OmiseGo (OMG) – The crypto market has dipped hard, and people are losing money in large volumes. At this point, the biggest dilemma facing investors is whether to sell and cut their losses, HODL, or pivot more to more stable coins. This is a dilemma because if you choose to cut your losses and get out of the market, you will take a serious hit to your capital, especially if you bought during the December high. On the other hand, by HODLing you will still be losing money, and you are not assured of when the market will be back. There is already a rumor spreading that Twitter is about to follow Google and Facebook, by banning all crypto related adverts. This could see the market plummet even further, sinking you deeper in losses. This leaves the third option as the most viable alternative at the moment, and that is to pivot towards stable coins.
So what exactly is a stable coin in this context? When people think of stable coins, the first thing that comes to mind is Bitcoin, Ethereum and other coins in the top five. Other’s think of Tether and NuBits, but holding those is the same as holding fiat since they are correlated to the dollar. The most stable coins at this point are low volume coins that also happen to have high potential use cases backing them up.
That’s because when a coin has low volumes, it means that the people holding it understand the project well, and are unlikely to sell in times of market turmoil. Such investors are in it for the long-run, and are not easily swayed by market noise. That’s quite different from large volume coins like Bitcoin and Ethereum that have all types of investors who flee at the slightest sign of trouble.
A good example of a stable coin is OmiseGo (OMG). At current prices, OmiseGo has a trading volume of around $43 million. That’s quite low compared to a coin like say Ethereum, which has trading volumes of slightly over $2 billion. The analogy we have described above is quite visible in the prices of these two coins. In the last week, Ethereum has dropped from over $800 to lows of around $500, and it still looks unstable.
The same cannot be said of OmiseGo. In that same period, OmiseGo has oscillated around $13 and $9 and it looks quite stable. It hasn’t shown any signs of a drastic price drop. This is an indication that there is some form of unanimity in the category of people holding OmiseGo. It is clear that a majority of them are believers in the project, and are not swayed by market news, which is good news if you want to protect your capital.
On top of that, OmiseGo OMG happens to be a very strong project, which gives it a serious value anchor in the market. For instance, OmiseGo aims to bank the unbanked in Southeast Asia, a huge opportunity in the financial services industry. As the OmiseGo project gets adopted, you can expect its value to increase exponentially once the bear market comes to an end.