To distribute tokens to owners of specific cryptocurrencies, such as Bitcoin or Ethereum, an airdrop is used. This tactic has been gaining popularity lately. Since August 2017, airdrops have grown significantly, and they are now regarded as the newest cryptocurrency craze. Every day, there are an average of five new airdrops on different websites, and the number is rising.
Basically, the goal of an airdrop is to spread knowledge about a particular product, coin, or cryptocurrency exchange. The distribution of coins via airdrop is comparable to the distribution of free samples of products at retail establishments. Before the ICO, new projects frequently distribute a small number of free tokens to the public in an effort to gain awareness.
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Marketing campaigns typically have the best results when prospective clients and financiers receive a product gratis. The idea behind cryptocurrency airdrops is similar. During an ICO, blockchain startups give away free tokens to potential customers. Many businesses have used this strategy to successfully promote their tokens in the past.
Airdrops’ Intended Use:
Only because people trust them and see their value do cryptocurrencies have value. More people owning digital currencies will increase their value.
The relatively recent restrictions on the promotion of ICOs, which proved to be painful, are one of the primary motivations for using airdrops.Token-selling companies can’t advertise on Facebook or Google (although FB seems to be allowing such ads again). Thus, an airdrop proved to be the most effective method of product promotion.
Here are the principal justifications for ICOs’ free token distribution.
- Popularization: distributing tokens to as many wallets and users as possible in order to build a large community of engaged users who will eventually convert to paying customers. As more projects consciously aim for the network effect, the widespread distribution of tokens is becoming more crucial.
- Increasing user awareness: Once a token is listed on an exchange, interest in it typically increases.
- Capital raising: funding new construction and project growth.
Different Kinds of Airdrops:
Airdrops can be of two different types:
- Former Bitcoin and Ethereum owners received free tokens. Coin holders and users get paid. They needn’t reply.
- Bounty airdrops (rewarding users with tokens for completing easy tasks in social networks, like joining Telegram or reposting on Twitter, etc.).
How to Take Part in Airdrops:
Users will require the following equipment to take part in traditional and bounty airdrops:
Wallet for Ethereum, but not one linked to any exchange. Since the majority of airdrops distribute Ethereum-based tokens, this should be an ERC20-compliant wallet with a personal address. It is necessary to activate the wallet in order to receive free tokens.
Telegram is a popular communication tool in the cryptocurrency world. Airdrop participants must join a Telegram channel. Unsubscribing or deleting your account could disqualify you from winning.
Twitter profile. Many airdrop coordinators encourage participants to follow the project’s activity on this social network.
Email. For airdrops, an email address may occasionally be necessary.
reference number It often happens that you must register using a referral link in order to take part in an airdrop. The participant’s name and email are usually sufficient in this situation.
Where Can I Find Airdrops?
On the Internet, there are a number of significant resources for learning about airdrops:
- One of the oldest and biggest cryptocurrency forums is Bitcointalk. There, new projects and airdrops can be tracked easily.
- Airdrop aggregators check projects’ legitimacy and viability.A few excellent aggregators are Airdrops.io, Airdropking.io, Airdrop Alert, and the Reddit subreddits for Airdrops and CryptoAirdrops.
- Participants in a variety of airdrops can register on specialized websites like Earn.com by providing their wallet addresses.
- The Tokens Marketplace has a list of the most recent giveaways under the Airdrops category.
- Specialized Slack, Telegram, or Discord channels.
- Searching for “airdrops” and “free tokens” reveals distribution websites, subreddits, and Telegram channels.
The Conclusion:
It’s too early to tell where the airdrop boom will go, but most agree that ICOs need token-interested users.
It’s critical that those looking for free tokens maintain their vigilance. For instance, under no circumstances should they divulge their private keys, they should keep in mind that there are many scammers in the cryptocurrency world, and they should always do their own research before connecting to even the most alluring airdrops.