Why OmiseGO (OMG) has much more potential for growth than you might think - Dividends will be higher than most realize

in #omisego7 years ago (edited)


You may have caught wind of OmiseGO, but not many people realize why holding the OMG tokens is much more valuable than current prices.

As you probably know OMG token holders will receive a sort of dividend from staking their coins, which will be paid out of the transaction fees made on the platform. Whilst this may seem great and obvious at first, most people seem to have a very limited view on how many transactions there will be.

LET'S START WITH THE OBVIOUS
OmiseGO will have a Cryptocurreny exchange. Currently Bittrex does about $500 million transaction volume a day. A fresh and new exchange by comparison, Binance, does $100 million volume a day only a few weeks after it's inception. Assuming the OmiseGo Exchange will do the same transaction volume as Binance and (theoretically) charges a 0.1% fee, this means there is $100K in the pot for holders each day which amounts to $36500000 a year. Divide that by the amount of tokens (140 million) and the result is approximately $0.26 return per token, at today's prices and assuming the OMG exchange is 'only' as succesful as Binance. Should the OMG exchange volume be similar to, for example, Bittrex, you can multiply the dividends by 5. That would come at around $1.30 per token, or in percentages about 19% dividends a year.

Now, if you are betting on the market becoming bigger, and trade volumes increasing, the ROI would be even faster because trade volumes will likely be much higher than they are today. And then of course you have to factor in that the price of the OMG token will probably rise, so rewards will too.

BUT...

What most people don't take into consideration when doing their calculations on the profitability of OMG tokens is the fact you don't just get a fee for each trade made on their Decentralized Exchange but rather: You get a fee for every transaction on the blockchain network.

What this essentially means is that not only do you get the fees from the exchange, but also every time somebody purchases something online with OMG tokens (or with a TenX card), or transfers them to another wallet, or shapeshifts them. For every movement on the network, a small fee is paid that OMG holders collect.

AND

Omise already has a huge customer base in the millions (and I believe I read they recently acquired a payment processor that has 500 million customers). Whilst nothing is certain, it sure does seem like they are setting up to switch the backend of their systems to the new OMG ecosystem. If this is true, then all of existing Omise customers who make a purchase anywhere in any shop during their daily lives, will pay a small transaction fee too which OMG token holders collect. With the potential of seeing millions of daily spenders added to the already huge pool of transactions that will be made, this truly skyrockets the potential dividends of holding the OMG token.

To make a long story short: If you think OmiseGo has boomed and won't go any further, I believe you are sorely mistaken. While holding TenX is like getting dividends for every Visacard payment, and holding WCX or SAFEX might be getting dividends for every exchange-transaction, OmiseGo offers both of those benefits as well as a huge customer base ready for switching over to the network. It's a three-in-one. The OMG network is setting itself up to be one of the most heavily used blockchains which will transact huge daily transaction volumes, and this is why I believe the dividends from OMG tokens will far exceed those of other tokens.

Disclaimer: The 0.1% transaction fee is speculative and as far as I know no details regarding the specific dividends have been made known yet. Furthermore, there is a chance not 100% of the fees will be paid out in dividends. Some of it could go towards other things.

I have few followers and my ability to get news out there is limited, so if you like this post or OmiseGo please consider Resteeming and/or upvoting, I appreciate it a lot!

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Thank you for this insightful post about OMG. I knew there was a lot of support behind it but hadn't really thought about how much could potentially come out of these transaction fees as passive income. My attitude toward OMG just went from good to better! Resteeming!

You're welcome! I hold several dividend coins, and I consider OMG to have the highest dividend-per-cost at this moment. So if you have OMG I would definitely say HODL!

Hey Pandorasbox, what other coins are you aware of that have great potential in dividends? I'm strictly looking for these types of coins because passive income is what I'm after. I'm aware of SAFEX and OMG, do you think WCX has the same potential?

NEO pays out in GAS. It would have been better if you got in earlier, but I think NEO will still go up quite a bit. That, together with OMG are my 'main' dividend coins which I expect the most from. TenX also pays dividends from the transaction fees made by paying with the card. Currently is very popular too. Not sure if it will go up or down but it's almost at the point where it will move (I'm hoping up, of course).

SAFEX I don't get into. I listened to an interview, and I wasn't convinced about their professionality so I sold mine asap again. Maybe it will work, I dunno, I switched to OMG as it seemed far more promising.

WCX seems interesting. I don't know much about it, but you can get free coins here: https://wcex.co/
So go get some :) Who knows. The idea sounds promising, unsure if they will deliver. Free coins, always good though. I may invest if it hits market place, depending on the situation then and wether or not more info is made known.

Other than the ones I mentioned above the only other dividend paying crypto's that I know of are the ones where you need to set up a Masternode , usually involving locking up 1000 coins or even more, which makes it very expensive to do so. These are: Dash, Pivx, Stratis. Without setting up a masternode you earn no dividends.

IMO OmiseGO has the highest dividend potential because of the large volume they will be handling. NEO has a high potential, because the price of GAS is going to be a lot higher than today. The rest, I am not sure how profitable the dividends will turn out to be. Generally, the developers are not interesting in creating shitty dividends (otherwise nobody wants to own them) so the newer coins may end up paying out more in an attempt to increase the demand for the coins. Just stay informed and on the lookout!

Thank you for the good info

I have been hearing a lot about OMG recently.
Any pointers on how to start acquiring some of it?

It's tradeable on Bittrex, that's where I got mine. If you want some, best be quick.. Looking at the charts, I have this feeling it's about to go up any time now.

This is a very good post about OmiseGo, i didnt know about all this info, make me wanna invest even more!
I linked it in my post https://steemit.com/cryptocurrency/@johnycrypto/my-top-3-cheap-medium-long-term-coins-with-99-profit-guaranteed

Oh wow, thanks so much !! As a struggling Steemian, I really appreciate that, I upvoted and gave you a follow! Thanks again

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Thanks for sharing!

So you could just keep on Ledger or myetherwallet, and dividends will be paid out to the address they’re held on?

do i just hold it in a particular wallet or can i hold anywhere? cold storage? on any exchange?

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