Some say that crypto airdrops are a practice, but they are, in fact, a marketing gimmick which takes place just before an ICO is supposed to surface on the market. The idea of giving away free tokens is always part of a marketing strategy. Crypto Airdrops are quickly gaining in popularity, and here we will learn why.
Airdrops are usually given away to holders of cryptocurrency such as Ether or Bitcoin. Tokens offered free of charge are usually considered to be rewarded. So, be it bounty or airdrop, they are both considered rewards, but the difference is that airdrops don’t require any work from the investors, unlike bounties and bonuses.
If we were asked to define a crypto airdrop in layman terms, we would say that it is sort of a giveaway, which revolves around promoting a certain blockchain and a project based on it. It is also designed to reward premium customers in a bid to guarantee that customers subscribe to this specific blockchain platform.
How do crypto airdrops work?
Airdrop is a moderately new practice in the cryptocurrency market. As a result, tangible rules on the operations are still to be generated. Thus far, airdrops have attained quite a lot of success and popularity within the community. Certain websites showcase the rules, but as the number of sites grows, interested parties must contact the developer for any sort of additional information.
There’s always a team behind such a massive and challenging event, who announces the date of when the airdrop will take place. Once the date comes is known, the team conducting the airdrop clicks a ‘snapshot’ of the blockchain.
How is airdrop gaining popularity?
The key reason behind this growing practice is to spread awareness, exclusively for a new digital currency. The world of virtual currency banks on hype. Typically, potential investors are always on the lookout for exciting offers. Free tokens offer rewards to attract more and more customers to a blockchain project. Announcing an upcoming airdrop creates an immense buzz in the market through the multiple social media channels and other digital talk forums.
An airdrop event out also helps the given project to build an important database, which is essential when determining potential consumers. A few airdrops require consumers to fill out forms online. For example, Universa airdrop asked potential investors, to provide their social media accounts for them to meet the requirements for participating in their airdrop.
Participants must be aware of the existence of all sorts of potentially illegitimate sites and be wary of supplying their personal information to the wrong people. Potential investors must also not disclose their personal credentials to any organization, conducting airdrops.
How can you get information on any ongoing airdrops?
Many online platforms and websites have been generated, all concentrated around informing participants on previous, upcoming, and current airdrops. Also, there is another way to get information on airdrops and it is by religiously following the social media pages of ICO events.
The revolution of the blockchain market
Welcome to the future! With AI taking over every business process, blockchain is also making its way into the business industry. Streamlining the multiple processes of a business is the mission and vision of the blockchain industry. Following this, many companies are coming up with futuristic projects, enabled with blockchain technology. Although airdrops are not an integral part of ICOs in the same way as bounties, there are now many blockchain projects that have announced airdrops during their ICOs. Dozens of crypto airdrops are now floating in the market, and people are very happy to be receiving some free tokens.
Bounties require quite a lot work before receiving tokens, while airdrops are a practice, in which participants are already cryptocurrency holders. So, if you are considering joining a cryptocurrency airdrop event soon, make sure that you go through a reliable source of information and you have read the white paper of the given Airdrop ICO.
ICO marketing is a specialized job. Unless you do your due diligence, chances are high for you to fall into a deep hole.