Today, it is possible to make money from cryptocurrency by means of mining, trading, buying and storing, crypto cranes, bounty programs. Another method that has recently become popular is Airdrop. It can be used to earn money and to promote a startup by spending little money on it. In this material we will detail what Airdrop is.
Definition
Airdrop is the definition that comes from the military industry crypto. It’s the name of the cargo that drops a military aircraft to a certain point. There is no specificity, but it is believed that this is what the process was called because of its similarity to humanitarian assistance, in both cases.
In the crypto industry, Airdrop is called the free distribution of tokens or coins. The recipients are those who have registered for the distribution or who have completed a series of mandatory actions. Also, often to obtain new coins, the purse must have a different cryptocurrency, as was the case for BCH and BTC: the first was sent to the second coin owner. Only new projects apply to this way of promoting their own project or start-up. For example, an Airdrop ETH cannot exist because the project is too large and the distribution of free tokens will lead to a collapse in the market, given their cost.
At first it might feel that this way of advertising a project is not quite productive. In addition to the fact that the price of the traded token will decrease because new coins will appear on the market not because of the main, so the process itself is more like spam. However, the practice suggests that Airdrop is an effective promotional move. Its implementation allows to create a kind of rush around the project, helps to attract new clients and investors.
How does Airdrop work?:
- A network (blockchain) is selected on which a new token or koin will be created. If the new cryptocurrency is to be owned by the old cryptocurrency, then the blockchain must be the same.
- The minimum amount at which the minimum cryptocurrency will be poisoned is selected. If participation in Airdrop does not imply the existence of another cryptocurrency, this clause is cancelled.
- Next, the blockchain is parsed according to the specified parameters: either a certain number of coins to get new ones, or simply the necessary list of email addresses is selected, whose owners have completed a number of tasks.
- A single wallet is created to accumulate all the tokens or coins that participate in the Airdrop. After that, a transaction with tokens is created for each received address, taking into account the commissions.
- A specially developed algorithm is used, which is responsible for correctly sending coins to all specified wallets.
What are the goals of the project that conducts Airdrop:
- Rewarding regular customers;
- To attract attention to the project, before the presentation of a new product;
- Attracting new customers;
- Stimulation of existing customers, for its further popularization.
What are the types of Airdrops?
Airdrop can be automatic and stimulating. Let’s analyze each of the types in more detail.
Automatic. This type of Airdrop is used when an existing cryptocurrency has a fork. The holders of the old cryptocurrency get a new one on their purse in the same quantity, they do not have to perform any actions.
Stimulating. This type of Airdrop is used if you need to promote a new product or encourage new and old users. Here, those wishing to participate in Airdrop will have to perform a number of simple tasks that are related to social activity. There may be the following tasks:
- Subscribe to the Telegram channel;
- Leave an email address for receiving promotional mailings;
- Put a like on the desired posts in social networks;
- Communication on thematic forums;
- Make reposts of records;
- Leave comments under posts;
- Join groups and communities
Tasks that allow anyone who wants to participate in Airdrop are simple, so this method of project promotion has become very popular in crypto space.
Advantages and disadvantages
Now let’s analyze the advantages and disadvantages.
Advantages:
- The project that Airdrop is conducting, for a relatively small amount of money, acquires good advertising and promotion
- Airdrop members receive a free cryptocurrency. Of course, some may not rise in value, which means that they can be sold for almost nothing. However, based on feedback from the network, some Airdrop members were able to sell tokens up to $300 in various projects.
- In order to obtain a cryptocurrency, you have to have another or perform a series of simple tasks.
- The time to receive coins is noticeably shorter than that of crypto cranes.
Disadvantages:
- To get a lot of tokens or coins, you need a social media account that has a lot of subscribers. At the time the token is distributed, this is taken into account. So if you don’t have a social media account, you’re hoping for a lot of coins.
- If you consider the previous paragraph, you will have to participate in tens or hundreds of Airdrop in order to make any profit. Yes, the tasks are not difficult, but if done for one project. If these projects are 100, the time costs may not pay off in the long run, because it is far from certain that coins will rise in value.
- As with ICO, Airdrop is often run by fraudsters. We’ve already said that you have to leave e-mail to participate in a coin distribution. It may be followed by an e-mail containing a virus. You can’t tell exactly what he’ll do to your PC, because there are so many viruses, but it will cause problems. It may not be that critical and the project management may simply not pay you the promised coins by using your services free of charge.
- The management of the project that Airdrop conducts may change the terms and conditions of the coin distribution in the process. The most common way of changing conditions is to lower the number of coins at the time of distribution.
Conclusion
We can say with complete confidence that Airdrop for companies is a cheap and simple way to launch a fairly powerful advertising company. However, as an earning option, Airdrop is mediocre – there is no guarantee that the coins being distributed will be worth more than $0.00001.
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