Another week, another crypto surging thanks to a topical name. This week, with a new Covid-19 variant in the news, the lucky winner is the Omicron (CCC:OMIC-USD) token. The Omicron crypto has seen some absolutely massive gains over recent days, but does this make it a must-buy digital currency? Some are drawing comparisons between the token’s growth and that of another problematic cryptocurrency from this autumn. Others are saying the gains speak for themselves, and the money speaks loudly.
A new coronavirus variant of note is popping up. Called the omicron variant, the newly mutated form of the virus is popping up in southern Africa and raising concerns about worldwide transmission. Cities like New York are reimplementing measures requiring masks indoors, and President Joe Biden’s administration is meeting with vaccine manufacturers and health agency representatives to develop plans in case omicron makes its way to U.S. soil.
As of yet, the Biden administration and other health officials are calling the variant “a cause for concern, not a cause for panic.” Even still, with the world far removed from the pre-pandemic reality, the public is latching onto the news with fervor. As such, the Omicron crypto continues a trend of topically named digital currencies soaring.
Omicron Crypto Gets a Boost From Covid-19 Variant
People love to buy cryptos with funny or topical names. The pupcoin bonanza that broke out over the summer came thanks to Dogecoin’s (CCC:DOGE-USD) boom. Elon Musk has spawned dozens of currencies launched in ode to his many tweets. And most recently, users found themselves scammed out of millions as the Squid Game (CCC:SQUID-USD) token turned out to be a one-sided game. It’s no wonder then that the Omicron crypto is seeing investor love now.
Friday saw initial news about the Omicron variant break. Immediately, investors sought out an appropriately named cryptocurrency to buy before it soared. Luckily enough, Omicron happened to be that currency. It is a relatively fresh token, launched in early November. It is branded as a decentralized autonomous organization (DAO) token, giving holders voting rights on changes to the Arbitrum network.
Regardless of what it is or what it does, it’s obvious that buyers now only care about the name. Since Omicron variant news first made waves, trading volume has exploded. Nov. 26,saw only $2,200 in OMIC trade hands. On Nov. 27, that trading volume boomed to $219,000. Today, trading volume is increasing even more, up to more than $800,000.
This trading influx is translating to some massive gains. In just a couple of days, OMIC rocketed from a price of $76 to an all-time high of nearly $700 thanks to gains of over 1,000%.
Should You Invest in the Omicron Crypto?
CoinMarketCap, the leading cryptocurrency data aggregator, is posting a notice on its blog today about the circumstances surrounding the Omicron crypto’s boom. The site draws comparisons between OMIC and SQUID, telling investors to exercise caution when investing in these cryptos on name alone.
Is Omicron a crypto you want to invest in for its fundamentals? Probably not. But is it a crypto that has millionaire-maker potential for those trying to cash out on its name? Once again, probably not. Unless you were already holding massive amounts of OMIC prior to the price spike, you’re probably out of luck. The token is already down 25% today, even with the influx of trading volume. Still, if you want to put some cash on the line, SushiSwap (CCC:SUSHI-USD) is the exchange which is seeing the majority of OMIC trading.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.