Airdrop: What, why and how

[Nikola282828]

As the blockchain industry develops, new terms become commonplace among those who work in this field. In the field of cryptocurrency, the word airdrop has acquired a different meaning than what is known to all in military circles. In the blockchain world, the term "airdrop "is close to the term"gift".

What is airdrop?

Airdrop is the process of distributing tokens to blockchain wallet users free of charge. This method is typically used in start-UPS; conducting the primary offering of coins (ICO), as a tool to promote the project and increase brand awareness.

In addition, airdrop can take place at the fork of the cryptocurrency. Examples of a situation where Bitcoin users have received Bitcoin Cash coins and Ethereum Classic users have received Ethereum tokens in an amount equal to the number of Bitcoin and Ethereum coins on the holder's account.

What is airdrop for?

Airdrop is carried out for several reasons. The main ones are the following:

Loyalty promotion: free tokens are distributed as a reward to users of crypto exchange for loyalty to the platform. So it was in 2017, when Binance distributed 500 TRX to its users.
Marketing: Airdrop is used by companies to attract attention during ICO and to encourage investment in their crypto-tokens. Also, the free distribution of tokens often occurs when a new cryptocurrency is launched, in particular when it is the result of a fork (for example, the above-mentioned airdrop Bitcoin Cash).
Decentralization: Airdrop can help create a higher level of security for the network and its users. For example, OmiseGO distributes a significant portion of its tokens to Ethereum users.
How does airdrop happen?

Typically, two methods are used:

Planned: airdrop is reported in advance as part of a marketing strategy to advertise the project and arouse interest in the crypto community.
Unplanned: Unexpected free distribution of tokens can also generate interest in the community, especially when it is a well-established cryptocurrency.
Where can I find information about airdrop?

There are many sources, such as:

social media profiles;
the blockchain and the crypto forums;
crypto news sites and applications
From these sources you can learn about the current and popular airdrop. In addition, there are two websites with interesting and reliable information about ongoing token distributions-Airdropalert and Airdropaddict.

Information can also come from the companies themselves through social networks and press releases.

Security and fraud

Like any other new technology, blockchain technology attracts a large number of scammers and airdrop is no exception. Therefore, it is necessary to check the information about the distribution of tokens, especially if you heard about it from advertising. You should never tell the secret keys for access to personal data or to transfer funds.

Conclusion

Airdrops can be a useful practice to raise awareness about a new token or project. They contain such an advantage as the desire of users to invest in a new project and the opportunity to remain loyal to the existing ones. But as with any technology, it is very important to beware of scammers who are trying to cash in on your own earned money.

[Bonanzabits]

Today, airdrops are not the best option for earning - too many projects fail or are simply scam. Pay attention to the Twitter bounty campaign, in there's still have money, but due to the latest news, it will not last long. I think so..

[klebsiella]

What?
- Airdrop is a process where a certain project distributes tokens to users for free. Sometimes is surprise but mostly announced.
Why?
- Part of marketing strategy, some kind of free advertising. To create awareness and bootstrapping a new cryptocurrency. Also as reward for customers and to acquire valuable lead database.
How?
- How it works? Depends on the project, different project, different set of tasks to complete and rules to follow.

[vladuch1]

Today, airdrops are not the best option for earning - too many projects fail or are simply scam. Pay attention to the Twitter bounty campaign, in there's still have money, but due to the latest news, it will not last long. I think so..

Airdrops really a good way to earn money. But he does not bring as much money as a bounty campaign. Now there are a lot of fraudulent projects in this area, but the bounty campaign is still a good method to earn some coins.

[Cmoh]

Airdrop is nothing but the token that is distributed free of cost having no work or the task. Maybe this is another way of promoting the company's ICO for the fundraising. But, till now I have nothing get as I had already signed up for many Airdrops. Can't understand whether it is legit or not.

[rumexx]

Airdrop is the backyard way of carrying out ICO. The promoter of the token will use Airdrop and give out the token free but with some little amount of Ether which they claim to be gas to send  the airdropped token. Some will make it compulsory for you to make donation of certain amount of ether for you to get the free token. While some keep thir promise others will just varnish when they receive the said donation without fulfilling their own part of the deal. Airdrop can be good or bad.