A cryptocurrency "airdrop" is a giveaway of a bunch of newly minted tokens for free during the rollout of an ICO. It might seem like the company doing the ICO is giving away free lottery tickets, and, in a way, they are, but there is a method to the madness. Airdropping is really a guerilla marketing tactic meant to contribute to the success of a new cryptocurrency.
Token startups know that there is a lot more value when their token is held on as many wallets as possible. The airdrop quickly promotes mindshare in the crowded cryptocoin space (walking up to someone and handing them money is a sure way to get their attention!), thus enabling faster mass adoption and price gains beyond what is typically achieved in an ICO.
When looking at a token distribution pie graph post-ICO, you’ll see a large part of the pie is owned by the devs and management team, people who joined the pre-sale, and by other people and organizations invested in the ICO. An airdrop adds an extra slice to the pie, and often that slice, though it may not be the biggest slice, will have the most people in it.
Every airdrop has a different set of rules, though you must always be a holder of an existing coin like bitcoin or ether to participate. Sometimes you need an active account on Twitter, Telegram (telegram.org), or the Bitcointalk forum (bitcointalk.org) to be eligible for an airdrop. Eligibility often requires a retweet on Twitter, and you may need a minimum number of followers for your retweet to count. If you are a newbie on Bitcointalk you may not be eligible, so, if you want to be eligible for as many airdrops as possible, get active on Bitcointalk now and work on getting a higher rank.
Holding a lot of different coins makes you more likely to receive airdrops. Often the only requirement to receive airdropped crypto is that you have coins from the relevant blockchain stored in your wallets, such as Byteball, Stellar lumens, or OmiseGo. There is usually at least one airdrop every day on either Bitcoin, NEO, Litecoin, or Dash. Platforms like Waves or Komodo sometimes deliver airdrops for users without any announcement. Check your wallets regularly to see if you may have received a surprise airdrop.
To avoid airdrop scammers trying to steal your crypto, never give your private keys to anyone, use 2-factor authentication on your wallets, be careful downloading wallets of smaller projects, never click on a link redirecting to a wallet, don’t use your main email address to apply for an airdrop, don’t re-use your passwords when you register, and don’t be tricked into sending a small amount of crypto to receive your airdrop.
Your personal wallet address should be ERC20 compatible because most of the tokens that are airdropped are ERC20 tokens. Your Ethereum wallet must be active, with some human use. Airdrops have checks in place to block people who randomly generate a bunch of addresses and sign them all up to unfairly obtain more airdropped coins. If your wallet doesn’t show activity, it might not receive the airdrop. Sometime airdrops even require a minimum balance in the account.
It can take a month or two to receive your airdrop. This is because the ICO must be formally concluded prior to the issuance of the airdropped tokens. To check your wallet info and see if the airdrop tokens have appeared in your wallet, go to Etherscan (etherscan.io) and enter your ETH address into the search box.
Enjoy the airdrop phenomenon while you can. Airdrops are being overpromoted to the point where they are starting to lose their intended effect. Follow all the action at https://airdropalert.com.
By: BGN Editorial Staff