Omni Woes

Bad Evening ūüôĀ

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¬† 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 Рwhich 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 Рat 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 РRipple 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 РI 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.


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 ūüėõ


Post Author: Frankenmint

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  • 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.