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The OMG Network token crashed 25% following Boba Network’s announcement that it had taken its airdrop snapshot. 

OMG Holders Dump Tokens

Airdrop euphoria has backfired for OMG token holders.

Boba Network announced that it had taken the planned OMG token holder snapshot Thursday night, qualifying everyone holding OMG tokens for an airdrop of BOBA governance tokens on Nov. 19.

However, it appears that many were holding OMG tokens solely to qualify for the airdrop, leading to a substantial sell-off after the snapshot was taken. Minutes after the Boba Network tweeted that it had taken the snapshot, the OMG token plummeted 25%.

OMG/USD chart. Source: CoinGecko

Boba Network is an Ethereum Layer 2 solution created by Enya in collaboration with OMG Network. The network uses Optimistic Rollups to reduce gas fees while maintaining Ethereum’s security and decentralization.

In September, the Boba network announced that it would be decentralizing by airdropping BOBA governance tokens to all users who had transferred OMG tokens to Boba Network using its dedicated bridge or were holding OMG tokens in a non-custodial wallet or through certain centralized exchanges. At the time of the announcement, the exact date for the airdrop snapshot was not revealed, only that it would take place in the near future. As Boba Network announced its airdrop ahead of time, it incentivized holding OMG tokens to qualify for the BOBA allocation. 

Over the past year, several major projects have airdropped tokens to early users. In August, trading platform dYdX announced an airdrop to all addresses that had used the protocol before a predetermined date. More recently, Ethereum Name Service airdropped its governance tokens to those who had registered a “.eth” domain name through the application. Users who held onto their ENS saw their holdings jump in value as the token rallied above $80; it’s since cooled off, with ENS trading at $54 at press time. 

Disclosure: A the time of writing this feature, the author owned, BTC, ETH, and several other cryptocurrencies. 

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