6.7
Score

Product
6,0
Market
5,6
Use of Blockchain
5,4
Whitepaper
7,2
Roadmap
6,8
Business Model
6,8
Team
8,8

Final Verdict

Website: OmegaOne
Whitepaper: Whitepaper
Twitter: Twitter
Facebook: Facebook
Blog: Telegram
Datum Sale: Q2/2018

OmegaOne is a decentralized trading-platform with the goal of providing the market with sufficient solvency and to guarantee a certain price stability. The project is mostly aimend at investors with high purchasing power. The focal point of the project is OmegaOne’s balance sheet which is supposed to be filled with the help of the ICO.

Problems

OmegaOne mentions three problems which come up with conventional trading-platforms:

  1. The problem of solvency
    A lack of solvency is increases costs on the cryptomarket as well as the stock market. Ignoring the customary fees you would think a trade would happen at a fixed price. But if you look at things closely you’ll notice that besides direct transaction fees there are additional indirect fees due to a lack of solvency. By way of illustration: Let’s assume an investor would like to buy 100.000 units of currency X at the price of €1,00. But there are many different platforms this currency is traded on; So the investor has to decide on one platform. When he’s come to a decision he executes the trade. But now he realizes that there are only 50.000 units of the currency on sale for €1,00. 30.000 units more are available for €1,10 and another 20.000 are available for €1,20. So the purchase looks like this:
    50.000 x €1.00 = 50.000€
    30.000 x €1.10 = 33.000€
    20.000 x €1.20 = 24.000€
    So instead of the planned €100.000 our investor has to pay €107.000. Therefore the solvency fees are at 7%.
    A sale would face similar additional costs.
  2. The security problem
    Most platforms trade in currencies based on the blockchain, but only a very few of them are decentralized themselves. So people trade with secure currencies on relatively insecure platforms. In the last few months numerous trading-platforms have been hacked which resulted in the loss of more than two billion US-Dollar.
  3. The transparency problem
    The costs of solvency are not only almost impossible to predict, but are also ignored by many traders entirely. Especially institutions which trade with the money of their clients are scared off by transaction costs this high.

Solution

OmegaOne wants to solve the solvency problem with a sophisticated balance sheet. OmegaOne has provided money in the form of BTC, ETH or other currencies on many platforms. If an order can only be filled partially or not at all on OmegaOne’s internal trading-platform the requested amount is collected on several platforms and sent back to OmegaOne. From there the order of the user can finally be filled in whole.
Here OmegaOne differentiates between “parent order”, “net order”, “child order” and “street order”. The parent order can be seen as the primary trade. Such an order is made up of a trading pair, the amount and the direction (buying or selling). In the first step, the parent orders are tried to be arranged on the internal platform. Is that not possible, the order is sent into the “trading engine” as a net order. From here, the net order is split into child orders and sent to the different Exchanges. On the individual trading-platforms a child order is, again, split into street orders. A street order now is the individual trade on a platform. Such an order can either be a market order or a limit order. The in-house “Trading Logic” optimizes every single trade to achieve the most profitable outcome.
By way of illustration here is a detailed graphic from the Whitepaper:Ein solcher Auftrag kann sowohl eine market order als auch eine limit order sein. Die hauseigene „Trading Logic“ optimiert jeden einzelnen Trade, um das profitabelste Ergebnis zu erzielen.
Zur Veranschaulichung hier eine detaillierte Grafik aus dem Whitepaper:

OmegaOne - Order Flow
  1. OmegaOne wants to ensure complete security through patterning the whole trading-platform on the blockchain. Consequently any central entity is deleted from the calculation. Additionally, OmegaOne is an intermediary between decentralized currencies and centralized exchanges. As a result, the user has an almost risk free trading experience. OmegaOne is providing their own Wallet service, as well. The user – and only the user – has access to the individual private keys of all Wallets. Thus OmegaOne at no point in time has access to the investor’s balance.
  2. Transparency is a huge priority with OmegaOne. In contrast to other platforms the users are informed exactly about any upcoming fee before every trade. For this, OmegaOne compares all possibilities and shows the user the most profitable one. The user themself can check the recommendation and give the okay.

Team

The team is certainly the strongest point of the project. If you look at the team members and their experiences you’ll quickly notice that almost everyone has collected experiences in the finance- and/or blockchain-world.

CEO Alan Keegan is highly experienced in the financial market. Before beginning to work on OmegaOne he worked for Bridgewater Associates, the world’s largest hedge fund. But Alan Keegan has only been working with blockchain technology for two years.

CTO and Chairman Alex Gordon-Brander has gathered experience at Bridgewater Associates as well as ConsenSys. Furthermore Alex Gordon-Brander is a specialist for trading platforms. He is one of the top trading platform-designers and holds a patent for the MarketAxess bond trading platform. To date, two trillion US-Dollar have been traded on that platform.

Mark David Bakacs and other team members are already experienced in blockchain projects. OmegaOne asserts that not all team members are listed on the website. Especially the technical team is missing since OmegaOne is cooperating with a number of companies.

The consultation team is impressive, as well. Besides Joseph Lubin, a familiar face in the cryptoworld, Jose Marques is listed as an advisor, too. Joseph Lubin is a co-founder of Ethereum and founder of ConsenSys. Besides his job as head of trading at Bridgewater he also works for the Deutsche Bank.  Besides Joseph Lubin, numerous other ConsenSys-members work as advisors for OmegaOne.

Token-Sale

The Token-Sale was announced for the fourth quarter of 2017. But as part of an AMA (Ask Me Anything) it was announced that the Token-Sale would only take place in the second quarter of 2018.  The reason for this delay in particular, they say, is the not yet perfected user interface. OmegaOne has also decided not to invest the capital gained in the Token-Sale into development and starting cost as planned. Instead that money will flow into the balance sheet and the planned membership perks. Development and starting costs are to be handled with the basic capital alone.

As a compensation, a 10% bonus was promised to early investors.

Token

Despite the delay of sale, the token shouldn’t change all too much.

The Omega Token (OMT) has a number of uses:

  1. Membership: To gain access to the platform a certain minimum of OMT is needed. A higher OMT-Balance opens access to several premium functions.
  2. Fees: Trading fees can be paid with OMT. Should a user decide to do so, they will receive a discount.
  3. Executionpriority: A higher OMT-Balance results in a faster execution of transactions.
  4. Perks: A higher OMT-Balance also carries other benefits.

It needs to be noted that users can buy Omega Tokens at any time.

Roadmap

  • The “Trading Engine” is integrated in various Exchanges.
  • The Omega Token is in development.
  • The Omega-Wallet and multi-chain Integration are in the design phase and enter the development phase in July.
  • Smart contract is checked by ConsenSys and third parties for security.
  • Release 1.0
  • Smart contract Wallets
  • 2-5 Exchanges
  • BTC, ETH and the most popular ERC20 Tokens
  • First version of the Execution-logic
  • Release 1.1-1.x
  • Further Exchanges
  • More currencies and tokens
  • Analysisservice
  • Fiat-currencies
  • Improved logic
  • Release 2.0
  • End to end trustless liquidity available
  • Selfimproving/decentralized logic engine
  • Broadened expansion via solvency sources and assets

Takeaways

OmegaOne is a quite legitimate project which places it’s focus particularly on the big fishes in the finance world. The average investor only profits from this modern technology to a limited extent. Solvency is not a big issue with smaller investments. Besides, in our opinion an ICO is not necessarily justified. A token is not strictly necessary for such a project. How the price of the Omega Token develops remains to be seen.

Should you have further questions, find mistakes within the review or just want to discuss the newest developments in the cryptoworld with the CryptoGo-Team, visit us in the CryptoGo Telegram-Channel or subscribe to our newsletter. You’d like to know how other ICOs performed after their start?Check it out on our ICO Monitor.