The Hong Kong-based over-the-counter trading platform Genesis Block has big plans for its newly acquired Ethereum Layer 2 OMG Network.
On Dec. 3, the venture subsidiary of Hong Kong-based Genesis Block Ventures (GBV) announced that it would be taking over the Ethereum-based Plasma scaling platform OMG Network.
Formerly known as OmiseGO, the project is a trustless, non-custodial, Layer-2 scaling solution for transferring value on Ethereum.
Genesis Block Ventures said it intends to accelerate the development of the OMG Network and foster partnerships throughout the Asian region.
GBV added that it has already been deeply engaged with the DeFi sector this year, and has built relationships with leading exchanges Binance and FTX:
“Following the acquisition, a number of integrations and partnerships are in the works, GBV and OMG will work closely together to leverage resources and explore new directions, such as building lending and trading platforms, to achieve DeFi’s massive adoption and growth potential.”
What’s in Store for OMG?
In a Boxmining live stream on Dec. 7, Genesis Block Venture partner Clement Ip outlined ‘huge opportunities ahead’ for the OMG Network.
Ip stated that GBV was set to invest in ‘new and exciting projects’ such as OMG.
He added that during the DeFi boom, the fees were too high to make transactions on Ethereum economically viable, and many were simply saying that ETH was ‘broken.’
Ip is adamant that ETH is here to stay, but that there needs to be several layers of scaling for DeFi to expand beyond its current state.
The firm has ambitious plans to expand the number of cryptocurrency ATMs across Asia. In addition to ATMs, an automated market maker facilitated by low cost, high-speed transactions on the OMG Network is in the works.
Ip asserted that OMG integration and wider adoption is the long-term goal, “Because we’re bullish on ETH, we know gas fees will go sky high.”
OMG Price Outlook
The network’s native token, OMG, spiked on Dec. 4 following the announcement, causing OMG to hit a three-month high of just below $4.50. It has since retreated back to $3.70 and remains within a sideways channel that has formed over the past three months.
OMG surged in mid-August following the news that it would be used by Tether to facilitate faster and more cost-efficient deposits and withdrawals of USDT.
Like most 2017-era altcoins though, OMG is still way down from its all-time high of over $25 which came in January 2018. The takeover and new focus on DeFi has renewed hopes for many OMG holders.
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