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crypto airdrops meaning

An airdrop is an unsolicited distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. Airdrops are often associated. A crypto airdrop refers to the transfer of digital assets from a crypto project to multiple wallets. The idea is to distribute coins or tokens. Standard airdrop: when crypto projects distributes digital assets to all the wallets associated in its community. For the ApeCoin airdrop, the. APPLE STOCKS BITCOIN

While it is a given and necessary that crypto developers promote their token projects extensively via social media, press releases and crypto blogs, other marketing methods are also explored. Enter airdrops. Once touted as an unconventional form of guerilla marketing, airdrops have exploded in popularity since in the crypto space, with countless projects using the strategy to expedite adoption, encourage the community to help promote a project or as a means of rewarding loyal users.

Additionally, an airdrop may also come as a result of a hard fork , such as what happened when Bitcoin holders received a airdrop of Bitcoin Cash back in What Are Crypto Airdrops? A crypto airdrop is usually a marketing tactic that uses the free distribution of new cryptocurrency tokens to drive awareness and build communities quickly, as well as help to put an early value to a token as recipients may begin to trade their airdropped tokens.

Airdrops are therefore commonly used by startups looking to bootstrap their crypto projects. News of an upcoming airdrop is usually posted on a crypto project's website or Medium page or third-party airdrop tracker, and shared across social media platforms where many cryptocurrency enthusiasts can see. An airdrop involves small amounts of newly-minted cryptocurrencies and targets members of a select blockchain platform.

For example, cryptocurrency startups may airdrop coins to wallet holders of the NEO , Ethereum or the Bitcoin network. In some cases, a recipient may be required to hold particular tokens or maintain a minimum balance in order to be eligible for an airdrop. In other cases, users may need to perform small tasks such as posting about a project on social media.

Note that crypto airdrops are different from initial coin offerings ICO — the latter are intended to solicit investments from individuals, which classifies ICOs in the U. Oftentimes, an airdrop may be followed by an ICO or other forms of token fundraising.

Why Crypto Supporters Love Airdrops Most crypto enthusiasts, especially those with small to no crypto holdings, love airdrops simply because they see them as free money. And in some cases, these free monies could appreciate over time or surge suddenly, providing immense profits at zero capital. Initially, airdrops usually benefit the issuing company more, but recipients of the free coins can occasionally be in for a treat later on.

Here are three perfect examples of successful airdrops. An eligible account received units of the base asset. In part, the event wanted to reward NEO blockchain users for supporting it during its fundraising. Sadly, that was the peak time to sell, kids.

There was one particular address that received a crazy 10 million tokens 9,, during the date of the airdrop, as a reward for its support. Creating Awareness Spreading awareness is the primary reason why blockchain startups conduct airdrops. In the early days of crowdfunding, ICOs took center stage. However, problems soon arose.

A flood of startups emerged during this gold rush, often with only a flimsy and partially plagiarized white paper in hand, oversaturating the market and jading investors. Soon, new projects needed a more alluring and legal method to create hype. The answer was simple. Just hand out free coins. For crypto startups, it was a match made in heaven, since it allowed them to grow their community organically by simply shelling out a small portion of their tokens.

Therefore, they hop from one project to another, dumping their heavy bags after a pump and making huge profits off the back of small-time investors without providing any actual value to the protocol. So users need to be careful. Since they are supposed to be promotional tools, you must stay alert if a project seeks any investments. How do airdrops work? New blockchain-based companies first start promoting airdrops for their virtual currency on their website or a cryptocurrency forum.

After creating awareness, the company sends the coin or tokens to established cryptocurrency wallet holders. Now, you may wonder how the company decides who to send the tokens to. Well, there are a few factors that can influence this decision. Also read: Explained: Why is Ether outperforming Bitcoin? Will the trend continue?

Many companies and startups send the new virtual currency to the wallets of active users of the blockchain community. Some companies might require a wallet holder to participate in a promotional activity like tweeting about the new virtual currency or making a post on a reputed crypto forum. In some cases, the holder might also be required to hold a certain amount of cryptocurrency coins in their wallets to qualify for the airdrop.

Many of these companies will often send new tokens to holders who have ether or bitcoins in their wallets as the bitcoin and Ethereum communities are the largest in the crypto-sphere. Are ICO and airdrop the same? On the surface, initial coin offerings ICO and airdrops might seem similar, but they could not be more different. ICOs are events where a company offers to sell their new virtual currency to investors, who can buy it with alternative coins or tokens.

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Now that you know more about the airdrops crypto meaning, let us talk about how exactly do crypto airdrops work? For instance, if a company creates a crypto game, in order to promote it, they are going to give a couple of airdrops for the virtual currency that is a part of their original blockchain in order to spark interest and get more people to play their new game. How to get free crypto airdrops for a newly released gaming crypto platform you may wonder?

There are a couple of methods. The most common way a company will give away crypto airdrops is by adding their cryptocurrency to your wallet if you do them a small favor like sharing your opinion or a reputable crypto forum, your social media, or blog.

Companies will mostly reach out to you if you happen to have a bigger social media following, but it is not uncommon for them to also make some airdrops crypto Reddit posts where anyone can get some free cryptocurrencies or NFTs that are a part of their new game. While a lot of companies tend to use their own new cryptocurrency for the airdrops, the most popular way to do it is by sending bitcoin or Ethereum currencies to a wallet as they are the highest in value and most used of all cryptocurrencies.

A lot of people seem to confuse the terms airdrop and ICO. This is understandable, as they are both ways to promote a product or cryptocurrency, the main difference is that airdrops tend to be free or promo-for-currency while ICO is usually offered for purchase to investors to help kick the currency off big. Probably the main reason why you are interested in crypto airdrops is that you would really like to increase the size of your crypto wallet with some free currencies and potentially make a profit, so let us discuss how you can get free crypto airdrops.

Unfortunately, there is no exact place to check out where you can constantly get some free crypto airdrops, but instead, there are a couple of methods you can use in order to find them. For starters, it is best to perform regular online searches for opportunities that give free crypto airdrops. Once you happen to find some airdrop aggregators, try following them and sign up for exclusive airdrop opportunities whenever you can.

Finding newly created platforms that are looking for new users often give airdrops to get people started off, while older platforms will rarely do this, hence you should avoid them if you want free airdrops. Finally, if you monitor upcoming projects that are announced and being worked on, you may get your hands on some free crypto airdrops when the project is close to completion, of it some testing is needed from the public before the project is officially released, like a beta test.

Why do crypto airdrops exist? The primary reason for organizing a crypto airdrop is to promote a blockchain startup , project or service. By issuing tokens to users, the team can bootstrap its project and ensure a fair distribution of tokens among its community from day one. Moreover, recipients of these tokens are incentivized to increase awareness and help the project reach a broader audience once the token begins trading on an exchange.

The more interest surrounding the token, the more likely it will rise in price. Airdrops often gain traction by promoting the launch on a project's website, cryptocurrency forums and social media. This is no different from receiving a HelloFresh voucher in your email with a discount code, as those campaigns are designed to bring more people to the platform through a financial incentive. Legitimate crypto airdrops will never ask users to make any investment.

Instead, it is a way to stand out among competitors that have pursued external funding before issuing their tokens. How do crypto airdrops work and are they safe? There are multiple ways to conduct a crypto airdrop: Have users complete one or multiple small social tasks to qualify for receiving the airdrop at a later date. Automatically distribute tokens to holders of a particular asset or balance on the blockchain where the airdrop will occur.

For instance, every address with a balance of 0. Taking a blockchain snapshot at a previous date and letting users claim their airdrop tokens from the project's website through a smart contract. Read More: 4 Ways to Stay Safe in Crypto Because recipients receive "free money" in their wallets, there will be airdrops that are nothing more than pump-and-dump schemes.

More specifically, the creator issues a token and hopes there will be enough hype surrounding it to have it listed on an exchange. Once tokens begin trading, the creator sells their sizeable portion of tokens, crashing the price. Another potential attack vector is the so-called dusting attack. A scammer will send a small amount of cryptocurrency to an unsuspecting user to erode their privacy.

Then, the attacker will track down the transaction activity of the wallet tokens distributed to de-anonymize the person or company operating the wallet. Finally, since airdrops are considered income by the U. Examples of crypto airdrops The cryptocurrency industry has recently seen a few crypto airdrops that took users by surprise.

Recipients did not have to complete any task other than manually claiming the token from the website. The airdrop helped OpenDao grow its Twitter following to over 60,, and more than , addresses claimed the token.

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