Update: Dexx, maintainer of Omni Core, clarified that a transaction was sent to one of Tether’s destinations—it wasn’t Tether that created or sent the fake BCH token. The Omni Layer also doesn’t use it’s own blockchain, but BTC Core as underlying base and as transport layer.
It shouldn’t have been possible, technically. However, someone managed to turn the impossible into the possible: A transaction for a single Bitcoin Cash (BCH) token was sent via Tether’s OMNI address.
As difficult as it is to believe it can happen, it was actually done quite simply when someone created a Bitcoin Cash token on the OMNI blockchain. It shouldn’t have occurred, and it’s a troubling proposition that it did. Making matters worse is the fact that the fake coin is using the official BitcoinCash.org website as its address.
The OMNI blockchain is one of the most open chains in the world of virtual currency. Anyone has the capability to create a new token on the chain, independent of the token’s name. Perhaps in a momentary lapse of reason, or just to see what would happen, a user created a Bitcoin Cash token which now resides on the OMNI layer. Emphasizing the issue is the fact that the transaction came from an address on Tether, which has put out billions of its USDT token since the past several months.
It’s not illegal to put a Bitcoin Cash token, or any other token, on the OMNI network, but it can certainly lead to a great deal of confusion. The majority of cryptocurrency neophytes wouldn’t be able to determine if a BCH coin were real or fake. The good news is that there’s only a slight chance the token is being traded on any exchange. The bad news is that there appears to be a growing trend of these fake coins, and something needs to be done to stop them.
OMNI tokens can be created by anyone at any time, using a name they choose. It only stands to reason that it won’t be long before other fake coins, perhaps a fake Litecoin or fake Ripple coin, is seen on the network. It should be considered the same as someone using a trademarked product name, such as Coca-Cola, and presenting it as their own. The matter needs to be addressed, and imposters need to be held accountable for their actions.
There are currently over 21 million OMNI tokens in circulation. The digital coins are sent to an address at MetaDex, a decentralized exchange platform. Until some permanent resolution is found, users need to pay close attention to their transactions and try not to mistake a real coin for a fake one. It’s harmful to not only the success of the targeted cryptocurrency, but to the entire cryptocurrency industry.