Ripple-Backed Rental Startup Omni Shuts Down, Cites Difficulties

San Francisco based rental startup Omni, which emerged in 2015, has officially ended its services and shut down its website. 

In a letter posted on its website, Omni thanked its supporters and explained the difficulties that caused it to stumble.  

The startup was backed by the US-based blockchain tech Ripple. In January 2018, Ripple led a $25 million fundraising round for the company. It also continued its support for Omni by including the exchange on its list of initial companies backed by Ripple’s fundraising and development arm Xpring. Moreover, Ripple served it by offering people means to rent items in a peer-to-peer manner using the digital token XRP or cash

It was reported last November that US-based cryptocurrency exchange Coinbase had moved to hire Omni’s engineering team, which was followed by deterioration in Omni’s daily business, due to problems arising from getting customers. Thus, Omni launched a white-label service that gives room to merchants to market their personal rental services, in a bid to save its business.

The news came amid expectations that the XRP would surpass the $0.1974 level in the near term, with a possibility of moving to the next resistance near the $0.1985 level, and even targeting the $0.2000 mark in the near term.

Meanwhile, Ripple’s CEO Brad Garlinghouse, in an interview with CNN, said that his company does not want to “dump” its associated XRP cryptocurrency in spite of the huge amounts sold, adding that Ripple can’t control XRP price. Asked about how Ripple manages that ownership, Garlinghouse stated that dumping XRP is not in Ripple’s best interests, adding that his company took steps to lock up most of XRP it owns in escrows so it can’t touch it.

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