What are Airdrops?
The process through which a cryptocurrency enterprise distributes tokens to the wallets of some users free of charge is referred to as airdrops. Airdrops are usually carried out by blockchain-based startup so as to bootstrap their cryptocurrency project. Additionally, the established blockchain-based enterprises such as cryptocurrency exchange platforms as well as wallet services can also carry out airdrops.
Whenever an airdrop is announced, the user would have to provide a Twitter, Telegram or e-mail account so that they would be eligible for the airdrop. In some cases, the team behind a token will announce airdrops for users that have already hold a specific amount of the token but the term is mostly used for token giveaways which does not have any major requirements.
Also, airdrops with absolutely no strings attached can also serve as a cost-effective marketing tool for future cryptocurrency projects. If an individual suddenly owns a new token, they would likely follow its development and may likewise spread it.
It is however essential for you to remember that airdrops are free of charge. If anyone is requesting for money from you in exchange for an airdrop, such should be avoided immediately. The same is also applicable to anyone that is requesting for your private key.
This is because there have been several fraudulent Twitter posts impersonating virtually every significant figure as well as company in the world of cryptocurrency. Such individuals may likewise ask you to send a certain amount of cryptocurrency while promising you multiple times larger in return.
Why airdrops are beneficial and is good
There are several reasons why airdrops are beneficial and good, some of the reasons would be discussed below:
It’s FREE Money!
Anything free of charge has a higher chance to go viral and this is one of the main reasons why airdrops are a great marketing strategy. Collecting an airdrop helps you obtain a coin which may be useful in future for free.
Huobi organized a Blockchain event in Seoul recently which was setup like a Carnival for users to come together to win tokens. It created a new way for people to learn more about the projects in a fun and engaging way.
The outcome was a vibrant community curious about the companies that participated in the event..
It enhances involvement
Airdrops are very good for companies because they help in creating awareness and encourages people to participate in the promotion of a particular cryptocurrency. Expanding audiences is typically one of the objectives of the companies and airdrops massively help them to achieve it.
It is easy to collect
Nowadays, majority of airdrops asks you to perform a little task to be given the coin. These tasks are usually promotional activities and may involve you posting the link of the developer on your Facebook page or register on the company’s website. This would serve as a promotional approach to increase the audience of the company. Majority of tasks which required to get airdrops are typically very easy to accomplish.
Why airdrops are not effective
As earlier mentioned, there is a desirable quality in the word free. Scammers know this and would use crypto to gain access to the crypto wallets of people so that their funds can be withdrawn. This is why it is crucial to carry out appropriate research before signing up for any airdrop. You should be wary of developer sites that request for personal details such as your private keys.
We have earlier said that you can easily collect airdrops but this is not applicable to all of them. Some of the airdrop may give you a task to accomplish; such may involve bringing people to the community before you would be rewarded. Such reward would be based on each individual brought into the community. This is known as a referral system and the developer has given you the task to market their coin to your friends, colleagues as well as everyone around you. Other kind of hefty requirement may involve you holding other cryptos in some kind of wallet or claiming of coins every hour through a telegram bot.
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