Airdrop: A Short Guide For Beginners
An airdrop is a procedure for distributing tokens to holders of certain cryptocurrencies, for example, Bitcoin or Ethereum. Recently, this strategy has become more and more popular. Since August 2017, airdrops have been experiencing massive growth, and they are already considered the new mania of the cryptocurrency world. Approximately five new airdrops appear on various websites every day, and the number is growing.
Basically, airdrop a marketing strategy and its purpose is to spread information about a product, coin or cryptocurrency exchange. Coins that are dispensed by the airdrop method are similar to free samples of goods in shopping malls.Newbie projects often give out a small amount of free tokens to people in order to popularize themselves, and this is often done in advance of the ICO.
Marketing campaigns tend to be most successful when potential customers and investors receive a product for free. Cryptocurrency airdrops have a similar concept. Most often, such schemes are used as part of an ICO, when blockchain startups transfer free tokens to potential clients. In the past, many companies have successfully advertised their tokens in this way.
Purpose Of Airdrops
Cryptocurrencies are valuable only because people believe in them and recognize their value. The more people owning digital currencies, the more likely it is that they will be widely accepted and their value will increase.
One of the main reasons for using airdrop is in the relatively recently introduced restrictions on the promotion of ICOs, which turned out to be painful. Companies that launch token sales can no longer use either Facebook or Google to promote their projects (although FB seems to be allowing such ads again). Thus, the best way to promote a product turned out to be an airdrop.
There are many reasons why ICOs give out tokens for free, and here are the main ones.
- Popularization: delivery of tokens to as many wallets and people as possible in order to create a strong base of active users who will become real customers. The widespread distribution of tokens is becoming an important point, as many projects deliberately strive for the network effect.
- Raising user awareness: usually, material interest in a particular token is more actively formed after the token is listed on an exchange.
- Raising capital: financing future developments and project expansion.
Types Of Airdrops
There are two types of airdrops:
- Traditional, when free tokens are distributed among the existing owners of certain cryptocurrencies, for example, Bitcoin or Ethereum. Users are rewarded simply for storing or using coins. No response is required from them.
- Bounty airdrops – rewarding users with tokens for performing simple tasks in social networks, for example, for subscribing to Telegram, reposting on Twitter, etc.).
How To Participate In An Airdrop
To participate in traditional and bounty airdrops, users will need the following tools:
- Ethereum wallet, but not one that is integrated with any exchange. This should be an ERC20-compliant wallet with a personal address, as most airdrops issue tokens based on Ethereum. The wallet must be activated, otherwise it will not be possible to get free tokens.
- A Telegram account is a tool that is actively used for communication in the world of cryptocurrencies. When conducting airdrops, participants are often asked to subscribe to the project’s Telegram channel. It is not recommended to unsubscribe or delete your account, so as not to get disqualified and not be left empty-handed.
- Twitter account. The organizers of many airdrops want participants to follow the activity of the project on this social network. Some projects ask for retweets.
- Email. Sometimes an email address is required for airdrops.
- Referral code. It happens that in order to participate in an airdrop, you need to register through someone’s referral link. In this case, it is usually sufficient to enter the participant’s name and email.
Where To Search For Airdrops?
There are several important sources of information about airdrops on the Internet:
- Bitcointalk is one of the oldest and largest cryptocurrency forums. It is convenient to track new projects and airdrops there.
- Airdrop aggregators are resources that study projects for legality and solvency. Examples of good aggregators include Airdrops.io, Airdropking.io, Airdrop Alert, and Airdrops and CryptoAirdrops subreddits.
- Special platforms like Earn.com allow members to register by providing their wallet addresses to participate in a variety of airdrops.
- On the Tokens Marketplace, under the Airdrops category, you can find a list of up-to-date giveaways.
- Specialized chats on Slack, Telegram or Discord.
Searches for “airdrops” and “free tokens” will point to a variety of distribution sites, subreddits and Telegram channels.
Conclusion
It’s too early to say where the airdrop boom will lead, but most agree that ICOs need real users interested in and having access to tokens.
It is important that people in pursuit of free tokens do not lose their vigilance, for example, under no circumstances give out their private keys, do not forget that there are many scammers in crypto realm, and always conduct their own research before connecting to even the most tempting airdrops.