CRYPTOCURRENCY AIRDROPS INTRO
Cryptocurrencies are sometimes AirDropped, i.e. the blockchain project distributes free tokens to participants.
The criteria for participation often reflects the motivation for the blockchain project to so AirDrop tokens. With some cryptocurrencies, e.g. Stellar Lumens and OmiseGo, AirDrops require proof of eligible cryptocurrency ownership at a particular time (“snapshot”) of the blockchain project’s choosing. Ethereum and Bitcoin are most often used to fulfil the “snapshot” criteria.
Other, often smaller, AirDrops require social media promotion or contacting a member of their team on a forum. This type of AirDrop has gained popularity since October 2017 wherein a form is normally sufficient to receive free tokens. The primary motivation hereunder is marketing.
Blockchain projects offer free tokens via AirDrops for the following major reasons:
- ICO / token awareness generation which leads to price appreciation via the endowment effect (people ascribe more value to their possessions);
- Community creation of token owners which diversifies token ownership; and
- Solidifying claim to a token name and / or concept through coin listing recognition.
While some may believe AirDrops to be worthless this is simply untrue. Byteball distributed AirDrops to Bitcoin holders every month – the price of Byteball soared past $900 per Byteball in mid-July 2017. Similarly, OmiseGo AirDropped free OMG tokens to Ethereum holders – the price of OMG tokens surged past $11 in September 2017. Most recently, eBTC AirDropped 2500 eBTC tokens per participant – on the first day, its price rose to $0.80 per token; representing a $2000 gain for AirDrop holders.
How to stay informed?
Regularly check WeViveLive;
NEED TO ADD GRAPHIC
Nouvive: Home of Crypto Beginners, Traders & Investors. Nouvive provides Cryptocurrency trading news, Analysis and indicators for beginners, traders and investors.
Information on these pages contain speculative statements that involves risks and uncertainties. Crypto-Assets profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell. Nouvive does not in any way guarantee that this information is free from mistakes, errors or material misstatements. It does also not guarantee that this information is of a timely nature. Crypto-Assets involve risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing or trading are your responsibility alone. For more information, please view the Risk Warning Below.