What Are Airdrops In Crypto World?
The purpose of this article is giving a clear perspective of Airdrops and the reasons companies conduct Airdrops.
First of all, let’s get into the historical and literal definition of the Airdrop term.
In the war, in places that are difficult to access by land, crates of food and nutrients dropped via airplane to people. Therefore, this action refers to AirDrop. In the world of cryptocurrencies, Airdrop has a different meaning. In the crypto concept, Airdrop refers to free coins are dropped directly into your wallet.
What is Airdrop? What Are the Reasons for Companies to Conduct Airdrops?
As before mentioned, Airdrop refers to a procedure in which a project blockchain distributes or gives away free coins or tokens into the wallets of enthusiasts of the Blockchain. There are 2 types of airdrops;
Surprise Airdrop: An airdrop that comes as a surprise and drops free tokens to individuals’ wallets, without they know themselves in advance.
Promotional Airdrop: An airdrop that companies are announced in advance that performs an airdrop.
(Remember that if you want to learn more about cryptocurrency, you can read our Cryptocurrency Explained guide.)
Anyway, an important question is why companies do airdrops?
Marketing Tool: An airdrop is an advertising and marketing tool to get attention or generate awareness regarding its project. So when users get involved in an airdrop and do it, users will get a stake in that system automatically. Therefore, maybe users want to learn more about the project. So this is the way an airdrop works as a marketing tool and creating awareness.
Driving up the value of that coin or raising funds: Performing Airdrop helps to drive up the value of the coin. So, as a result of conducting an airdrop, the company will get more eyes on its project. Anyway, when people being paid more attention to the project, it leads to an increase in the perceived value of its tokens.
Rewarding loyal supporters: Giving free tokens to supporters and holders is a terrific way for the company to show that they are thankful and appreciative of their supporters and holders for being behind them.
But another reason we should consider is improving their social media and getting more followers by conducting airdrop. It’s a common reason to perform airdrops. When participants’ airdrop share and follow posts of a project, more people being paid attention to the project.
We’ve now covered some reasons behind conducting an airdrop. Of course, there are more reasons which influence on companies to perform an airdrop.
Well, after all, the last question is; How to Get Involved in an Airdrop?
The first thing you need to have is a Cryptocurrency Wallet to receive free coins/tokens. As you know Cryptocurrency wallets are secure digital wallets that store public and private keys and interface with various Blockchain so enable you to send and receive digital currency and monitor your balance. (Read Cryptocurrency Wallet Introducing Guide and Types of Cryptocurrency Wallets Guide.)
The second thing for taking part in an airdrop is finding online services, which provide a list of airdrops with the information which you need to know for distinguishing from scam airdrops.
An example of such online resources includes the BestCoinList website, which provides airdrops list and their project and information with a rating system that allows you to pick up an airdrop, and involved in it.
But there is another question; How to Detect Scammed and Keep Safe from It?
- Pump-and-dump airdrops (Pump and Dump Explained); When a scam airdrop becomes famous by mistake and the value of token drives up, developers get rid of their tokens at those high value for a profit (Dump). Then, after that, the developers disappear, and the project dies!
- Private Keys; if an airdrop asks for your private key, do not doubt that airdrop is a scam. Don’t forget that “Never share your private keys.”
In addition to the 2 cases above, be aware of some projects, which want to access to Telegram handle, Twitter handle, email id, etc. Anyway, we hope that never scams get caught you!
Anyway, an airdrop is a beneficial tool for marketing and driving up the value of tokens, and by taking part in airdrops, you can make money every time you want. But always be careful of scam airdrops. Now it’s your turn. You’ve read this brief guide, what do you think about Airdrops? Do you think they are trustable or not?