What is airdrop?To find out what an airdrop (literal drop) is, one must first become familiar with the term token. A token is a representation of a specific value, a virtual token, confirming ownership. It can be a voucher, a gift card, an access key, and in cryptocurrencies it means a unit of some value that connects users, products and entities that release them.Tokens can represent a particular cryptocurrency. Often they will be, for example, a reward or loyalty point for employees, people who mine cryptocurrencies, etc. They can also replace fiat money (Latin: fides - faith), i.e. money that is backed by trust in the issuer (now most modern currencies). It is tokens that are very often used in the airdrop system. Unlike coins, they do not have their own network and can use one of the dedicated platforms. Airdrop - definitionAirdrop is a system that involves the distribution of free cryptocurrencies, often in exchange for performing certain activities, such as digging (mining) them. In this way, they are distributed on a large scale. Airdrop crypto are completely free, unlike an ICO (initial coin offering), which is a capital raising to start, for example, a new start-up (new innovative enterprise). "Airdrop" is designed to reach people's consciousness and advertise a particular product. It is desirable to involve customers in the promotional process. This is a planned marketing action.It should be added that in order to receive airdrops, often a person should already own a certain amount of a given cryptocurrency. However, sometimes it is enough to recommend it to friends or family and create a chain of related people. How is airdrop crypto distributed?Although airdrops are free products, organizers can make money from them. Thus, they create the so-called hype, or created hype, by prior announcements of the new product. This is linked to a tightly planned and intensive promotional campaign. Promoters try to make the hype (excitement) of a product, such as a new cryptocurrency, last as long as possible. This can be done precisely by using airdrops, which are an excellent marketing technique. They allow you to gauge how potential customers are reacting to your product, while expanding your reach and building your community.Airdrop ー advantagesIn addition to fulfilling the aforementioned goals, free "airdrops" also provide wider distribution of the product. This is because the centralization of currency, on the one hand, gives rise to temptations to create a market to suit one's needs. The idea is to create a sense that a particular cryptocurrency is within the reach of almost every person. Whether or not the overall amount of a given virtual currency will later be artificially limited is a separate issue. E.g., this is the case with ethereum (ETH) and ethereum classic (ETC), where the former has no digging limit (it can grow indefinitely), and the latter 210.70 M ETC.The term breeding comes from the English word hold. The idea is to keep the digital "money" in your portfolio for as long as possible. It is the opposite action to trading, i.e. buying and selling quickly to make money on minimal increases. Hodlers hold cryptocurrency until they find it profitable to sell it, such as during an upward spiral in asset value. Airdrop can be a reward just for holding tokens for an extended period of time (a reward for loyalty). Airdrop - how to get it?To get airdrops, it will be necessary to have a cryptocurrency wallet, compatible with the standard, such as ERC-20 (Ethereum blockchain), and a social media account, so that you can, for example, provide a link to the project page. In addition, you may be required to own the currency in question and/or share a certain post, register on the site or do other things. Note that scams also happen, and such activities as asking for money or sharing private keys should raise suspicion.Airdrop - typesNot everyone knows that airdrops can vary. There are several types of them.An ordinary airdrop does not require any special action. Typically, organizers only request that you enter your information, such as your email address and name, in the newsletter. Holder airdrop ("airdrop" for the holder), as the name suggests, requires that the person's wallet already has the coins in question. If this is the case, the holder will receive the reward in proportion to his or her holdings. Bounty airdrop, or "airdrop" as a reward. This type requires more activity from the user, usually social, such as recommending a project page to other people. Airdrop - "airdrops" that have been successfulSome airdrops have been great failures, but there have been some that have successfully entered the market. One of them was BDR. With a properly designed campaign, the first "airdrop" of the Bread token, designed to reduce fees, lasted only two hours. Other free airdrops were, for example, Minereum (MNE), which was worth as much as $13 a "piece" at one point, or decred (DCR). At the end of 2015, the distributor gave away more than 800,000 coins worth more than $400,000 at that point. Other such successful initiatives include those from the BitTorrent Foundation (BTT), the Squeezer platform, or the Stellar Development Foundation (XLM).Airdrops are a good way to promote your product, but not every "airdrop" will be successful. For the user, they are a method of acquiring tokens that can translate into tangible value in the future. |