- OMG token saw a bullish rally on Nov 11 following the news of BOBA airdrop
- The OMG Coin Price fell by nearly 30% in just minutes
- The spot prices and PERPs caught up with spot falling to PERP levels
New Delhi (CoinChapter.com): OMG Network transitioned into the OMG Foundation after announcing the release of the BOBA airdrop, a new governance token that would support the platform. This highly anticipated airdrop caused a rattle in the crypto community as the currency prices rose by more than 14% on Nov 11.
The prices opened at $15.2 and reached a daily high of $19.7 on Nov 11. However, this bullish was eclipsed by today’s bearish movement of the prices. The OMG token opened the prices today at $17.4 and dropped as low as $12.2, completing a drop of around 30%.
Popular crypto analyst ‘Pentoshi’ tweeted this turn of events for OMG token, looking for a possible trade. “Don’t know if this is wise or not, but I’ll play a 35% drop for some mean reversion,” said the trader who bought 100 tokens. “Either way happy I stayed out until now,” he added.
OMG Coin Prices Affected By BOBA airdrop
The huge surge in OMG prices yesterday resulted from the air of excitement surrounding the announcement of the BOBA airdrop. Every holder of the token will receive the BOBA token on a 1:1 basis, i.e., for every OMG that one owns, they will get one BOBA from the airdrop.
A snapshot of every wallet across major exchanges like Binance, Bitfinex, and FTX was taken on the “first Ethereum (L1) block with a timestamp greater than or equal to 2021/11/12 00:00 AM (UTC).” The actual drop will take place a week from this snapshot, on Nov 19.
There was quite a commotion among the investors, which resulted in a rift between the spot and PERP prices of the OMG token. It seems that investors were looking to long the spot, also hedging their tokens to be on the safer side. Although, according to the rules, the Margin longs or Margin shorts in OMG/XXX and hedged tokens won’t be eligible for the BOBA airdrop.
The spot price for the token was $18.5 at 4:50 PM (UTC), while the PERP prices were at $16.18 at the same duration. The PERPs were trading at a maximum discount of 20% in the same duration. This rift finally resolved itself as the spot prices dropped to the levels of the PERPs.