The venture capital arm of Genesis Block, GBV, announced a new acquisition. OMG Network, known ad OMG, is the latest acquisition, and GBV considers it the first major one. OMG focuses on layer-2 development for the Ethereum network. The recent purchase helps them move faster toward their goals.
OMG’s focus project, formerly known as OmniseGo, was the primary reason that GBV decided to buy them. According to GBV:
“OMG Network was established as an SYNQA subsidiary in 2017 to pioneer the development of Layer-2 infrastructure to support the Ethereum blockchain ecosystem. The project, OMG Network, is a trustless, non-custodial, Layer-2 scaling solution for transferring value on Ethereum.”
As mentioned before, OMG is the first major acquisition by GBV. They plan to expand their portfolio by finding and acquiring more blockchain companies. OMG, can the strategic move from this venture capital to find more customers in Asia.
Genesis Block Ventures mainly focuses on DeFi development. OMG is now one of the leading layer-2 solutions for Ethereum that improves the efficiency of DeFi products. GBV hopes that the recent acquisition will help it become the top venture capital in the DeFi ecosystem.
OMG has helped lots of dApps leverage Ethereum financial solutions. It offers the infrastructure needed to transfer ETH or ERC-20 tokens significantly faster. As Ethereum is getting close to the significant upgrade, OMG layer-2 solutions will become vital. The overall result benefits GBV as the investor.
The recent acquisition comes with some integrations and partnerships. GBV and OMG will merge resources for DeFi development, too. Their technical teams can benefit from each other’s expertise and develop new solutions for the DeFi ecosystem.
According to the announcement:
“As one of the major objectives of this acquisition, GBV will ensure the smooth transition of OMG Network’s team and business from SYNQA to GBV, minimizing the impact of the acquisition on OMG Network’s token price. Additionally, both companies will address appropriately to the potential concern from employees, clients, token holders, and the community.”
GBV says that transitions and mergers will happen in the long term in OMG. They will work on their current plans for at least six months, and minor changes will occur in parallel. OMG token will still be the primary token for OMG Network. On the other hand, the search for new partners for OMG Network continues. They plan to continuously improve their layer-2 solutions for the DeFi ecosystem – especially on Ethereum.
If you found this article interesting, here you can find more DeFi News