In the aftermath of its airdrop, the value of Omni Network's ERC-20 token OMNI experienced a sharp decline, plummeting over 55% within approximately 18 hours and erasing more than half of its market capitalization. Adding to the tumult, a counterfeit token bearing the same name recently emerged and swiftly plummeted by 100% in value. The token airdrop, initiated by the first-layer testnet blockchain linked to the Ethereum rollup, commenced the distribution of 3 million OMNI tokens (equivalent to 3% of its total supply) to community contributors at 11 am UTC on April 17.
Following the airdrop, OMNI's market value experienced a significant downturn, with its price dropping nearly 30% from $53.80 to below $39 within half an hour. The downward trend persisted, culminating in a decline to approximately $24, marking a total decrease of over 55%. Presently, CoinGecko reports the market capitalization of OMNI at $267.5 million, with a fully diluted valuation estimated at around $2.57 billion.
The distribution of OMNI tokens during the airdrop allocated 50% of the latest batch (1.5 million OMNI) to early testnet users, builders, and community participants, equating to a value of approximately $36.2 million. Eligibility for the airdrop was determined based on a snapshot taken on April 3. The remaining tokens were distributed among EigenLayer retriers and various non-fungible token (NFT) projects, including Pudgy Penguins and others.
Omni Network had previously announced that 9.27 million OMNI tokens, representing 9.27% of the total supply, would be reserved for a public offering token aimed at "issuance pools and liquidity." Furthermore, a significant portion of OMNI tokens—29.5 million, constituting 29.5% of its supply—will be allocated for "ecosystem development" under the discretion of the blockchain's supporting entity, the Omni Foundation. Additionally, approximately a quarter of the total OMNI tokens (23.3 million) have been designated for investors and advisors.
However, amidst these developments, the emergence of counterfeit OMNI tokens has sparked concerns, with perpetrators orchestrating an exit scam worth $398,000. Blockchain security firm PeckShield revealed that the fake token's value plummeted by 100% after a smart contract was deployed, enabling the exchange of over 1.7 quadrillion tokens for 132 Wrapped Ether (WETH).
