The latest cryptocurrency news show that the recent rise in the price of OMG was actually an OmiseGo pump and dump scheme – bringing controversy back to the exchange Coinbase after the altcoin surged by 200% in 15 minutes. After the rise, OMG crashed immediately, which raised a lot of eyebrows and shocked many on the market.
This is currently one of the topics of interest on social media. The Coinbase listing of OmiseGO (OMG), which is the 34th largest cryptocurrency by market cap, also sparked a lot of familiar accusations of insider trading.
OmiseGO (OMG) is launching at https://t.co/bCG11KMQ6s and in the iOS and Android apps within the next 15 minutes. You may need to update your app to properly buy, sell, convert, send, receive, or store OMG. We will update when OMG is fully live. https://t.co/StFZX4AzYf
— Coinbase (@coinbase) May 21, 2020
As soon as the coin launched, the trading was marked by OMG rising by 200% and the premium at one point reached 82% on five minute closing prices. The OmiseGo pump and dump scheme was then something many speculated.
According to Matt Casto who is an analyst at the cryptocurrency trading group CMT Digital, the altcoin news with the OMG rise showed that the situation is “ridiculous” – he argued that the premium was creating “new lifetime bagholders.”
This is ridiculous. This morning OMG traded at $3.90 on Coinbase while trading at $2.14 on Binance (82.34% premium on 5 min closing prices). New lifetime bagholders being created rn. https://t.co/yFyw55co7B pic.twitter.com/WJ4TbeEMPz
— Matt Casto (@mcasto_) May 22, 2020
One 15-minute period further saw a 200% increase in the price of OmiseGo (OMG) after which the altcoin suddenly crashed. All of this shows that Coinbase has a history of dubious launches and has yet to provide a public explanation and comment on the criticism which for longtime traders is going to be reminiscent of previous altcoin launches by the same exchange.
In history, one of the most notorious case similar to this OmiseGo pump and dump was the support of Bitcoin Cash (BCH), which began climbing in price even before any public announcement of the exchange was made. This led to accusations of insider trading and even an investigation by Coinbase itself, which found no evidence of foul play.
This time, however, the commentators noted that the OMG cryptocurrency likewise began its surge before an official announcement was made – as far as seven days before that. “When will accountability be held? Tell me it is just coincidence or is it insider trading,” Twitter account Crypto Pilot responded.
Right now, OmiseGo (OMG) is trading at $1.89 with a small positive surge on the day and a market cap of $264 million. The volume of trading has been $772 million over the past 24 hours.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]