Omni Woes

Bad Evening 🙁

I have this upcoming arbitrage guide that I would like to write using a bot named Blackbird.  In the process, I figured that I would like to use some coin that I’m not currently living off of so I decided to consider liquidating some Mastercoin (Omni Layer tokens) that I had been sitting on Since late 2013.   The long story short is that I’ve lot over 99% of the value of that investment.  Basically I’m feeling like I was burned..but it’s not Mastercoin’s fault – it’s my own fault.  I made the choice to speculate on them and as a result I lost my lunch.  This is what happened:  Around September 2013 I was introduced to Mastercoin by David Johnson who had been involved with the business planning and development involving Mastercoin(Omni).  I already owned some Hydro Mastercoin which I acquired through cryptsy for speculation purposes. (For the rest of the article I shall refer to my losses as Omni).    I had learned about Mastercoin and was enthralled by the potential for decentralized development.  I think what got me interested was the ability to create derivative tokens with built-in escrow.  Who couldn’t love the ability to crowdfund?!?  Apparently (not yet verified)  at some point Omni was approached by the developers of Counterparty to combine efforts – I think it was a mistake for Omni to not capitalize on the assistance because we now see that Counterparty has proliferated (Spells of Genesis and t0.com are high profile projects that in my opinion have seen great success in the cryptocurrency community) when this could have been all Omni.

To jumpstart my path of earning Omni, I wrote a preliminary review back in 2013 – which yielded a solid .6 of them.  From there, I had been holding onto more BTC so I felt confident in actually investing in it.  I purchased 1 BTC worth of Omni Tokens – at the time that that was exactly 5 of them.  From there I pretty much sat on them with the future expectation that through continued development, they may be worth a reasonable mint in the future, particularly if they were being used ubiquitously to create crowdfund tokens and/or other pegged derivative assets.  To put more into perspective, at the time, there was no counterparty, the only known Bitcoin 2.0 tech that I was aware of was Omni and Ripple – Ripple seemed to be essentially the same thing as Mastercoin but on its own blockchain (the ripple network).  Anyhow, I had this 5.6 Omni Tokens that I earned by the beginning of 2014 – I really had high hopes for it.  So imagine my shock today when I learned that my 5.6 Omni tokens (which I assessed was 1.12 BTC back in January 2014) is worth .028 BTC today.

source: coinmarketcap.com

Lesson Learned – no more investment in Altcoins.  I’m only participating in Airdrops going forward.  Not quite sure how I’ll do my arbitrage review as I have some LTC but I’m not willing to turn it back into BTC to use at this time 😛

 

Post Author: Frankenmint

From the pristine land of the internetz, the Frankenment was bred from machine. While looking to embrace the new world Linux regime he is truly a windows bred. I've come from the darkness to the light to share with you other internetz fol-ken to share the message of virtual money. Through our actions, we can make the virtual world yet again beyond the decree of the internet, with the decree of internetz money! Bitcoin, the Supercurrency, the official tender of the internetz that will be accepted by all countries and all fol-ken Alike!
  • Follow the Cycles

    Sorry for your loss. However, I’m not clear why you would close your position for ~$11.00.

    There was an extended period of time where any of the early Mastercoin holders could/did make big returns on their investment. The key is: Once you are showing a profit, you should sell a portion (or all) of your holdings to lock in a positive return. Get your investment back and then settle in to watch what happens to the price/project.

    Step 2 is to watch the project and jump back in with those profits if it shows signs of life.

    And regarding signs of life: Omni is forging ahead and has delivered some important tools, updates, relationships, and news these past two months.

    Good luck!

    • I actually never closed my position – I was too disgusted to go through the work of letting them go – my Omni balance is locked on a cold-wallet I made back in 2013.