A crypto airdrop is the distribution of tokens or coins from a blockchain project to its community members. From an economic stand point, it’s an effective formulation for project marketing and promotion. Let’s find out how does one facilitate entry into the crypto world via these airdrops.
You must have heard of “promotion” and “advertising”. If you can relate to these two terms, then you know easily what cryptocurrency airdrop is. It promotes a new crypto coin when it is out in the market. The makers or creators of these coins send small amounts of the coins to the wallets of members active in the blockchain community just to become aware of the coins. This is also done at times in exchange for favours from them. The favours would include retweeting posts by the company to make the consumers aware of the coin.
Understanding In-Depth Cryptocurrency Airdrop
So now you know cryptocurrency airdrop, which, in reality, is nothing more than promoting a new coin just out in the market. The makers are simply advertising the coin through active blockchain users just to promote the coin so that they find more takers. The creators of the new coin only intend to increase their customer base by promoting the coin through the users instead of doing it by other means. But this is done only after it is listed on an exchange as an ICO or initial coin offering.
These new coins are advertised on social media, company websites, and among users. But if you think the coin will be sent to the wallet of any member of the blockchain, you are wrong therein. This is because they understand who can promote the coin very well. Simply put, you must be a frequent crypto coin user. This again means that you have to be an existing crypto community member.
Who Qualifies For A Crypto Airdrop?
You already know that you qualify for an airdrop if you are an existing crypto community member, but just being a member is not enough. You must hold on to a certain number of coins in your crypto wallet to qualify for the airdrop. As soon as you receive the coins in your wallet, you are expected to tweet about the coins on your social media accounts, and to the people, you connect with daily in the crypto market. You will also be required to write blogs and other posts related to the coin.
Instance Of Crypto Airdrops
Crypto airdrops have been associated with this market ever since they received a boost. The native airdrop was recorded back in 2014. And it has been noted that airdrops have given 50% of the total tokens in airdrops.
There have been many instances of crypto airdrops in the past. But the most standing example is that of Auroracoin. This was projected to be Iceland’s national cryptocurrency of Iceland and thus, in the entire airdrop by the company, the residents of Iceland alone benefited from it. They received a total of 31.8 AUR for each citizen.
The Variety Of Airdrops
If you analyze crypto airdrops, you will understand that there are mainly three types of airdrops. They are other types of airdrops as well. They are:
- Bounty airdrop
- Exclusive airdrops
- Holder airdrops
Other types of airdrops include:
- Standard airdrops
- Exclusive airdrops
- Raffle airdrops
The Process Of Crypto Airdrop
The entire procedure starts as soon as the company derives a new coin, and they think an airdrop is required. They will first decide on how to go about their airdrop procedure and who is eligible for them. It depends on their marketing strategies and the need for incentives to market and spread awareness about the new coin.
Most of the time, these airdrops are limited to the wallets, but at other times, they are sent to members whose email addresses have been found by some means or the other. They then collect information on people whom they think are eligible and interested. Sometimes snapshots of certain criteria are identified and sent to them. For example, if someone has at least 1000 tokens, he is also sent an airdrop. Even if that person makes more transactions or stops transacting, that will not impact the airdrop.
These are then made possible through smart contracts. And once a person receives an airdrop, the company will make the airdrop public to make their coin and its feasibility known.
So if you have a quite sizeable crypto balance, then you will receive an airdrop if the company views you as one of their eligible candidates. But be assured that you are safe with Yuan Pay Group if you ever make a foray into the crypto market.