Here’s Why We Think There’s Plenty More Run Room For OmiseGO (OMG)

OmiseGO (OMG) broke a $1 billion market capitalization yesterday. The coin is one that has garnered an incredible amount of attention over the last couple of months is almost certain to be on the radar of most reading – especially those familiar with the initial coin offering (ICO) space.

Early morning on Thursday, however, OMG has taken a bit of a hit, currently trading for just shy of $9 a piece and off highs of $10.51 overnight.

OmiseGo Chart

The correction is likely nothing more than shorter-term operators pulling profits off the table and, if this the case, it might be a nice opportunity to pick up some coins ahead of a return to the $1 billion capitalization first breached last night.

So, is this the case?

One thing is for sure, OmiseGO has an awful lot going for it. The company is, in its own words, trying to ‘Unbank the Banked’ and it’s trying to do so using the Ethereum platform and the smart contract capability platform affords applications built upon it. It’s also got Vitalik Buterin, the guy who designed and built Ethereum, as an advisor. That’s a strong associative validation.

So what exactly is OmiseGO?

At core, it’s a platform that allows retailers to accept practically any sort of payment method, be that centralized or decentralized, through a frictionless gateway. That sounds pretty jargony but when you break it down it’s really not. Decentralized payment methods are things like bitcoin, Litecoin, etc. Centralized payment methods are things like PayPal and Skrill.

Right now, for a merchant in one country to accept either a centralized or a decentralized payment from a customer that is a resident of another country, there is a large number of parties that have to interact with one another in order to ensure things run smoothly. The higher the number of parties involved in the transaction, the higher the chance that something’s going to go wrong.

With its proprietary platform, OmiseGO is trying to change this.

The idea is that the frictionless element of the transaction derives from the platform’s ability to harness smart contracts so as to ensure that everything happens seamlessly and without the necessity for intervention by a third party manual actor.

All this is great but for this idea to takeoff, is going to need some pretty large scale enterprise adoption which, as many companies have found in this space, is hard to come by.

Many companies, that is, other than OmiseGO.

The company’s platform currently allows merchants to accept payments through ALIPAY, which is one of China’s most popular online payment methods and gives merchants access to over 450 million registered Chinese consumers.

Further, there’s a trial run in place (and active right now) with none other than McDonald’s Corporation (NYSE:MCD). That’s right, the McDonald’s corporation has partnered with OmiseGO across more than 200 of its branches in Thailand to test out the payment processing facility. Specifically, the Omise platform has been chosen by McDonald’s Thailand to be its exclusive payments gateway for its website, www.mcdonalds.co.th and the McDelivery Thailand mobile app.

That’s an incredible validation for a company of this size and of this age and its the sentiment surrounding this partnership (as well as a number of other operational milestones being hit) that has driven the company’s representative coin towards its $1 billion market capitalization right now.

So where does the OMG coin come into all this?

OMG will be used to state the network and, by proxy, to process transactions in the space. As such, the more transactions that take place over the Omise network, the higher the demand for OMG and, in turn, the higher the tokens valuation.

That’s why this one’s running right now and that’s why the current correction could be a great opportunity to get in ahead of some real upside long term.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of OmiseGo

Chart courtesy of CoinMarketCap