Osmosis has raised $21M through a consortium of investors, should you invest in OSMO?

By: Milko Trajcevski
Milko Trajcevski
Milko leverages his passion for cryptocurrencies and teaches investors something new each day. During his spare time, he loves… read more.
on Oct 28, 2021
  • Osmosis has raised $21 million in a token sale led by VC Fund Paradigm.
  • Osmosis allows developers to build customized automated market makers with sovereign liquidity pools.
  • The DEX uses its native token, OSMO, for governance and staking.

Osmosis OSMO/USD is an automated market maker (AMM) decentralized exchange (DEX) that is built using the Cosmos SDK and works on the Cosmos Ecosystem. OSMO is the native governance token of Osmosis.

The $21 million investment as a catalyst for growth

On October 27, Osmosis (OSMO) announced on Twitter that it had raised $21 million dollars in a token sale which was led by VC fund Paradigm.

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This, in turn, means that it has joined Paradigm’s other DeFi portfolio members, such as Maker, Uniswap, Optimism, Synthetic, FTX, BlockFi, and Coinbase.

In fact, the DEX uses its native token OSMO for governance and staking and currently contains a total of $594.89 million in total value locked (TVL).

The project has the goal of providing superfluid staking as well as instant block confirmation. Superfluid staking lets liquidity stakers stake their LP tokens with the goal of earning staking rewards in OSMO.

This gives the token holders the ability to compound staking as well as liquidity fields, all whilst keeping the network secure.

This investment has the potential to bring the OSMO token higher in value, which might make it the perfect time to invest in the token.

Should you invest in Osmosis (OSMO)?

On October 28, Osmosis (OSMO) had a value of $5.67.

To get a better perspective as to what kind of value point this is for the token, we will be comparing it to it’s all-time high-value point as well as its prices in September.

The lowest point of value for the Osmosis (OSMO) token in September was on September 8, when the token reached a value of $3.53.

The all-time high value of Osmosis (OSMO) was on September 20, when the token reached a value of $7.61. Here we can see that from September 8 to September 20, OSMO increased in value by 115% or by $4.08.

That said, from September 20 to October 28, the token fell in value by $1.94 or by 25%. 

That said, it has seen recent growth and has the potential to reach $6.5 by the end of November, making it a solid investment.

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