How do Airdrops happen?
Airdrops can be distributed in various ways. One is through automatic airdrops resulting from forks or hard forks like Bitcoin Cash and Bitcoin Diamond. Token holders are counted and are automatically entitled to a certain amount of tokens from the new coin. These token holders are counted on the exact block number that the fork happens. The amount of cryptocurrency you have on the designated block number will be taken into account when distributing the airdrop.
The coin distribution happens in proportional ratios that are predetermined by the project’s team. The more you have, the more you will get. For the end user, collecting the new coins should be almost automatic. They need to have a wallet that supports the new coin. For developers these automatic airdrops are the easiest way of distributing the coins to the wallets of users. However by doing this they can’t actively collect information about users and if they actually use the tokens. That’s why this way of airdropping is a great way to kickstart the project into circulation, but it doesn’t ensure that the marketing aspect will be optimal.
The other way is incentivized airdrops. These incentives include purchasing in an ICO, people performing certain actions that help with the adoption and marketing of the new project or just free distributions from exchanges or projects. You can invest in Initial Coin Offerings and for your investment you can receive bonus tokens through an airdrop in addition to the tokens you will get for your investment through the smart contract.
Some ICOs require you to follow them on social media, other require you to make a promotional video about the specific coin. Other incentives include referring friends to check out the project, creating and posting other forms of content or joining a community. Bonus coins incentivize people to learn about the project. A great addition to incentivized airdrops is that it allows teams to collect valuable marketing information about the network’s users.
Some exchanges are making airdrops for marketing purposes on certain cryptocurrencies or just for thanking its user base. A big question is why do cryptocurrency projects give away for free their valuable tokens? The answer is marketing and awareness for the adoption process of the cryptocurrency.
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