What Is a Cryptocurrency Airdrop?
An airdrop is a kind of marketing strategy in which startups in cryptocurrency world distribute a number of coins and tokens among wallet addresses for free to make their projects and their cryptocurrencies known. Almost all new startups are trying to find a way to stand out in a crowd and airdrop gives them this opportunity.
people who take part in an airdrop event are usually required to do some specific tasks to get free tokens in their wallet. For instance, these participants are asked to tweet a comment about the company, write a blog post, or invite a certain number of people to join the company community. As mentioned above, the main aim of assigning these tasks is for promotional purposes
It is valuable to spend some time gaining free airdrops which belong to promising projects. These tokens likely go up significantly in value as the project meets with success. Accordingly, airdrop receivers have the chance to make a good profit in a short period of time.
The following are four main types of airdrops:
This type involves transferring a specific number of new coins or tokens to users’ wallet. This act of distributing free tokens can lead to a great promotion of the brand.
For getting these tokens, participants simply sign up for an account and join the project. Then at the time of new token distribution, they provide their wallet address.
As the name would suggest, in an exclusive kind, tokes are given out to a group of people who are connected to a project, or a community somehow. They may also follow a particular website that announces news about upcoming projects and their airdrops.
In this type, recipients are required to do some activities, promoting the project. For example, they need to share a comment about the project on a particular social media.
Sometimes, people who have held a new token in their wallet for a defined period of time are eligible for getting holder airdrops. Therefore, cryptocurrency startups announce that a specified number of tokens will be transferred to the holders’ wallet on a specific date.
Tips before taking part in an airdrop event
When you decide to participate in this event, it is necessary to take some important points into account.
There are scammers who try to abuse token airdrops in different ways. Some examples of this kind of scamming are provided as follows:
- participants are asked to provide their private keys or connect their wallet.
- Some scammers sell the contact information or send the participants a junk mail.
- participants are required to send some amount of money to become eligible for getting free tokens.
The ecosystem is an innovation that is based around providing financial services in the blockchain industry that mainly include:
- Cryptocurrency payment gateway
- Decentralized cryptocurrency exchange
- Decentralized worldwide stock market
- Centralized cryptocurrency exchange
- ICO Launchpad
- Crypto wallet
- De-Fi lending
The project’s objective is to disrupt the financial industry and make it easy for users to access financial utilities efficiently and at a lower cost.