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Genesis Block Ventures (GBV) announced the acquisition of OMG Network, which helps accelerate transactions and reduce fees on the Ethereum blockchain by handling off-chain transactions, triggering a double-digit rally in the network’s OMG token.
“Through this acquisition, GBV is committed to leveraging its network strength to drive accelerated growth of the OMG network and further enhance the adoption of the OMG blockchain in Asia and beyond,” GBV, an investment arm of OTC trading based a Hong Kong company Genesis Block said in its announcement on Friday.
GBV claimed to have been an active participant in this year’s decentralized finance revolution and has partnered with major exchanges such as Binance and FTX. The over-the-counter (OTC) trading firm aims to facilitate a smooth transition of OMG Network’s team and operations from SYNQA (OMG Network was founded as a SYNQA subsidiary in 2017) to GBV, in an effort to minimize the impact of the acquisition on the token price.
Regardless, OMG’s price jumped on the news, rising more than 18% from $ 3.74 to $ 4.41 during Asian trading hours.
“OMG grew overnight in response to news that the Hong Kong-based OTC trading firm is about to acquire OMG Network.” Denis Vinokourov, head of research at London-based prime Brokerage Bequant, told CoinDesk in a Telegram chat. “This is a particularly noteworthy development given the recent launch of Ethereum’s 2.0 Beacon Chain, which aims to address various scaling problems, while Optimistic and ZK-Rollup are also gaining ground.”
OMG rallied over 200% in August, as DeFi-led congestion on the Ethereum blockchain bode well for the OMG network.
