The native token of a DeFi protocol is reaping benefits after the World Health Organization (WHO) named the newly detected mutant strain of COVID-19 the same as the protocol.
Omicron, which now shares the same name with the new COVID-19 variant, is a DeFi protocol that launched earlier this month as a fork of the OlympusDAO DeFi protocol. Its native token, OMIC, was trading around $65 before the announcement of the name went viral.
Since the naming, OMIC surged to highs of $711 on Sunday, up by almost 950% than its Saturday levels. Apart from sharing the same name, the DeFi protocol has no relation with the new mutant variant. The sudden rise indicated irrationality on part of investors and traders.
A crypto token named after the new COVID-19 variant ‘Omicron’ is up over 650% within the 3 days, and is now worth over $400 million.
If this isn’t a sign we’re in a giant bubble, I don’t know what is. pic.twitter.com/7ESD1v9wgF
— Mr. Whale (@CryptoWhale) November 28, 2021
Omicron, built on the Ethereum blockchain scaling solution Arbitrum, is a fairly new protocol with very little known about it. The protocol calls itself a “decentralized currency protocol built on Arbitrum” with each of its tokens backed by a basket of assets.
At press time, the OMIC token was resting at $612.67, up by 80% from the previous day. While its supply is limited to 1,000,000 OMIC, there is no available data for its market capitalization.