Why is OHM crypto dropping?

The point of OHM is to act as a store of value, not pegged to the $1 mark as are USDT, USDC, and others. Instead, Olympus DAO uses a protocol-owned reserve of cryptocurrency assets to back the issuance and value of OHM tokens.31 Ara 2021

Olympus DAO’s native token hit $1,415 at its peak in 2021, and it has dropped 91.8% from an all-time high. Experts believe that capitulation by whales triggered a drop in the Ethereum based token’s price.

OHM and sOHM tokens will have their identical V2 counterparts . OHM V1 becomes OHM V2, and sOHM V1 becomes sOHM V2. Token tickers will remain the same for V1 tokens. For example, after migration, your wallet will show “OHM” instead of “OHM V1”.

As mentioned before, OHM is pegged with DAI tokens in a 1:1 ratio. For each OHM token, there is a DAI token held in the treasury. … Olympus Finance also makes a profit by sending DAI tokens to yield generators . They can do this, as the protocol requires a few percent of reserves no matter how bad the price difference is.15 May 2021