Watch “Golem and Friends” here!
In preparation for their highly anticipated Golem and Friends event that took place today in Berlin – which featured talks from the teams behind Golem and OmiseGO, as well as the security-focused operating system QubesOS and data-tokenizing Streamr – Golem made an announcement via their Twitter that’s got a lot of folks saying, “OMG!”
Some quick backstory: OmiseGO’s original plan for their OMG token sale included a 5% allocation for what they termed an “airdrop.” Airdrops, which will be explored in depth below, are a giveaway by a coin developer, wherein some amount of a token will be doled out to anyone who held a prequisite amount of some token or coin. By offering an airdrop, companies are giving back to early investors and coinholders.
In the case of OmiseGO, anyone who held Ethereum in a qualifying wallet at a particular blockheight will automatically receive a some amount of OMG to the same wallet. The OmiseGO airdrop, originally slated to begin on September 4th, has been delayed but is expected to begin this week. While the precise details of how much OMG ETH holders will receive is yet unknown, it has been stated on record that the amount will be proportional to amount of ETH held.
For most ETH holders, this is likely to amount to a small amount of OMG – likely less than a single token, given the volume of qualifying wallets. However, some wallets hold significantly more ETH than the average wallet. Namely, companies that have held a crowdsale or ICO.
Accordingly, some companies are deciding to continue the trend of paying it forward. Among a sea of fraudulent phishing scams described as airdrops, the Golem team followed the example of SingularDTV and elected to return the OMG they’re receiving to holders of the GNT token.
What we know:
A GNT/OMG airdrop has been announced via the official Golem Twitter and confirmed by several members of their team in their Slack channel. It’s important to note that before this announcement, a fake airdrop phishing scam was being shared on their Slack, as described below.
The OMG received will be proportional to the amount of GNT held. It is likely that it is a very small amount of OMG due to the amount of qualifying wallets.
Ethereum wallets wherein the user controls the private key that had the prequisite amount of GNT at the relevant blockheight will automatically receive the OMG. Camille Guilbaud, of the excellent & ever helpful Exodus team, confirmed that Exodus will support the airdrop, by design. Other wallets that will support the airdrop include (but are not limited to) Parity, Jaxx, and MyEtherWallet. As long as one controls the private key for the wallet GNT was held in, said wallet will automatically receive the funds, without any action on the user’s part.
Since users don’t control the private key for exchange-based wallets, each exchange must decide whether they will give users the airdropped OMG or not.
What we don’t know:
The blockheight: this refers to the specific block by which users must have the prequisite amount of GNT in order to qualify for the airdrop (i.e. 3988888 on the Ethereum blockchain for OmiseGO’s airdrop.) This block will determine the date users have to have held GNT.
The proportion of OMG individuals will receive. It is likely that it will be a small amount.
Whether a specific exchange – which controls your private key – will support the airdrop.
When the airdrop will happen. The Golem team stated in a follow up on their Twitter that they are focused on more pressing matters and that it may be some time before the airdrop is enacted.
General considerations regarding airdrops:
As described above, to qualify for an airdrop, a user must have a certain amount of a token in their wallet at a certain date/blockheight, in order to receive another token. Since all three airdrops – OmiseGO, SingularDTV, and Golem – are based on tokens that utilize an ERC20/Ethereum-based wallet, qualifying users will automatically receive the tokens to their wallet.
This point bears repeating:
Airdrops are by definition passive. It will happen automatically. If you have to enter ANYTHING in order to receive an airdrop, you are being scammed. NEVER enter your private key.
Unfortunately, some are learning this the hard way. Since OmiseGO’s initial airdrop announcement, numerous airdrop scams have popped up – including a fake GNT/GNT airdrop – notably via Slack channels or spread by word of mouth. The former case affected a much beloved member of our Ethereum Investing & Cryptocurrency Investing Facebook group. Kori Williams, notable prolific entrepreneur and marketing wizard, broke character by making a simple mistake that cost her big. One sleepy night, she clicked a link that appeared via the official OmiseGO Slack that promised to calculate the amount of OMG she would receive. As prompted, she handed over her private key. In the processes, she handed over her funds.
Example of a fake airdrop scam shared via Slack. Note the fake website:
Again, we’d like to repeat: you never have to do anything to participate in an airdrop. If you had the set amount of funds at the relevant blockheight, you are all set to receive your funds automatically. Never enter in your private key or wallet address, and always confirm the legitimacy of an airdrop by doing extensive research.
Always double check the website of any link. Don’t click on shortened links. Always confirm with a known member of the team via a verified account.
Personally, we at Ethereum Investing are glad to see Golem continuing their pattern of excellent work by opting to give back to the community that supports them. In addition to our faith in Golem, all of us here at Ethereum Investing were early supporters of OmiseGO and think their project is revolutionary. We are thankful for the companies that have decided to airdrop tokens to their users and look forward to future airdrops to come.
Let us know your thoughts in the comments, and make sure to share to help keep your friend’s funds safe!