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OpenSea users got a special surprise for Christmas. As part of a promotion, they could claim free tokens. Now, these tokens are up more than 1000%.
An Ethereum token OpenDAO (SOS) has been ten-fold since its Christmas airdrop. Now, OpenDAO, the group behind the drop, wants to push the project further.
They announced a partnership with Treasureland, a cross-chain NFT platform. The Devs said that this is to promote ecological NFT development.
Treasureland works with Binance Smart Chain, Ethereum, Polygon, IoTex and Moonriver. Now, users will also be able to trade NFTs with SOS. Furthermore, 50% of the trading fees will go towards ecological NFT development.
Earlier, OpenDAO partnered with NFT marketplace X. The company said that 25% of their supply of veX would go to SOS staking over the next four years. VeX is the native token of the X exchange.
On Christmas, developers started a promotional stunt by giving out free tokens to OpenSea users. OpenSea is the largest NFT platform out there. OpenDAO is, however, not affiliated with the venue. Yet, despite that, by Sunday, about 240,000 had already claimed their tokens.
Users have up to June 30, 2022, to claim their tokens. After that, the number of tokens they can claim is proportional to how much they spent on the site. Using OpenSea now won’t help, however. Only users that bought NFTs before 23 of December 2021 can claim the tokens.
What Is OpenDAO?
But what is OpenDAO, and what does the SOS token do? The Devs say that OpenDAO is all about NFTs. They make that claim by pointing to tokenomics. In contrast, 50% of the token goes to OpenSea users, 20% to the foundation.
OpenDAO says it will use that money to compensate victims of NFT scams and support NFT artists and communities. They also claim the money will go to preserve art and a Developer Grant. The rest of the coins will go towards liquidity pool and staking incentives.
Devs also claim that they are a Decentralized Autonomous Organization (DAO) on the Ethereum blockchain. A DAO is an app on the blockchain with no centralized control. Specifically, it gives investors the ability to control it from the bottom up. OpenDAO claims to be just one such DAO but focused on NFTs.
Others, however, call the project a clever marketing trick. With the market saturated with tokens, developers need to create unique ways to market them. In comes “airdropping” passes. By giving out free tickets, devs hope to ramp up publicity for their coin. In the case of the SOS airdrop, they succeeded.
A particularly clever tactic is the weighted distribution. Users that bought the most NFTs got the most significant shares of the tokens. From a marketing perspective, this makes sense. Many of the NFT investors have large followings among the community. If they decide to claim the tickets, others will follow.
OpenSea is the largest NFT marketplace out there. That makes it an excellent target for a drop. OpenDAO even has a similar name to the platform, which confused some. The platform even had to clarify that it had nothing to do with the drop.
We're getting a lot of questions and want to clarify that we are not involved with the SOS drop.
We love seeing the community find creative ways to drive the space forward, but we always recommend researching the contract and the source before claiming tokens.
— OpenSea (@opensea) December 25, 2021
But how did OpenDAO manage to give out the tokens without the help of OpenSea? OpenDAO can do that because every piece of info is already on the blockchain. By linking their wallets, users can prove all their transactions on OpenSea. Out of the 240,000 users that claimed the coins, currently, 208,777 are still holding.
However, there are still some red flags with the project. As one user points out, 50% of all coins are in externally owned accounts with no lockup periods. Theoretically, the devs could sell these whenever they want, likely crashing the token. They are also controlling who gets the money for NFT scam victims and artists.