An airdrop for a cryptocurrency is a procedure of distributing new tokens or coins by awarding them in a certain proportion to existing holders of a particular blockchain currency, such as Bitcoin or Ethereum etc.
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3 min read | 01/02/2019
An airdrop for a cryptocurrency is a procedure of distributing new tokens or coins by awarding them in a certain proportion to existing holders of a particular blockchain currency, such as Bitcoin or Ethereum etc.
PROCESS MECHANISM
There are two major types of airdrops:
a) the ones that come as a surprise
b) the ones that are announced beforehand.
An already established blockchain-based company may choose to go the route of the former rather than the latter. Getting to know about it might depend on how involved one is in the crypto community. These are the types of airdrops that occur and have people commenting on online forums that their wallets have been credited with coins and no one is the wiser as to where the coins came from.
As for blockchain-based startups, they mostly favor the route that involves pre-airdrop announcements to get the buzz going. Since the aim is often to bootstrap the project, the airdrop process usually consists of the completion of many tasks by the user to qualify for the airdrop. When the date of the airdrop arrives, the project will release the free tokens to the users who are eligible for it.
HOW TO GET INVOLVED IN AIRDROPS
Getting involved in airdrops requires access to information and the ownership of a cryptocurrency wallet to receive the free coins. The first step is to sign up for online services that provide timely information about cryptocurrency airdrops. These include websites, Twitter accounts, Telegram groups, as well as online cryptocurrency airdrop forums. Some examples of such online services include Airdropaddict and Icodrops.
These services provide vital information that will help users stay informed about upcoming cryptocurrency airdrops. They also provide information on the qualifying criteria to participate in the airdrops.
COMMON QUESTIONS ABOUT AIRDROPS
Most airdrops are related to a particular ICO. It arises when a company launching the first (initial) coin offering offers some of its coins to those interested in virtual currencies for free as a promotional move. Sometimes it may also require participants to complete simple tasks.
This is highly dependent on the virtual currency involved. However, there are organizations like the Blockchain Education Network that organize airdrop events to create awareness and also introduce new people to digital currencies.
It is a basic requirement that one ought to have the relevant virtual currency, such as BTH or ETH, in their electronic wallet if they are to successfully participate in an airdrop.
CONCLUSION
It is often said that in the product promotion world, cognizance marks the inception of a buyer’s journey. According to Psychology experts, you’re more likely to buy something you’ve seen or heard of before as opposed to something you’re unfamiliar with. It’s safe to say that airdrops have utilized this concept more than successfully.
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