Vitalik Buterin Favorite Token Model is OMG (OmiseGO)

Vitalik Buterin explained why OmiseGO token OMG is his favorite model. Let’s understand potential of OMG/USD in the medium term.

Recently, Ethereum’s founder Vitalik Buterin took out to twitter and explained why OMG token model is his favorite. He laid a couple of important points, which are worth taking account for the token’s growth in the long-term.

All this was trending today along with a sharp rise in ETH/USD. There were solid gains in Ether’s price as it moved above the $520.00 level and traded to a new all-time high above $530.00.

Why OMG Token Model is Great?

Here are the important points laid out by Vitalik Buterin in an explanation with the help of a tweet.

First – Not a medium-of-exchange token since it enables real-time, peer-to-peer value exchange.

Second – Clear valuation model, which means expected discounted future transaction fees minus node operation cost.

Third – It requires a running node to get returns, not passive income. Therefore, OMG token is more legally sustainable and defensible.

Right now my favorite token model is OMG-style staking tokens. Reasons:

* Not a medium-of-exchange token
* Clear valuation model (expected discounted future tx fees minus node operation cost)
* Requires running node to get returns, not passive income (so more legally defensible)

— Vitalik Buterin (@VitalikButerin) December 12, 2017

There is no doubt OMG token has a great potential in the long term. It enables anyone to do financial transactions like payments, payroll processing, remittances, B2B commerce, loyalty programs and trading.

OMG/USD Analysis

In the last analysis, we discussed a long term outlook for OMG/USD and it seems like Vitalik Buterin’s faith in it could do wonders for the project and OmiseGO’s token price.

The price is currently trading around $9.50 and was up by around 5% after his tweet. In the last analysis, I pointed out a major break in OMG, which is now real.

Therefore, there is a lot of scope of more gains in OMG/USD. Once the price settles above $10.00, it can easily rise by 20-30% in the next few months.

However, we need to keep a close watch on fundamentals and make sure the network’s growth and roadmap is on track. Moreover, Ethereum’s growth is also the key. Today, ETH/USD rose to a new all-time high above $530.00 and it looks set for more gains in the near term.

Trade safe traders and stay away from hype and false rumors while trading.

Cheers!