, a licensed by the Bank of Thailand operator of e-money business, and accredited with Trustmark (DBD Verified) by the Ministry of Commerce. This provides a very well established source of active users.
- Jun Hasegawa, Omise’s CEO, revealed just recently that McDonald’s Thailand (over 240 locations), will be using OmiseGo’s payment channel Also quoting Jun “we’re launching OmiseGO to support Omise Payments and all existing stakeholders, including our existing and future merchants, such as McDonald’s in other countries in Asia – McDonald’s Thailand is just the start. Through OmiseGO, all Omise merchants will be able to seamlessly accept payments in multiple currencies, including ETH or BTC or other cryptos, without needing to know what their client is paying in.”
- Holders of OMG will also generate an extra income, and quoting Jun : “OMG is a token that secures a public permissionless POS network, whose primary use case is to host a decentralised exchange for digital fiat and crypto alike. It is backed by significant mainstream financial firms in Asia who will use it as the backend for existing digital wallets – think Venmo, Google Wallet, WeChat Pay (examples of digital wallets only) – and for hosting digital fiat tokens for their existing merchant payment network. OMG holders can use OMG to validate the network. If they validate a block correctly, they get paid the transaction fees from that block (but if they validate incorrectly, they get punished). Like mining but without the need for hardware. To me this is also a good motivation for people to hold onto their OmiseGO rather than sell them, thereby providing stability in value.
- OmiseGO are working on implementation outside of Southeast Asia as well: Europe and Africa are currently in their cross-hairs.
- OmiseGO will support Ethereum scaling and provide a decentralised exchange, that is not only totally decentralised but also has correct incentive alignment with Ethereum (because it uses the Ethereum mainnet for economic security, OMG will not siphon off value from ETH like most other tokens have the potential to, but will rather support it).
With all of that said, I have some concerns.
- A major challenge seems to be getting merchants to accept OmiseGO. It is encouraging though that McDonalds may already be getting on board. Even with merchants not adopting OmiseGO then it is still very useful to transfer funds between users and across borders. Though it is not entirely clear to me how these funds can be used without either a bank account to withdraw the fiat or a merchant that will accept it.
- It seems a bit ambitious to “unbank the banked”. Banks are strongly rooted institutions, and this system would circumvent their services. It seems feasible, but they might encounter friction along the way. With that said, Omise has been pretty successful so far despite this!
- The Reddit and Twitter communities seem much smaller and less engaged than, for example, either Ethereum or Neo. This may just be a product of OmiseGO lacking a bit in public awareness and something I’m sure will improve with time.
For more reading take a look at the white paper!
- Final thought #1 (for completeness sake!): OMG can be stored in MyEtherWallet (MEW)
- Final thought #2: OMG can currently be bought on many major exchanges, including Bittrex and Bitfinex
PLEASE correct me on anything I’ve written here (with sources of information too to support the correction) and PLEASE add any perspectives or points I missed in the comments (again, with sources of information)
Tips / Donations always appreciated and welcome 🙂
OmiseGO Wallet: 0x3346b3a4ebd98b1c5a8ab93ed0de6ac1253f51dd
Bitcoin Wallet: 1HCVqrRSPHwA3HeGzc6MRWCmDw5o3jgRDG
Litecoin Wallet: LbC77L6g7sb8bm8QHqeYZgYw4T1QqG5kUe
Ethereum Wallet: 0x8f30a230f0eb03f23916d7cb069821b6052ed86b