Hello BTC'ers, this is my second article in a series of free direct-to-reddit articles about cryptocurrency and the communities surrounding them.
Access the article here:
https://www.reddit.com/r/CryptoCurrency/comments/761727/cryptogrinder_5_myths_about_airdrops/Or, read it in a slightly less perfectly formatted version below:
Hello again!
This is my second weekly article, airdropped to you for free! All you need to do qualify is read on...
That's right, this week's topic is...
# 5 Myths about Airdrops
With airdrops becoming an increasingly popular way to distribute a coin early in development, partially due to the latest SEC rulings on ICOs and maybe just maybe due to the popularity of some really popular airdrops*, it becomes a good time to start looking at some common myths that are associated with the phenomenon of the airdrop.
(*Full Disclosure, I am participating in the DeepOnion airdrop.)
##Since airdrops are giving away free money, it isn’t worth anything.
An easy to fall into trap is that, as an airdrop is a free gimme, then what is being given away is of no value. I’d disagree immensely with this. Many industries have, in fact, profited greatly from the giveaway or pay-what-you-want strategy. Looking at books, for example, and would you believe that ‘The Martian’ and ‘John Dies at the End’ were both originally posted for free on the internet? Now they both have Hollywood adaptations. A coin distribution doesn’t have to be all that different. With great tech, a free initial giveaway can greatly increase value of a project!
##Airdrops are giving away free money
Now, despite the first myth I just talked about, there is a second myth that even goes so far at to make refuting the first one pointless. Airdrops aren’t free! They have rules, they take time, and are a part of the advertising. Those people that spin signs are sort of like airdrop participants. They have rules about when and how often they need to spin their signs, it takes time to spin the sign, and they advertise a business. The great thing about an airdrop participant is, instead of being paid in cash, the airdrop participant becomes a part of the project with ownership of the coin. The airdrop participant then actually cares about the future of the project and will incorporate that care into the rest of their lives, while the sign spinner will very well likely trash talk the company to any willing to lend an ear.
##Participants Deserve the airdrop money
“Where are my XXX?” You’ll hear that a lot in any forum from people that make mistakes. Mistakes such as being annoying, instead of helpful, posters. Mistakes such as not even using a clear signature. Really really dumb mistakes. Now, this is more towards people that are thinking about joining airdrops than the dev team, but… yeah, you don’t deserve this money, you earn it. You earn it bey following rules, being courteous, etc. You don’t earn it by making pictures nobody asked for (though that is nice) or the Steemit article you wrote (nice also). You earn it by following rules set up by the dev team. If the dev team wants Steemit articles or pictures, they’ll hold contests, or you know… you could be happy to be supporting a coin you’re invested in because you like it.
##The price will plummet after the airdrop
The logic goes that if you aren’t getting any more airdrop money you (and everyone else) will just dump the coin on the last day of the airdrop. This especially goes for coins that require you to hold onto X% of the airdrop reward until it is over. However, this logic ignores a simple fact: that the price fluctuates the ENTIRE airdrop. Eventually, the price will go down to nothing if the project is not a good project. Dumpers and non-believers don’t need to wait until the end of the airdrop to dump their coins - in fact, they shouldn’t! And so, the logic goes, people will be dumping their way out of the airdrop the ENTIRE length of the project. You might even see a wave-like price pattern, with new highs followed by dumps.
At each juncture along the way of the project, ask yourself if the dev team is delivering. Are they doing anything other than offering an airdrop? If the answer is yes, hold, if the answer is no, what are you waiting for to get out?
And so, if you find yourself at the end of the project, why dump then? Sure, a few will dump at the end, some have every week previously… how many are really left? If the dev team is doing a good job at knocking out dumpers each week, there really really shouldn’t be many. The final holders, especially in a POS project, will probably just want to hold and stake… just as they’ve been doing all along. A few might wish to take some out now that they are freely able to, but you can’t expect the dip to be too high. Especially if the dev team has been professional, continually in touch, and remains active after the airdrop.
##There is no reason to support the project if you aren’t eligible for the airdrop
Many people find themselves not able to get into an airdrop, so they abandon any interest or developments for the project altogether. The fact is, though, that anyone can be equally important for an airdrop project. If you find the project interesting, it is still worthy to get involved… even if just for a token amount. You can still have a stake in the end result by purchasing early, and perhaps the entry rules or requirements will change for airdrop participants as the airdrop goes on. Whining that a project is worthless just because you aren’t being given “free” money for advertising it is a waste of your talents.
[Thank you again for reading, please ask any questions and feel free to suggest a future article topic.]
