OpenDAO’s Token Reached $250M Market Cap Despite Security Risks

OpenDAO’s token SOS reached a $250 million market cap level despite having unclear goals and security risks but that doesn’t mean it will stay in power after the successful airdrop so let’s read more today in our crypto latest news.

In the remarkable display of the power of airdrops in community formation, the new token reached a peak in market cap of over a quarter-billion dollars in just a few days. Unclear goals and looming security risks often lead the prices drifting lower as the interest and attention started to wane but its market cap now sits at $207 million. NFT trades on Christmas awoke to an airdrop of SOS tokens with the governance token for the newly-formed OpenDAO’s token and organization.

eh just gna answer here @Blockanalia

tokens (and now even equity, see tsla) have mostly been about proxy relationships to the appearance of success. they are, wait for it, schelling points for ppl to rally around common assumptions of plausibly deniable hodling pic.twitter.com/6MdgeUS0mc

— mewny (@mewn21) December 28, 2021

Airdrops are a token distribution method that allows crypto users that perform certain actions to claim the tokens. In this case, the airdrop applied to the ETH address which purchased NFT on the popular OpenSea marketplace with a potential pool of over 850,000 addresses but to be clear OpenDAO has now a relationship with OpenSea aside from targeting the userbase with an airdrop. According to the Dune analytics dashboard, more than 275,000 addresses claimed the airdrop with the median claim worth $125 at current prices. Most collectors reported the claims in the four and five-digit ranges and the exact math used to calculate the amounts have not been disclosed.

Despite the hot start for the project, multiple experts cautioned that because of the exploit vulnerabilities it had a hazy roadmap, the SOS could be on the downswing. Right after the airdrop, many Ethereum developers raised red flags on social media that regarded attack vectors in the project’s code or risks or rug pulls from the founding contributors. 50% of the token supply is now in the hands of three addresses that are controlled by the core team and they are reserved for staking rewards, DAO treasury, and liquidity mining incentives but they have no on-chain security guarantees like timelock, multi-sig wallet, and vesting schedule.

2/ Some context: $SOS from @The_OpenDAO is a fresh new airdrop for all wallets having purchase NFTs on Opensea.

Users can go on https://t.co/0nV8WPxeCq and claim $SOS and "eventually" swap this for $ETH on Uniswap.

— fabdaRice (@fabdaRice) December 25, 2021

The team has the ability to take these tokens and dump them on centralized or decentralized exchanges as they made millions and drive the value of the token to zero. The DAO will be closing the redemption period for the airdrop in June and the unclaimed tokens will be transferred to the DAO treasury.