Wednesday, January 19

What is SOS token? Why is everyone talking about it?

At the end of last week, suddenly a new organization quickly became popular with the crypto community: OpenDAO. And the reason lies in the airdrop of a token called SOS. But what happened? And why is it a topic that everyone talks about? We tell you!

SOS, a surprise Airdrop

On Christmas Eve, what, at the time, some might consider as magic happened, because, before that day, the crypto community had no idea that something like this would happen. And is that anyone who had spent money on OpenSea had the right to claim a token for free called SOS.

A fundamental aspect is that the amount of SOS that a person could claim would be directly related to the amount of money that they had spent before December 23 on OpenSea.

To claim the token, people only had to connect their wallet, for example MetaMask to the OpenDAO website, estimate their rewards based on the total number of transactions made on OpenSea and claim their tokens.

And, by last Sunday, around 240,000 people had already claimed the token. But, in addition, the value of the token had soared by more than 1,000%. This is critical given that the price of this token rose faster than even some of the most popular shitcoins.

However, since then, the price of SOS has corrected, but even so, in the last 24 hours it has increased by 54%.

The OpenDAO SOS token reached an all-time high on December 25.  CoinMarketCap source.
The OpenDAO SOS token reached an all-time high on December 25. CoinMarketCap source.

What is OpenDAO?

It is relevant to understand that OpenSea is not behind this airdrop. The manager at OpenDAO, a decentralized autonomous organization. According to its website, this organization is committed to using some of the tokens to compensate OpenSea users for scams and to support the NFT industry.

In fact, on Saturday December 25, OpenSea posted on Twitter a statement clarifying that they are not involved with the SOS airdrop. And furthermore, they suggest always research the contract and the source before claiming the tokens.

But, furthermore, this organization should not be confused with a Stablecoins minting protocol bearing the same name.

So who is behind this new organization? The reality is that there is very little information about it. In the Twitter bio of OpenDAO they establish that their main collaborator is an anonymous user under the user @ 9x9x9eth.

On December 25, the user published a Tweet with the intention of being 100% transparent, where he assured that he was not receiving any payment from OpenDAO. He also assured that he is not working on this project for profit since, if that were the case, he would have bought the token in the first hour.

SOS token economics

According to the organization’s website, the total SOS offering is restricted to 100 billion tokens; of which 50% were designated in the airdrop, 20% will be issued as participation incentives and another 10% to liquidity providers.

Likewise, a final 20% will go to the OpenDAO protocol, which, they say, will be used to compensate the victims and support the NFT community.

However, the reality is that they have not yet published a roadmap. According to 9x9x9, this is because they are not a company with a roadmap, but a DAO and, therefore, decisions are made together.

It is safe?

Crypto investors should always keep in mind OpenSea’s warning: “Always check the contract and sources.” The reality is that caution never hurts when it comes to something that seems too good to be true. An investor should never get carried away by the FOMO and, much less, by what others say.

So far there are crypto users who ensure that everything seems correct while others believe that there are some flagship networks, or threats, that they should take into account.

For example, the smart contract detective known as “0xquit” claimed in a Twitter thread that he found few problems with the code. According to him, it seems safe to claim and exchange the SOS token since there is nothing out of the ordinary about the Smart contract.

But according to “fabdarice” there are some elements within the code that don’t look very good. In particular, he found that half of the tokens are in three external accounts. And why is this important? According to him, this could mean that the team can at any moment lock in the flow of liquidity and thereby bring the value of the token down to 0.

In addition, it apparently also found that the contract’s claim function allows developers to “award any arbitrary amount of SOS to any arbitrary wallet simply by generating valid signatures,” without anyone being able to “differentiate valid from invalid claims.”

In this way, one cannot lose sight of the fact that the crypto market is riddled with risks and it is the responsibility of each investor to determine the risk level of a project and make an informed decision.

Leave a Reply

Your email address will not be published. Required fields are marked *