Olympus DAO OHM Surges Past $160, Defying Ponzi Allegations Controversy

Olympus DAO is recovering from summer lows and is rapidly approaching the new ATH. The smart token economy, a strong community and meme culture are the factors that move users to take on the project.

Olympus DAO (OHM) goes higher

While other cryptocurrencies fluctuate with market volatility, there is one project that keeps rising higher.

OHM is up more than 160% in the last month as interest in the project hit an all-time high. OHM is currently trading at $ 1,224, about 13.6% below the ATH hit of $ 1,415 this April. During the May market crash, the project suffered a blow, losing nearly 90% of its value, and tumbling to an all-time low of $ 162. So far the price has recovered strongly.

OHM / USD chart | The source: Coin Gecko

Olympus DAO is a DeFi protocol that issues freely transferable, fully secured OHM tokens. The ultimate goal of the project is to create a stable cryptocurrency. However, considering the historical price movement of the OHM token, this does not seem to be the case.

The previous fluctuations were intentional in the early stages of the project. The current top priority of the DAO is to increase the supply of OHM tokens, which will then stabilize. To increase the token supply, Olympus DAO is building a smart token economy system that will attract new users and add value.

The DAO works so that users can connect other cryptocurrencies like MakerDAO’s Dai Stablecoin to the protocol in exchange for receiving newly minted OHM tokens and at a lower price. This gives the DAO assets and is then used to generate profits.

OHM holders can use their tokens to receive the profits generated by the DAO, which gives them an incentive not to sell OHM. This design creates more confidence in the future of the project as the profits keep increasing. Accordingly, the market evaluates the token higher, which drives the price up. This has led many to tie their assets together in exchange for discounted OHM, closing the cycle.

The source: Ryan Watkins

The momentum out of the token economy will only work if enough people use the moveable protocol. Olympus DAO attracts users to the project through the strong community and meme culture surrounding the project.

On social media, many Olympus DAO supporters (who call themselves “Ohmies”) use the suffix (3, 3) in their names to show loyalty to the project. Cards (3, 3) relate to game theory of how the project works. If a user deploys OHM, this is conceived as a +3 for the DAO as this creates scarcity and increases the price of OHM. If all DAO participants choose to set their OHM, this leads to the highest possible positive net result for all token holders, represented by (3, 3).

Game theory from Olympus DAO | The source: Olympus DAO medium

The game theory meme format has become so popular that it has even been expanded to other projects. For example, users of the DeFi protocol Tokemak use similar memes with radioactive characters instead of numbers.

The source: TokenReactor

In addition, the Olympus DAO continues to inspire a number of similar projects. The recently launched TempleDAO is inspired by the Olympus meme culture. Wonderland, a branch directly on Avalanche, was also developed by DeFi 2.0 pioneer Daniele Sesta and received congratulations from the Olympus DAO team.

Right now OHM price looks strong, with trading volume higher than ever. While the token economy predicts the price will continue to rise, critics have compared the protocol to a Ponzi scheme. Will the Olympus DAO be able to maintain its current growth rate or will it collapse soon?

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