Key points to remember
- OpenDAO is a new decentralized project focused on NFT.
- It was launched on Christmas Eve with a symbolic airdrop for OpenSea users. The token shot up overnight.
- The mode of distribution is notable due to recent criticism of OpenSea and its reluctance to launch a token.
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After rising overnight, OpenDAO’s market cap is around $ 295 million.
SOS Airdrop Calms OpenSea Problems From NFT Community
Christmas just keeps getting better for the NFT community.
A new project called OpenDAO kicked off on Friday, bursting onto the scene with a token drop for dedicated NFT collectors.
The project has allocated a portion of 50% of its SOS token offering to users of OpenSea, the largest NFT marketplace. The amount distributed to each user was calculated based on the amount spent on OpenSea and the number of transactions before a snapshot date. As a result, some of the more active NFT traders received the largest drop payouts. Christmas token airdrops like this have become something of a crypto phenomenon in recent years; In 2020, 1inch memorably handed out its 1INCH token to early adopters at midnight on Christmas Day.
The distribution method chosen by OpenDAO is remarkable in part because of recent developments surrounding OpenSea. As NFTs exploded in popularity in 2021, OpenSea consolidated its leading market place for digital collectibles. OpenSea users have long hoped that the team would launch a token to give the community ownership of the project. Token drops are a common practice in crypto, and in particular DeFi, among projects looking to move towards decentralization and reward early adopters who have contributed to their success. However, despite ongoing rumors, OpenSea has yet to launch a token. Earlier this month, the company hired new Lyft CFO Brian Roberts, who revealed in a Bloomberg interview that he wanted to work on the IPO of the company, which would probably rule out any symbolic project. Roberts went on to say that the company “would seek to involve the community” in any potential IPO following intense backlash from the NFT community.
There were inaccurate reports on @OpenSeathe plans of. Let me set the record straight: There is a big gap between thinking about what an IPO might look like and actively planning one. We are not planning an IPO, and if we ever did, we would be looking to involve the community.
– broberts.eth (@BKRoberts) December 8, 2021
Now, interest in OpenDAO and its SOS token indicates that the community has an appetite for a decentralized project focused on NFTs. According to data from CoinGecko, SOS has risen 589% in the past 24 hours. Similar to many meme coin projects that have sprung up this year, the token has a large supply of $ 100,000 billion, meaning each token is only worth a few fractions of a cent. At the time of going to press, $ 100 of USDC is purchasing approximately 12 million SOS on Uniswap. With the surge overnight, the market capitalization of the project is approximately $ 295 million. Etherscan data shows that SOS has more than 130,000 holders, and that number could increase as more users start claiming their airdrops.
On its website, OpenDAO describes SOS as “the token of the largest NFT community, to pay homage, protect, promote”. Interestingly, it indicates that a 20% allocation of the offering will go to support the community by compensating victims of OpenSea scams, supporting emerging artists, NFT communities and art preservation, and organizing a developer grant for the SOS ecosystem. While it’s not clear whether OpenDAO will have a lasting impact on the NFT space, so far it has generated significant buzz with its token gift.
Disclosure: At the time of writing, the author of this feature was eligible for the OpenDAO SOS Airdrop. They also owned ETH, USDC, and several other cryptocurrencies.
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