Omni Network Token Plunges 55% Post-Airdrop, Fake Token Scam Unravels

In a dramatic turn of events, the value of Omni Network’s token has plummeted by half within a mere 18 hours following its distribution to test net users and select NFT holders.

The ERC-20 token, OMNI, associated with Omni Network, saw a staggering 55% decline in value just 18 hours after its airdrop, resulting in a significant erosion of its market capitalization.

Adding to the turmoil, a counterfeit token masquerading under the same name has executed an exit scam, leading to a complete loss of value for unsuspecting investors.

Omni Network, a layer-1 testnet blockchain designed to facilitate connectivity between Ethereum rollups, distributed 3 million OMNI tokens—equivalent to 3% of its total token supply—among its community contributors on April 17, commencing at 11 am UTC. At the onset, OMNI boasted a market cap of $560 million.

In a swift and unsettling turn of events, OMNI’s price plummeted by nearly 30% within just thirty minutes, dropping from $53.80 to below $39, and subsequently continued its downward trajectory to hover around $24—a staggering decline exceeding 55%.

Presently, the token commands a market cap of $267.5 million, translating to a fully diluted valuation of approximately $2.57 billion, as reported by CoinGecko.

The airdrop allocated 50% of the total tokens, totaling 1.5 million OMNI, to early testnet users, developers, and active community members, with a combined value estimated at around $36.2 million. Eligibility for the airdrop was determined based on a snapshot taken on April 3.

Further token allocations were distributed among EigenLayer restakers and select NFT projects, including Pudgy Penguins, among others.

Additionally, Omni Network disclosed plans to reserve 9.27 million OMNI tokens, representing 9.27% of the total supply, for public launch activities and liquidity provision.

Moreover, a significant portion of OMNI tokens—29.5 million, accounting for 29.5% of the total supply—has been earmarked for ecosystem development initiatives, with initial distributions managed by the Omni Foundation, the blockchain’s supporting entity.

Investors and advisors were also allocated a substantial share of OMNI tokens, subject to staggered release schedules over several years, with the aim of incentivizing long-term commitment and participation in the project.

Amidst these developments, reports emerged of scammers capitalizing on the OMNI token’s popularity by deploying a fraudulent version under the same ticker symbol. This sham token swiftly executed an exit scam, liquidating over 1.7 quadrillion tokens for approximately 132 Wrapped Ether (WETH), resulting in a complete loss of value for investors.