The crypto Airdrop is a practice in which the existing crypto currency holders such as Bitcoin receive reward in the form of free token. In simple words, it is a giveaway which aims at promotion of a particular blockchain. Loyal customers also get rewarded in order to ensure that they continue to subscribe to a particular blockchain platform.
Lets under what is crypto airdrop in detail and how it works.
What is a crypto airdrop?
In Few instances, you may also be asked to identify yourself via the Know your customer verification in order to participate in the program.
Crypto airdrops are also offered as a reward for signing up for a newsletter, following the project’s social media pages, or another way to bring attention to the brand and attract more people to the platform.
What are the pros and cons of crypto airdrops?
- Crypto airdrops help to support your crypto portfolio without directly buying the digital assets.
- They could also help you in getting on the ground floor of a new platform.
- You could spend more time looking for and then claiming airdrop opportunities, only for the price of the airdropped coin to drop before you have a chance to sell.
- There also underlies the risk of giving money or sensitive information to a fraudulent platform in worst scenarios.
Crypto airdrops are worth pursuing suppose you’re a crypto enthusiast who likes to keep up with new developments and actively managing portfolio on a regular basis.
How it Works:
The developing team announces the date it shall undertake the airdrop. Once the date materializes, the team handling the airdrop takes ‘snapshot’ of the blockchain, resulting in holders of the relevant cryptocurrency receives free e-tokens. Many of the crypto blockchains announce an airdrop beforehand and avoid surprise airdrop to give a boost start to their projects.
The main motto of the crypto airdrop is creating awareness for a new digital currency. Crypto market heavily relies on hype. People are in search of new exciting things and free token serve as an incentive to attract more crowd in to a project. Making an announcement of the airdrop gives a needed buzz to the project on social media and the crypto market.
Valuable database is acquired which is essential for identifying potential customers, Airdrops thus proves helpful in this aspect. Few airdrops require filling of several online forms. However, Clients must always be beware of the scam sites and they should only give information to official websites. They should never reveal their personal login information to any airdrop organization.
Types of Airdrops
In the bounty Airdrop, the wallet user needs to engage himself in some sort of promotional activity in exchange for the airdrops. This is similar to the barter system.
Exclusive Airdrops :
Loyal users of a crypto platform get exclusive airdrops. These airdrops are more like rewards.
Holder Airdrops :
Just like its name, the holder airdrops are provided to wallet users for holding particular cryptos. They are usually popular ones like Bitcoin or Ether.
How to get Information on Airdrops
Many websites and the online platforms are created with the aim of providing information about previous, forthcoming and ongoing airdrops. A good example is Icodrops and Airdrop alert, two of these give relevant detail on upcoming airdrop. Tracking various social media platforms of project you’re interested is another way to follow airdrop.
Final words :
Airdrop is being relatively new but vividly used these days in crypto market. Other than regular trading method by investing own money, one can earn huge profit through Airdrops — by providing free coins or tokens to users with public crypto wallets to promote a new virtual currency. The usage of crypto wallet is a marketing tactic which is employed in crypto market to incentivize the use of their platform.