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What Is a Cryptocurrency Airdrop?

By Teresa1995 | DigiLife | 10 Apr 2021


An airdrop, in the cryptocurrency business, is a marketing stunt that involves sending coins or tokens to wallet addresses in order to promote awareness of a new virtual currency. Small amounts of the new virtual currency are sent to the wallets of active members of the blockchain community for free or in return for a small service, such as retweeting a post sent by the company issuing the currency.

 

Understanding a Cryptocurrency Airdrop

The airdrop is a promotional activity typically performed by blockchain-based startups to help bootstrap a virtual currency project. Its aim is to spread awareness about the cryptocurrency project and to get more people trading in it when it lists on an exchange as an initial coin offering (ICO).

 

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Filecoin Airdrop Filecoin is a decentralized storage system that aims to “store humanity’s most important information.” The project raised $205 million in an initial coin offering (ICO) in 2017, and initially planned a launch date for mid-2019. However, the launch date for the Filecoin mainnet was pushed back until block 148,888, which is expected in mid-October 2020.  

 

UNIA airdrop UNIA, the full name UNIASWAP.COM, is the forerunner of the permanent liquidity of the DEFI governance token UNI and the offsetting of impermanent losses. It is an inflation token based on liquidity and at the same time through permanent liquidity governance to offset impermanent losses, the next generation of intelligent aggregator. The Jurong Finance platform, which supports multiple DeFi protocols, is based on the UNI fork, which simplifies the user threshold and provides a lower fee rate to promote the DEFI ecosystem.     9ad78c644b7bace3ebae49be92d0ba17cc3776746294de2f79975bababd8a247.jpg

thundercore airdrop ThunderCore Hub is a secure and easy to use crypto wallet with full DApp browser capability. Manage your assets and experience the fast, scalable, user-centric Web3 decentralized apps made only possible on ThunderCore's high performance blockchain. Install and start in seconds.

 

 

 

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PHT airdrop ( bonus: kn26ww98 ) Cloud Earning PHT is designed to deliver simplified user experience and platform that enables all users, regardless of technical aptitude, to fully participate in the new cryptocurrency economy.
The application requires internet to sign in and establish a connection with the Phoneum server. Simply press "Start Earning" to connect. The server handles everything in the cloud, therefore, once earning is established, the app doesn't require the device to keep it open or in the background to earn PHT.  

 

Pi network Pi is a new digital currency. This app allows you to access and grow your Pi holdings and serves as wallet to host your digital assets. Pi is fairly distributed, eco-friendly and consumes minimal battery power.  

 

Bee Network airdrop Bee Network is a Decentralized Autonomous Organization (DAO) organization whose essential operations are automated agreeing to rules and principles assigned in code without human involvement.The naming of Bee Network is inspired by the concept of Hive Mind taken from the reputable publication Out of Control: The New Biology of Machines, Social Systems, and the Economic World by Kevin Kelly. Hive is taken as the metaphor of Hive Mind given its structure: there is a clear division of labor in which each individual honey bee has its own role and responsibility, and they all work together systematically and spontaneously to ensure the smooth operation of the Hive in the absence of a central authority. This ecosystem is also known as a distributed system which its productivity relies on thousands of individual input.

 

COIN airdrop The Coin app is the first app that allows you to travel in the physical world and collect digital assets that can be redeemed for cryptocurrencies or merchandise.

 

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reflextoken airdrop ( bonus: wls7t) Reflex is a new cryptocurrency project that wants to completely revolutionize the world of online social media.
You can find more information about the Reflex project at the official website: https://reflextoken.com
This app allows you to mine Reflex cryptocurrency directly in the cloud from your smartphone without consuming energy.

 

Airdrops are generally promoted on the company's website, as well as on cryptocurrency forums, and the coins or tokens are sent only to current holders of crypto wallets, usually those of bitcoin or ethereum.

To qualify for the free gift, a recipient may need to hold a minimum quantity of the crypto coins in their wallet. Alternatively, they may need to perform a certain task, such as posting about the currency on a social media forum, connecting with a particular member of the blockchain project, or writing a blog post.

There are good and bad crypto airdrops—beware of pump-and-dump schemes.

A legitimate crypto airdrop never seeks capital investment in the currency. Its aim is purely promotional. On other hand, some crypto scams involve sending micro amounts of bitcoin or other cryptocurrencies to unsuspecting recipients in what is known as a dusting scam. Users should always be vigilant about unsolicited deposits into their crypto wallets.

 

 

Advantages and Disadvantages of Cryptocurrency Airdrops

Given the extreme competition among cryptocurrency startups, an airdrop is an attempt to stand out from the crowd. Some businesses devoted to crypto airdrops offer alerts to users and listing services to startups, plus a range of marketing services to fine-tune their airdrops. As always, there are good businesses and bad in this space.

Michael J. Casey, chairman of CoinDesk's advisory board and an advisor at MIT's blockchain research initiative, argued in a post on a CoinDesk blog that some type of marketing is essential if a cryptocurrency is to succeed. "A currency is nothing if it is not widely used. And that can't be achieved unless people make some cost-incurring effort to encourage widespread usage," he wrote.

However, there have also been warnings about cryptocurrency airdrops from others in the industry. For example, Pierre Rochard, the founder of Bitcoin Advisory, tweeted a caution that crypto airdrops can be pump-and-dump schemes. That is, owners of the cryptocurrency could be artificially inflating its value in order to make a quick profit.

Rochard tweeted: "Watch out for give away scams like this: 1. Instantly pre-mine tokens for yourself and your friends 2. Trade the pre-mined tokens with each other to pump price 3. Bait retail investors with a 'give away' of the tokens 4. Retail evangelizes the token for you, dump."

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