Yes! The title of this blog post is correct. We are doubling the prize money for first time winners until the end of the year.
This "bump" in prize money applies to all contests that are announced before January 1, 2012 and have a submission date after October 6th, 2011. So if you submit for a challenge and it is your first time "placing" in a CloudSpokes challenge (see below), you will either receive double your prize money or $500, whichever is greater. The maximum payout is $5,000.
For example, if a challenge awarded first place prize money of $500 and second place prize money of $150, first time winners would receive $1,000 for first and $500 for second (since $500 is greater than $300).
*"Placing" means finishing first, second or third place in a challenge and receiving money. Some challenges may offer first and second place only while other may just have first place. It all depends on the challenge.