Do Airdrops attract investors?

[Mallyx]

Generally airdrops are for gaining the interest of the people. Simple thing is that more people know about a project, more money they'll bring. Also it increases the trust among the investors. If a very good project only has 2-3k subscribers on twitter, chances are investors won't be pleased with that and won't invest in it. But if same project has 30-40k subscribers/followers, it attracts the money.

That's true and not so true,
it only depend of the % of tokens airdropped.
If I'm an investor, and see that 30% of the tokens will be airdropped, I may invest less in the project, because even if 30% guarantee a good distribution, it's a big pressure on the market. On the other side, if that % is too low, less speculators will join the marketing parade.

It's only an example, their is some other parameters to consider when you invest/or join and airdrop campaign.

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[Herostorm]

Sometimes airdrop uses only to gather participants to join their social media to add more members in the community. Investors nowadays are very smart that even you have a powerful marketing team but the content of the project is poor they will still not invest on it.

Yes, I think airdrop is just a fraudulent community, to cover the eyes of investors, they see a large community and they trust and invest in them, I rarely participate in airdrop. Maybe they cheated a lot

[arjen18]

I don't think so because now a days some of airdrops are scam and wasting our time and effort unlike before some of airdrops are very legit and paying airdrops

[leea-1334]

Generally airdrops are for gaining the interest of the people. Simple thing is that more people know about a project, more money they'll bring. Also it increases the trust among the investors. If a very good project only has 2-3k subscribers on twitter, chances are investors won't be pleased with that and won't invest in it. But if same project has 30-40k subscribers/followers, it attracts the money.

That's true and not so true,
it only depend of the % of tokens airdropped.
If I'm an investor, and see that 30% of the tokens will be airdropped, I may invest less in the project, because even if 30% guarantee a good distribution, it's a big pressure on the market. On the other side, if that % is too low, less speculators will join the marketing parade.

It's only an example, their is some other parameters to consider when you invest/or join and airdrop campaign.

Airdrops are also trying to take advantage of two things. Widespread distribution, as wide as possible, to as diverse a population as possible,,, this is so that the second advantage is bigger, which is network effect. Every person who gains the airdrop will probably tell a few more persons, and so on and so forth.

But yes, if airdrop is moving together with investment, then it has to be managed very well, not just percentage of distribution, but manner. If only 1% airdropped but all to scammers or multis, then it is pointless.

[Abeleez]

I read thread on how to choose an Altcoin and noticed that nobody who is looking into investing has even mentioned an airdrop.
So why do so many ICOs give away their tokens if no real investors really are checking the free token giveaways?

Well, that is a simple market strategy because airdrops kind of create traffic, so to say. By giving away a portion of their tokens in the name of airdrops, they draw the attention of every one to their projects and investors are part of the people. After getting the details about such ICOs they invest, so you can't say airdrops are irrelevant. They are meant to publicise the projects.

[BattleZeo]

I read thread on how to choose an Altcoin and noticed that nobody who is looking into investing has even mentioned an airdrop.
So why do so many ICOs give away their tokens if no real investors really are checking the free token giveaways?

the method attracts people quickly. But in the long run good project is more important than airdrop method. Most crapcoins don’t have original project and have no value at all. I don’t even want to have them.

[jacksonmark30]

As an investor,  I care about how solid a project is and whether it has the potential for mass adoption.. During Neo's early stages, I didn't care much about its airdrops or bounties... Same goes for new and upcoming projects I am eyeing such as eloncity, Menlo One, WePower, etc...

[xenomorphe1]

Airdrop can attract investors by telling them that the community of potential investors is very big. If there is nobody in the telegram channel, the real investors might not come.

[icalical]

If you want to buy airdrop token, you will always buy it from exchange, it means that the token already listed on exchange, and when you think that the project development is not like what you expected, you can always sell your token. That is one thing why airdrop better than exchange, if a project from ICO did not develop well, and they are not listed in any exchange your token will be just an ash, you burn your money.

[treetoneman]

It definately does. Airdrops create a community around a project and give you a chance to obtain some tokens without any risk.

[talikila]

I think The airdrops almost help bounty hunters to get money and if the airdrops have big amount of coins or tokens (about 10%-20% of total coins or tokens supplied )then those projects won't attract many investors.

[aragom]

Generally airdrops are for gaining the interest of the people. Simple thing is that more people know about a project, more money they'll bring. Also it increases the trust among the investors. If a very good project only has 2-3k subscribers on twitter, chances are investors won't be pleased with that and won't invest in it. But if same project has 30-40k subscribers/followers, it attracts the money.

That's true and not so true,
it only depend of the % of tokens airdropped.
If I'm an investor, and see that 30% of the tokens will be airdropped, I may invest less in the project, because even if 30% guarantee a good distribution, it's a big pressure on the market. On the other side, if that % is too low, less speculators will join the marketing parade.

It's only an example, their is some other parameters to consider when you invest/or join and airdrop campaign.

after some big icos dropped its value under ico, investors dont enter the icos
everyone in market knows that you can take an ico half more lower price in markets

[eko23]

I think the developer project will give airdrops when he was get an investment, so many ways for developer project to gets investment with give extra bonus and to all people know thats project using airdrop for promotion

[Putunembah]

Yes, Airdrop is indeed able to help gift hunters to be able to add free coin profits to the prize hunters, but air drops now use capital, and sometimes there are many Airdrops that are currently Scam, and I don't think investors will be attracted to Airdrop.

[tabas]

Have you ever gone to a supermarket where there's a hotdog stall that offers free taste. That's also the same with these airdrops, they are attracting people all in all by giving such tokens for free.
That makes these airdrop people announce and tell others that they've found a good token which results them to advertise that project.

Yes I do understand the tasting part and was thinking exactly the same until I started reading BitcoinTalk where non of investors mentioned Airdrops being at least one of their Altcoin discovery channels.

I know that for some ranking sites, there should be established community to get a good ranking, which mostly is acquired via Airdrops. But then it is the same as buying fake accounts to have just a number to get better ranking. I want to see if I am missing something?

What website is that that determines your ranking through the number of airdrops you acquired? or I just misunderstood it?

I think the developer project will give airdrops when he was get an investment, so many ways for developer project to gets investment with give extra bonus and to all people know thats project using airdrop for promotion

Most of the airdrops aren't really for promotion but the news are being scattered quickly when someone who's really with airdrops and started to tell it to his friends.

[entrepmind23]

Have you ever gone to a supermarket where there's a hotdog stall that offers free taste. That's also the same with these airdrops, they are attracting people all in all by giving such tokens for free.
That makes these airdrop people announce and tell others that they've found a good token which results them to advertise that project.

Pretty much this explains the purpose of airdrops. Usually, I can see many coins giving just 10 or 20 coins that may be not worth that much but many are participating in it because it is free. You just have to join telegram community, like their page and follow it as well with sharing to others about the airdrop. When they airdrop to 10,000 people and share it let's say, 1,000 friends or followers per person then 10 million people would be reach because of that airdrop and a possibility of catching an investors eye.

Of course bounties are still better because there is constant sharing of information and being active in community as well but airdrops are still an effective tool for me as well to get exposure and get people to share about ICO if they don't want to participate in bounties since airdrops are just usually one time tasks.

[0xCoin]

I think that airdrops attract attention.
And an increase in attention results in
more exposure. If the project is worth
investing into, it'll attract investors.

[Awan Awan]

Have you ever gone to a supermarket where there's a hotdog stall that offers free taste. That's also the same with these airdrops, they are attracting people all in all by giving such tokens for free.
That makes these airdrop people announce and tell others that they've found a good token which results them to advertise that project.

You are right at this point but smart investors will learn from experience. The experiemce says that airdrop is no more profitable so its not afford to spend money in airdrop. So what we expect from airdrop? Nothing. But as people who want to get free token, airdrop is also good game.

[bit..what?]

Through airdrops a project certainly gets a lot of attention.
But as an investor, it scares me off more.
Why should i pay for something that others get for nothing.

[inanilujimi]

I think airdrop now has no quality even though there are many communities in social media networks, but it will not make investors interested if they do not have real development.