An Intro to Airdrops

Oct 14, 2018   |   by Hermione Daguin   |   Basics & Beyond

Airdrops are a marketing strategy that new and established cryptocurrency companies are using. The process consists of distributing free cryptocurrency tokens to customers’ wallets. Start-up blockchain projects use this process to get their networks jumpstarted and established blockchain projects use it to increase attention about their projects and reward loyal customers.

The main reason to create airdrops is to create awareness for a project. Airdrops spread the news about a project and get the blockchain community interested in it. Airdrops that are announced several days prior to the release date generate more talk because of the anticipation for the free tokens.

Another reason airdrops are used is for rewarding loyal customers. Like discounts and vouchers, airdrops can be used by blockchain-based companies to reward customers for continuing to do business with the platform. The reward will become an incentive for the customers to remain on the platform.

Airdrops can also be done to generate a lead database. In marketing, a lead can be defined as a contact for a potential customer. A large amount of leads is necessary in marketing for business. New blockchain-based companies can ask potential customers to give valuable user information in exchange for free tokens. The new information can then be used to develop targeted marketing strategies.

Airdrops can be carried out as a surprise or they can be announced days in advance. The way it is carried out is determined by what the company is trying to accomplish with its airdrops. Surprise airdrops can create an air of confusion throughout the blockchain world and usually causes a higher level of talk in online forums about sudden appearances of a token in user’s wallets. This strategy is more often used by established projects. These tokens are given to users that are active in the crypto project.

However, established companies can also announce their airdrops beforehand. In announced airdrops, established companies often require the users to already have coins in their wallets. These users will receive bonus coins proportional to the amount in their wallets. This encourages users to buy more of the coins in hopes of them being used on the network.

New companies prefer to have an announcement beforehand so they can get a buzz started about their project. With the announcement days before the event, the talk about the new project usually lasts longer which helps start-up companies to put their name out there. There’s not a specific group of people targeted for this type of airdrop. More active users don’t automatically get a higher amount than others. Companies will send out a list of requirements which anybody can follow and have a chance to gain something during the distribution.

Participating in Airdrops

It’s a simple affair to participate in airdrops. Everyone who’s already a member of the blockchain community has the potential to receive airdrops if they follow the companies’ guidelines. Most companies require an active crypto wallet and many of them will check for human activities before distributing any tokens into the wallet. Since most airdrop tokens are ERC20 tokens, it’s wiser to have a wallet that is ERC20 compatible.

Signing up for accounts that provide information about cryptocurrency airdrops such as telegram groups, twitter accounts, and cryptocurrency airdrop forums will increase your chances of receiving them. Some companies do ask to be followed on twitter and for you to provide an email account that can be verified. Forums like Airdropaddict keep users informed about upcoming cryptocurrency airdrops and the qualifications needed.

Finally, airdrops can be scammed. It’s important to be vigilant about false airdrop campaigns. Some are used to hack wallets and steal private keys. To keep away scammers, avoid sending your private key to anyone or any company. You should be aware of any companies that ask for money in exchange of the tokens because airdrops are free of charge. Also, check for an official announcement on the company’s website and social media accounts.

Hermione Daguin

Hermione is a Haitian-born writer who has been living in the USA since 2010. She earned her Bachelor’s degrees in English Literature and Interdisciplinary Studies at Florida International University. She has done both creative and technical writing during her years in the writing industry. She’s currently pursuing a career in the medical field.