AIRDROP: A Passive Way to Earn Free Crypto
A passive strategy to adopt to earn free coins
A passive strategy to adopt to earn free, yes you heard that right, free coins is called AIRDROP.
Cryptoverse is a fast-growing universe with new features and tools adding rapidly to the blockchain ecosystem. Cryptocurrency airdrop is one addition to the list.
‘Airdrop’ is a simple way to ‘drop’ digital assets such as coins into someone’s wallet through the ‘air’, thus getting the term. Bear in mind to not confuse this tool with the ICOs, as during ICOs the currency is bought using alternate cryptocurrencies or tokens or fiat currency.
Through airdrop the token is sent into the wallets of eligible users for free and not as a purchase. This engagement generating marketing tool to spur adoption, aims to build community and create a large amount of awareness connected to the currency.
Crypto airdrop is a versatile tool but it is mainly used in the marketing and promotion of a newly launched digital currency. Small amounts of coins are airdropped — transferred into the wallets of users for free or in exchange for promoting it on social media channels.
This generally involves following the official coin account on social media channels, retweeting any posts from the company account, sharing or retweeting the project’s activity or signing up for updates. The potential return for the project team can far outweigh the total cost of airdropping the tokens for free.
Although airdrops are only available to eligible users, it is rather easy to stay on top of the bottom line. In order to identify as an eligible user, one needs to get a wallet that accepts a wide range of coins and needs to hold a small quality of the base coins such as ethereum, bitcoin or EOS as most of the new projects are built on or forked from these coins.
Furthermore, airdrops sometimes require information from the users such as email address and twitter handle. So airdrop can also be used by projects as a data collecting tool to identify the users interested in airdrops and store their data to utilise it in the future for the upcoming airdrops.
With that being said, let’s dive into the pros and cons of this marketing tool to analyse if it’s beneficial or just another failed strategy to gain clout.
1-Airdrops are a fun and effortless way for the recipients to collect free tokens or coins with minimum effort involved
2-Airdrops are often an essential tool for the issuers to create and build loyalty towards their token
3-A new token introduced into the market with a low price point can see an exponential increase in its value when airdrop comes into play, also bringing in thousands of new users to create buzz about the token by talking about it on multiple platforms
1-Although airdrops are rather useful as a marketing tool, they have also been used in scamming users by sending phishing emails to the user asking them for their personal information such as the private key which can be used to take possession of the cryptocurrencies being held in that wallet
2-Not just that, sometimes when a user links their wallet to an non-credible website, there are chances that the website is a front for scamming the users to gain control over their assets by transferring all of the funds away from the user’s wallet
3-Also, airdrop is a tactic adopted by a few issuers to attempt the ‘pump-and-dump’ scheme where the prices of those tokens are artificially altered to generate a quick profit.
With that being said, airdrop is a rather unique tool when it comes to cryptoverse. It has the potential of growing genuine tokens exponentially, benefiting its holders and issuers alike.
So it is important to DYOR before engaging in any upcoming crypto airdrops to avoid any losses. But is does have potential as a passive coin and therefore income generator.
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