The crypto market has become quite competitive in recent years. The market currently has more than 9,000 listed cryptocurrency projects. With all these projects around, it seems like the market is already saturated. However, anything you can ever think of can have its blockchain solution.
No matter how effective a project claims to be, it can only gain value through adoption and demand. That is why various projects have been employing various marketing tactics like social media, crypto blogs, press releases, adverts and other marketing strategies.
Airdrop is the latest marketing strategy. Here is what it is all about.
What are crypto airdrops?
Crypto airdrops is a marketing strategy where an upcoming crypto project gives out free tokens to various users to build awareness and gain market traction. It also helps build a community faster and helps give tokens value as it gets active users.
Airdrops are therefore all about crypto projects looking for the best way to launch actively. Information on various upcoming airdrops can be found on dedicated crypto blogs and other third party airdrop trackers.
Airdrops come with specific provisions such as for holders of a particular wallet. It can also require one to hold a specific token or keep a given balance before they can get the airdrops. It can also need one to complete various tasks like posting about the token on social media to qualify for free tokens.
What makes airdrops popular?
Crypto airdrops are popular among token launching companies and token receivers. For the receivers, it is all about the free tokens. There is always the possibility that the tokens will grow in value over time. This, therefore, provides the ideal base to start trading crypto even without money.
Already, there are various airdrops that turned out to be quite lucrative. For example, Uniswap (UNI) , one of the most popular decentralised exchanges (Dex) , launched its native token through an airdrop to all wallets on its platform that had interacted with the contract at least once (including failed transactions). The eligible accounts received 400 units of the token. Within the first few days, various accounts had transacted the token giving it a value of $2. However, the token then grew and currently trades at around $26.
The same massive gains have been observed in other airdrops like the ones for 1Inch and Ontology.
For the token launching company, it offers an assured market immediately at launch. Something which most newly launched crypto projects struggle with. The airdrops also help create awareness and attract investments. It is a faster way to gain cryptos compared to staking and mining.
Possible airdrop risks
When it comes to the possibility of free money, most people never think much about it. That is what makes crypto airdrops susceptible to hacking and phishing. Various hackers are creating fake crypto airdrops which they use to entice unsuspecting crypto traders. They then collect data that they can use to unlawfully gain access to the trader’s crypto wallets.
Do your due diligence before participating in any crypto airdrop. Also, avoid any site that asks for personal details or requires payments to participate in the airdrops.
Bottom Line
Crypto airdrops is a popular crypto marketing tactic. It gives the crypto companies the needed community and market awareness while users gain free tokens which might increase in value over time. However, stay vigilant for any possibility of scamming.
