NFT enthusiasts took to Twitter and Discord to announce their excitement after OpenDAO’s $SOS token airdrop launched on OpenSea.
The project allocated 50% of its $SOS tokens to active OpenSea users – and many NFT fans can’t quite believe their luck.
The question is: is it as innocent as it seems?
Are $SOS tokens legit?
First things first – according to the official website:
“50% of $SOS token will be distributed to all addresses that have traded on OpenSea since day 1. The distribution is based on the total number of transactions (30% weight) and transaction volume on ETH, DAI & USDC (70% weight) on OpenSea. Users have until June 30, 2022 to claim their tokens, after which any remaining tokens will be sent to the DAO treasury.”
While this initially looks like a good deal, many NFT enthusiasts are questioning whether there’s a hidden agenda behind this seemingly-generous drop.
Thankfully, Twitter user @fabdaRice rounded up the $SOS tokens’ red flags. Here’s an overview of what @fabdaRice wrote:
- 50% of all tokens are currently available in 3 EOA wallets with no vesting or lock periods. Therefore, the team can, at any point, rug the entire liquidity. The whole operation is also at risk of having a central point of failure being compromised.
- Developers can claim an arbitrary number of $SOS tokens while being completely invisible to everyone else.
- When a claim is taking place, the contract is reviewing that a wallet isn’t claiming more than “totalSupply”. However, the contract isn’t checking that the tokens claimed aren’t more than `AMOUNT_AIRDROP`
All in all, $SOS tokens seem legit, however, users still need to be aware of this project’s red flags.
What are the other threats posed by $SOS tokens?
The threat also lies in the bad actors that are trying to manipulate this opportunity in their favour. Bots are spamming Discord servers with malicious links, posing as legitimate actors and wiping out the wallets of NFT enthusiasts.
Therefore, it’s super important that you click the right link and use the verified contract. Be wary of any links in Discord servers claiming to be the correct link. Clicking on these links is a risk and may lead to the devastating consequences many have experienced in the last couple of weeks.
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This article is educational material.
As always, make your own research prior to making any kind of investment.