Airdrop

What Is An Airdrop?

An airdrop is a limited-time marketing campaign in the cryptocurrency world. A cryptocurrency project sends coins or tokens to a wallet address to raise awareness of their new digital currency and assist in the early valuation of a token by allowing receivers to exchange their airdropped tokens.

Deeper Definition

Airdrops are a popular way for businesses to fund their crypto ventures. An airdrop announcement is frequently made on a cryptocurrency project’s website, Medium page, or third-party airdrop tracker and then disseminated across social media channels where many cryptocurrency fans can see it.

To be eligible for airdrop, a recipient may need to have a certain amount of cryptocurrency in their account. They may also be required to complete a specific activity, such as blogging about the currency on a social media platform, joining their community, referring friends, or writing a blog post.

Given the fierce rivalry among crypto businesses, an airdrop is a way for a company to distinguish. Some crypto airdrop companies provide user notifications, startup listing services, and various advertising services to help them perfect their airdrops. There are excellent businesses and poor enterprises in this field, as there are in any other.

A key question lingers. What causes this, and why would a team want to consider giving valuable tokens? Consider it this way: You’re strolling down the aisle of your beloved supermarket. The staff present you samples of food to taste, you could take a glance to see what they’re providing and determine whether or not you would like to try it. You take a taste, and it’s rather tasty; you may decide to purchase the product just on that one bit.

Airdrop Example

Ontology airdropped its cryptocurrency, ONT, to NEO investors in 2018, as well as 1,000 ONT to those who just subscribed to its newsletter. Part of the event’s goal was to thank NEO blockchain users for their assistance during the fundraising process. The entire quantity of airdropped coins was 10 million, valued at $42 million at the time and selling at $4.2 per coin. The cryptocurrency soared to over $11 during a deepening bear market, valuing the airdropped coins at $100 million.