One of the biggest value drivers for OmiseGo (OMG) has been its ability to penetrate the South East Asia market, using blockchain technology. The platform has managed to take advantage of blockchain decentralization to offer banking services to the unbanked populations of South East Asia. Now it is taking this strategy a notch higher by making in-roads into the South Korean market, one of the largest crypto market’s in the world. It is doing this through a partnership with one of South Korea’s biggest banks’, Shinhan. Through this partnership, OmiseGo will offer tech support in helping this bank integrate blockchain technology into its systems. So, what does this deal mean for OmiseGo?
The most immediate impact of this deal is an increase in the trading volumes of OmiseGo as people rush to take advantage of this news. OmiseGo trading volumes have been on the rise since the deal hit the headlines. In the near-term, the trading volumes for this crypto will continue to rise, and so will be price. The primary driver to these volumes is the South Korean crypto market, which is one of the largest and most enthusiastic in the world.
This deal also opens up OmiseGo (OMG) to wider adoption in the South Korean banking industry. That’s because part of the deal is to have OmiseGo process card payments for this bank’s credit card department. Once this succeeds, more banks are likely to come in and try it, in a bid to gain competitive advantage in the market. More widespread adoption means an even stronger value growth for OmiseGo, since its intrinsic value will increase. In fact, the trend could continue outside of South Korea, and see OmiseGo take over the global card processing industry.
There is also the likelihood that OmiseGo will diversify beyond the South Korean banking sector, and create a foothold in other areas of this economy. To understand this, one needs to look at the OmiseGo CEO statement when they were signing a deal with Shinhan. Part of his statement read as follows,
“…The first phase of the wallet SDK was recently released and is available for anyone to use. We want to make it easy for those who need online asset exchange as part of their business to connect seamlessly to the OMG Network.”
This is a clear pointer to the direction OmiseGo wants to go in South Korea. It wants to take over the entire payments business in this country, and it’s a huge deal, in terms of its future value growth. Investors are likely to continue pouring money into this crypto in anticipation that the increased entrenchment of this crypto in South Korean finance will influence its value. The result, will be an increased buying pressure that could see OmiseGo quadruple in value over time.
Personally, I am bullish on this crypto after the Shinhan deal. It is an indicator of the growing value of OmiseGo (OMG) in Asia. In fact, based on this deal alone, OmiseGo is probably the most undervalued cryptos in the market.