How Airdrops Work Cryptocurrency

How airdrops work cryptocurrency

Community building is most important for any start-up, not only the ones in the blockchain space. Proof of community is valuable for ICO's, STO's and IEO's.

If you're not paying for the product, you are the product.

By doing an airdrop or bounty the project creates awareness about their ICO or token.

How airdrops work cryptocurrency

As a result, it brings people to the project that otherwise would not have heard about it. In addition it leads to token price appreciation, since people value a asset they own higher than a token they don't own. This is called the endowment effect.

Furthermore airdrops and bounties create a network of people who own the tokens.

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If you would list the token distribution after an ICO in a pie graph, a large part of the pie is still owned by the Developers or team. Another large part is owned by people who joined the pre-sale.

How airdrops work cryptocurrency

Lastly, a reasonable part is owned by people who invested in the ICO. Therefor, an airdrop adds an extra slice to the pie and that slice will have the majority of people in it.

A free coin also plants a seed in your mind. When looking at cointrackers, you'll see a list of thousands of coins. However, if you own a coin that name is still in your brain.

How airdrops work cryptocurrency

The seed is planted and whenever you check cointrackers and scroll down, the name of the free e-Coin will jump out and people will check how it's doing. If they see an article that the free e-Token is doing well or bad, they are more likely to click it if they own it or previously have owned it.

How airdrops work cryptocurrency

It's just like advertising!

Looking​ ​forward, ​ ​possible​ crypto ​airdrop​ ​developments​ ​could​ ​be​ ​projects​ ​starting​ ​to​ ​gift​ ​tokens​ ​to​ ​users​ ​who hold​ ​tokens​ ​in​ ​projects​ ​that​ ​overlap​ ​or​ ​have​ ​some​ ​synergy​ ​with​ ​their​ ​own.​ ​We​ ​could​ ​also​ ​see​ ​projects encouraging​ ​other​ ​projects​ ​to​ ​airdrop​ ​to​ ​their​ ​token​ ​owners​ ​and​ ​receiving​ ​some​ ​benefit​ ​in​ ​return.

Like we already see happening at the Ethereum, Waves & NXT platforms.

We currently see that projects are concerned about upcoming regulations for blockchain and airdropped coins.

How airdrops work cryptocurrency

Therefore we see a rise in airdrops and bounties that require to pass KYC. At Airdrop Alert we provide a solution for this. KYC with us once and you will be KYC verified for all exclusive airdrops we host.

Introduction to Cryptocurrency Airdrops - TTNZ Airdrop instructions.