What is Crypto Airdrop?

What is Crypto Airdrop?

Airdrop is a marketing strategy that involves sending coins or tokens to an address. We can do this compare with leaving leaflets on the cars of a parking lot, It’s just that the winners of a leaflet can’t sell that flyer because he It has no value to other people. On the other hand, the winners crypto airdropa can sell its prize on some a decentralized or centralized exchange office for one of the most cryptocurrency, and then cash the resulting amount on say cryptomatic ATM. In most cases, the value of the obtained airdropa is almost non-existent, but there is a small percentage of airdrops which pays off multipletimes. For example, one of the most famous decentralized exchange office Uniswap, is its own coin exchange they decided to donate to early users of their services such as providing liquidity or replacing coins on their exchange. Users received 400 UNI that at the time of writing this blog worth just over $2,600, which is not at all small. If the puck let’s look at how valuable these coins were at the peak of the UNI price, we come to the figure of $ 18,000. By analyzing these data We know that it is worth while participating in the most. the number of airdrops in the hope of finding the one that will financially reward.

The most famous Crypto Airdrop

Very likely unexpected data, but the biggest airdrop so far The state of El Salvador. When declaring bitcoin El Salvador’s legal tender has decided on citizens who take over the government’s official wallet to send, i.e. airdropati, 30 dollar value of bitcoin.

How to participate in Crypto Airdrop?

The question you’re all asking yourself now is how to participate in one of the the incoming airdrops. It is important to note that no one is sure. can’t claim how to qualify for an airdrop, but are airdrops “mysterious” that is, we do not know who will make the airdrop and who will to be qualified. There are some conditions that have been necessary in the past for entering the airdrop, so we are guided by them for future airdrops. In the In most cases, the best way is to find different decentralized applications that could potentially make their own coin or token, because it can be useful for users of that application. After you find a decentralized application that does not yet have its own coin/token is necessary to use as much as possible some of the capabilities that this The app offers. For example, if it is a decentralized exchanges you should try to replace some coins/tokens using their exchange office. Transactions will be saved on the blockchain, and when and if the exchange decides to airdrop will see that you were one of the active users and thus became qualified for airdrop.

Why do Decentralized Apps work on Airdrops?

The answer to the above question is first and foremost excellent marketing. Creating a coin or token in itself exposes some decentralized the app and its product, because they stand out from others, but if that coin/token distributed to existing users they will be inclined to additionally note your application in front of other people, this it leads to even greater exposure to your product. This leads to new users, and new users to higher earnings, thus higher prices coins/tokens. Another reason is the possibilities that newly created coin/token offers. For example, all users of some X decentralized exchange offices pay a commission of 0.5% when exchanging coins on that exchange offices. On the other hand, all users who own a token exchange offices will pay a commission of only 0.25%. In this way decentralized exchange office can offer slightly lower commissions in to others, without reducing their profits.

Risks of Crypto Airdrops

When we talk about this topic, it is important to note that there is a great a problem that arose in parallel with the appearance of crypto airdrops. Runs There are many scams in which fraudsters claim that you are the one who winner of the latest airdrop. The only problem that arises is that to receive the prize, it is necessary to log in with a password and a private The keys to your wallet. After you have done the requested you notice that no new tokens have appeared in your wallet, and a little later you lose access because you are “hacked”. In fact you have not been hacked, but have provided your wallet login information scammers. For this reason, it is important to check everything beforehand. than you are applying to collect the prize. Simply Look at e.g. Twitter profile, if on the official profile of the application there is no information about airdrop very likely it is about Trick. Another important thing to note is that no one will search for the twelve or twenty-four words you have written down for recovery wallet, if you lose access, and if someone asks you for the same, immediately You know you’ve been cheated.

Benefits of Crypto Airdrop

The first and basic advantage of crypto airdrops compared to others The way to create coins/tokens is to make airdrop more equal Timetables. The traditional method of placing coins/tokens on the free market leads to the fact that individuals who have a greater the amount of capital they buy larger amounts of coin offerings. On the other hand the offer is distributed to all users, and this leads to It’s a bit more common, given that all users receive an equal amount of coins/tokens. The second advantage is The uniqueness that the project accomplishes after the airdrop. There are numerous decentralized applications (large competition), but those that have The tokens have a kind of originality. They are able to offer some special services to individuals who own their coin and thus attract a larger number of users, because they are simply better than competition in some aspect of their business. Another advantage It’s a reward for the early users of the app who used it while it was still She was in development. Early users are often a source of information for developers about defects that need to be repaired, that is, they use an application with numerous shortcomings, so it is understandable to reward them.

Disadvantages of Crypto Airdopa

The big drawback of airdrops is rewarding in the simplest terms users instead of developers. A developer who is trying to improve the project should be a priority when distributing the newly created in relation to users, however, often the situation is different because for the expansion of the project’s business to better reward users for the marketing effect. We have already mentioned a number of scams that This is due to the appearance of airdrops, but this problem is easily bypassed Check the airdrop data correctly. Another disadvantage that There is a lack of liquidity in the project. the moment of the creation of the token. This leads to a huge drop in price, and it often turns out that the token, just a few days after creation, almost worthless.

Conclusion

Crypto airdrop is a great method for projects and companies to attract attention to your product, highlight some of its peculiarities and offers Something they do better than other projects. We looked at some of the risks associated with airdrops, we have listed some advantages, but also disadvantages of airdrops. What we are interested in is your opinion on airdrops, and have you ever participated in anyone before. Herein you can write to us on social networks (Instagram, Twitter).