Today’s cryptocurrency has become popular. Most people are eager to know more about them and how these new-age currencies can help them financially. Today, we will discuss the least discussed topic, What is Cryptocurrency Airdrop?
What is Cryptocurrency Airdrop?
In Cryptocurrency Airdrop, you are given a lot of tokens and coins for free. Airdrop is designed to attract the user’s attention and get a new user, follower. By airdrop, the user number of that coin and token increases and the value of that coin also increases. Airdrops is considered to be a very effective marketing strategy, as it usually aims to promote in the world of cryptocurrency about a certain product, coin or exchange.
Another advantage of “Airdrop” is that users who had “BUY” the coin in “ICO” before the launch of the coin are given “airdrop tokens” after the project success, now “cryptocurrency airdrop” is very important in the cryptocurrency community. It has been done and many people also take advantage of it, cryptocurrency airdrop is very less time, more and more airdrops are in the promotion time of the project. Higher level crypto airdrop coins are for those people who invest in and support ICO projects, these coins are given by speaking loyalty to them.
Vaping Airdrops is a great way to get digital tokens and can potentially generate some additional income.
To get AirDrop Coin for free, you have to do a little work (according to the project, you will have to create posts, like the page, register, share on social media). And you have to give some personal information such as access to Facebook’s profile and your contact list etc.
Why Do People Give Away Free Coins Via Airdrops Cryptocurrency?
Because it is free marketing / advertising for them. They can create their community by taking their coins and tokens. In general language, if you and any person get coins / tokens in free, then anyone can see more interest in it and join it, so that they can get some money from it. There are many times that “cryptocurrency airdrop” is also done to increase the value / price of a new currency. Crypto_airdrop is a way to build a customer’s database for a cheap price.
If you are not paying / paying for it, then you are the product! Because these projects can collect everyone’s data in exchange for a token whose value is very low.
What are the objectives of Cryptocurrency Airdrops?
- Loyalty Reward
- Word of mouth, free publicity can be done to encourage such people (Free Publicity).
- To get user leads (Acquire Leads)
How to get information on AIRDROPS
Many websites and online platforms have been created for the purpose of informing you to airdrop. Out of these, “ICODROPS” “AIRDROPALERT” This website is good, both these websites give complete information about the upcoming “AIRDROP”, in addition to this, there will be good information on social media on “Reddit” and “Telegram”. If you have to, then you will have to look at these social sites and get updated daily so that you will get all the updated information.
Advantages and Disadvantages of Cryptocurrency Airdrops
Given the immense competition among cryptocurrency startups, an airdrop is an attempt to stand out from the crowd. Some businesses dedicated to crypto airdrops provide startups with alerts for users and listing services, as well as a range of marketing services to fix their airdrops. As always, there are good businesses in this area and bad ones.
Michael J. Casey, chairman of CoinDesk’s advisory board and advisor to MIT’s blockchain research initiative, argued in a post on the CoinDesk blog that some type of marketing is necessary if cryptocurrency is to succeed. “A currency is nothing if it is not widely used. And it cannot be achieved unless people make some cost-effective efforts to encourage widespread use,” he said. Wrote
However, cryptocurrency airdrops have also been warned from others in the industry. For example, Bitcoin Advisory founder Pierre Rochard tweeted that crypto airdrops could be pump-and-dump schemes. That is, the owner of a cryptocurrency can artificially inflate its value in order to make quick profits.
Rochard tweeted: “Beware of scams like:
- Instantly pre-mined tokens for yourself and your friends
- Trade pre-mined tokens with each other to increase the price. Retail investors 4 of the ‘give away’ tokens. Retail promotes tokens for you, dump. “
Who can receive these airdrops?
Airdrop is usually offered only to current holders of crypto wallets, usually of bitcoin or Ethereum.
To qualify for Airdrop, users are required to keep a minimum amount of crypto coins in their wallet. Alternatively, users may need to perform a certain task such as posting about the digital currency on any social media forum, familiarizing people with the newly launched cryptocurrency.
A legitimate cryptocurrency airdrop will only focus on promoting cryptocurrency and will never seek financial investment. There are many companies in which scams involve people sending bitcoins or portions of other cryptocurrencies.