Friday, January 21

What is SOS, the token that OpenDAO gives away to Opensea users?

SOS is the token of OpenDao, a new decentralized autonomous organization (DAO) that distributes free SOS tokens to users of the OpenSea platform, the largest market for NFTs today. OpenDao It is described on our website as “the token for the larger NFT community, to honor, protect and promote. ‘

Well, Opensea users are receiving an airdrop of SOS tokens of up to 5 figures. The project has nothing to do with the popular NFT market, nor with the stablecoin minting protocol of the same name. Through Twitter, OpenDAO reported on the launch of its SOS token, developed on the Ethereum blockchain. The project highlighted that about 78% of registered users in Opensea have already claimed the token airdrop. Users of the NFT marketplace platform are also receiving non-fungible tokens from the project as gifts, valued at about $ 1,500 USD.

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50 billion SOS from OpenDAO

OpenDAO explains on its website that it will distribute 50% of its total issuance of SOS tokens to all NFT creators, collectors and merchants who nurtured the Opensea ecosystem this year and who commercialized NFTs through the platform before December 23. The project will create a total of 100 billion SOS tokens, reserving 20% ​​for its treasury. OpenDAO will allocate the remaining 30% of SOS tokens for the delivery of rewards for staking and incentives from LP (liquidity providers).

Accelerated growth

Since its official announcement less than a week ago, OpenDAO has gained massive popularity among the crypto community. His Twitter account has more than 133,000 followers. The contract of the token on Etherscan shows that there are more than 200,000 SOS holders. And its value has grown more than 900% in the market.

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According to data from CoinMarketCap, SOS raised more than $ 320 million in capitalization last Saturday, although at press time its market value is below $ 200 million. The token has fallen 27% in the last few hours and more than 55% since its last all-time high. Its current price is $0,000004441 per unit currently.

Evolution of the OpenDAO (SOS) price in the last week. Source: CoinMarketCap

Vulnerabilities and risks

Given the accelerated growth of the project and the recent drop in its value, several developers and crypto investors have alerted users about the possible risks of the project. In the crypto industry, the growing demand for new and innovative products has led developers to create projects without the proper basic security measures, putting the capital of investors eager to generate returns at risk.

Rug Pull and more

Almost all OpenDAO developers remain anonymous, which for some increases the risk of a common scam from rogue developers: the Rug Pull. Likewise, Quadrata Network co-founder Fabrice Cheng detected several vulnerabilities present in the SOS contract code. Cheng pointed out that SOS tokens lack basic security measures, so they are not safely stored in wallets. Increasing the risk of hacking and manipulation.

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In any of these 3 scenarios, the SOS value could go to zero, leaving thousands of users affected. Another possible risk that exists in OpenDAO is the lack of clarity in its objectives and vision, beyond delivering rewards to Opensea users. Which could lead to the death of the project once the euphoria of the moment passes.

The project indicates on its website that 20% of the SOS tokens in treasury reserve could be used to compensate users, in the event of an exploit or hack in the project. At the moment, it is not possible to know what will be the destination of OpenDAO, although it is beginning to associate with projects like to add value to its users and holders.

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