/biz/ - Business & Finance

Tether has more 24hr volume than bitcoin. If they get the ethereum portion (lions share) of tether on OMG you’re looking at some seriously underpriced OMG right now, by a factor of 1000

How do we know if all tether transactions will be on OMG? In another 3 years when the network goes to main net a lot might change. And what if it's just a PR thing like EOS who also partnered with tether for the same thing? Buying 2017 dinosaur coins is seriously risky

>>19541440
look at gas spent on tx, not volume you fish. tether pays $1.8M in fees per month as of now, if omg fees are 66% cheaper, then only around $600k would be distributed among omg holders. this would mean 1c per month per coin if 60M omg are staked.
this is all assuming 100% of tether txs will be over omg lol

source: eth gas station

>>19541823
This kills the OMG. I'm too dumb to do the math myself but fundamentally this is the problem. In 2017 fees and scalability were big problems, and now we are getting solutions that don't require a token.

>>19541708
Because they have a deal with Bitfinex and tether, owned by the same people. It saves bitfinex a lot of money on fees and allows tether to push stable coin competition out of the way.

>3 years
So what if it’s not needed in 3 years? Just 1 year of where this coin could go will give you great gains. I’d you need to rebalance in a year who gives a shit. But honestly, I don’t think it will go anywhere. First mover advantage is huge in crypto. Look at ETH, do you think they’re worried about cardano or EOS in 3 years time?

To my mind, ETH will need both ETH 2.0 and OMG to facilitate the billions of transactions per second that proper enterprise adoption will require.

>>19541918
That's about a 7% ROI at the current price... His pessimistic calculation with JUST tether fees is already better than owning coca cola stocks, for fuck sake. You'd have to be a retard not to see how undervalued this project is.

>>19542044
how is a 100% tether-to-OMG transfer pessimistic?
also tether is by far the biggest consumer, long tail op erc20 combined might not even compare. 50% of tether transitioning onto OMG and 80% of all erc20 (never gonna happen). also dexes are already integrating tokenless zk rollups as scaling solution.
7% roi is abysmal considering crypto's volatile nature and performance non-guarantee. pure opportunity cost considering the space we're in

>>19541823
oh yeah and lets forget about the usdc and pax and dai transactions that will have to move over
coinbase jews everyone they arent going to get outjewed any chance to save fees they will
plus true mobile network which is the biggest telecom in thailand is moving over
coupled with 7/11 owned by thai company that is a seed investor in omise
literally all rice paddy transactions are moving over within the next 6-18 months.
calculate that
stay poor

>>19542256
I'm sure I've read something along those lines 2 years ago

>>19541823
Even in your scenario, OMG would be undervalued. That’s a 7.5% annual return. That’s without factoring in speculative growth. The real benefit of getting tether on the blockchain is freeing up transaction speeds to allow tether to move more and gain more volume. Remember, at the moment ANY erc20 token can move across the OMG network for 1/3 the fee. Once exchanges see bitfinex saving gut loads of money moving tether across it, lots of erc20 transactions will flow. It’s hard to say how many, but it’s potentially a lot of volume.

Then you need to add things like those stupid games and dApps that come onto ethereum. Suddenly with OMG Network, they won’t be hampered by 14tps and that market will explode. What you’re seeing now with 1000s of erc20 tokens will also happen with smart contract games and dApps. The potential transaction volume once that starts going is untold, enough to fill the 1000s tps.

>>19541918
Nope, those are STILL problems and ETH devs say they won’t be ready for at least 2 years. More than 1 kind of scaling will be needed for ETH. If ETH really wants to meet the expectations of big enterprise and fulfil its potential, it needs billions of tps with multiple scaling solutions. Once the layer 1 chain scales, layer 2 scales with it. That’s a couple of years away now, but it will still be needed.

>>19542209
It’s pessimistic because everything on ETH is hampered by the 14tps bottleneck. There are quite literally only a max number of transactions in every month possible, and those are being hit right now. Now that the ceiling is lifted to 1000s of tps, you will naturally see more activity of erc20 and especially tether. Centralised exchanges will be able to take advantage of this and remove much of the cost of their internalised infrastructure to deal with any ethereum contracts. And if you’re going to make the point that exchanges could use something else like rollups, explain why bitfinex and tether are choosing to use OMG Network, hint: because it’s made from more proven and trusted tech than zk rollups!

>>19542334
de-clogging would also mean cheaper eth fees, ergo even cheaper OMG fees. I disagree that 7.5% annual return (even 10%) is sufficient but I guess that's just my opinion.
>Once exchanges see bitfinex saving gut loads of money moving tether across it
I agree
>lots of erc20 transactions will flow. It’s hard to say how many, but it’s potentially a lot of volume
I dont't think so. tether is made to be sent around as it's mainly used by arbitrators and chinese-russian mobs. I dont see close to a similar demand for ANY erc20 token with the exception of DAI as un-censorable tether sunbstitue (not addition)
>Then you need to add things like those stupid games and dApps that come onto ethereum.
I prefer not to bet on games pushing adoption, too many other interesting projects I'd rather place my money into. Dapps, maybe.
>>19542515
>And if you’re going to make the point that exchanges could use something else like rollups, explain why bitfinex and tether are choosing to use OMG Network, hint: because it’s made from more proven and trusted tech than zk rollups!
easier to implement on top their existing infrastructure or a vested interest? Loopring has done it

At the moment the 100% Tether volume is already priced in. OMG pumped good in the past, which could be repeated. But it's def not a x100 GEM nobody knows about. Staking will be the main driver for the next bullrun, that's why it got listed on Coinbase already. Only thing which might not be priced in is if reddit needs scaling of there ETH wallets, but no clue if theres demand for it atm

>>19542997
Declogging would mean slightly cheaper fees for ETH and OMG, but more importantly this would pave the way for more transactions, which is ideally what we want in order to facilitate further adoption.

Games are not important for adoption I agree, but they provide huge quantities of transactions. ETH has never been busier than when a stupid game comes out and clogs it. dApps could too, but either way means more potential transactions for OMG Network.

> easier to implement on top their existing infrastructure or a vested interest? Loopring has done it
Interestingly, the EEA has just this minute published their own standards for enterprise ethereum and they state layer 2 on chain solutions like plasma are preferable. They do mention zk proofs/rollups, but only as possible future methods to assist with scaling. I suspect this because there is not enough reliability built up around them yet. I think people seriously underestimate the importance of first mover advantage and a reliable record in crypto. Once the ball starts rolling with OMG Networks particular brand of layer 2 scaling, it gets increasingly more tempting to use it as it builds up a reliable history. You’re talking about building the bedrock of a multi trillion dollar dEconomy and it needs to be reliable.

>>19542997
>>19543462
Here’s the EEA standards they published:

https://entethalliance.org/wp-content/uploads/2020/06/EEA_Enterprise_Ethereum_Chain_Specification_V1_2800229.pdf

>>19543201
>100% tether volume is already priced in
It isn’t. NEO had annual returns of less than 1% when staking started. If OMG was priced at that it would be $7.50. Crypto staking returns are often lower than traditional dividends because there’s usually so much speculation about where the adoption could be taken from there. That hasn’t happened yet with OMG because of their previous reputation and because tether hasn’t started going live yet. Once it does, the price will not be able to hide from the reality of the working product.

>>19543495
thx for the link, I'll take a look
these adversarial shills are why I'll love /biz/ forever

>>19541823
better throughput=more useful=more opportunity.
it's the opportunity cost that reks you in crypto.

>>19544033
True, every time a game runs on ETH the network slows to a halt. I can’t wait til 1 fucking stupid game doesn’t wreck the whole network