What Is An Airdrop And How Does It Work?

What Is An Airdrop And How Does It Work?


In the cryptocurrency world, Airdrop has a different meaning

to when is used in the military, and specifically relates to gifts of tokens. Free crypto, yay!

What is an Airdrop?

A crypto Airdrop is the process in which tokens are distributed free of charge to users’ wallets in a blockchain. It is usually carried out by start-up companies in the ICO stage as a way to promote their projects and make themselves known. 

Why do cryptocurrency Airdrops happen?

There are several reasons why projects use Airdrops. The most frequent are:

Marketing strategy:
 generally, companies use it to attract attention in its ICO stage, so that interested parties are encouraged to investigate and then invest in the token. These strategies are also implemented with the launch of new cryptocurrencies that result from a fork, such as Bitcoin Cash.

Loyalty rewards: 
an Airdrop uses wallets and cryptocurrency exchange sites to provide free tokens as a way to reward their customers and subscribers for being loyal to their platforms. A relevant case: in 2017 Binance gave 500 TRX to their members.

Decentralization:
this helps from any point of view to any cryptocurrency platform and generates more security for the network and users. Example: OmiseGO distributed a large part of its tokens to Ethereum users.

Examples of successful airdrops

It is hard to define what constitutes a ‘successful’ airdrop, or to quantify its success. Nevertheless, let’s have a look at some of the most notable airdrops to date.

ByteBall airdrop

ByteBall is a Directed Acyclic Graph, or DAG-based, cryptocurrency network that features two native currencies: bytes and blackbytes. This ICO is notable because it launches airdrops to coincide with full moons. ByteBall distributes its token via airdrops for users who hold Bitcoin in their wallets.

OmiseGo airdrop

OmiseGo is now an established Ethereum-based platform for peer-to-peer (P2P) value exchange. But in 2017, it was just another startup ICO. Back in July 2017, OmiseGo launched a widely publicized, large-scale airdrop, where it distributed 5% of all its tokens to all Ethereum addresses that hold a balance over 0.1 ETH as of block 3988888. The airdrop took place exactly on July 7th 2017, 16:36:56 UTC.

Forks vs Airdrops

Airdrops are not to be confused with forks, another one of those terms with seemingly incongruous meanings.

Fork: A definition

Throughout its sometimes volatile history, Bitcoin has undergone changes and gone through forks which have heralded the inception of new currencies. The term “fork” signifies a code change to a coin’s underlying blockchain protocol. The new code might add new features, speed up the blockchain, or introduce other changes. Forks can be hard or soft. During a hard fork event, a currency splits into two. This results in two versions of the same currency (old and new) coming into existence. Hard forks are major changes to the blockchain protocol that underpins a currency, and are thus prone to create extreme market volatility. A soft fork also means a split, but the difference is that only one currency remains afterwards.

The Bitcoin Cash fork of 2017

August 1, 2017, became etched in the history of Bitcoin as its offspring, Bitcoin Cash, was born. A new currency came into existence that day, and any Bitcoin holders received the equivalent amount of Bitcoin Cash. While this fact bears similarities with an Airdrop, as users received “free coins”, it’s not quite the same. Airdrops are designed almost as marketing tools, to either generate interest, commercial leads, or simply maintain the buzz., while forks are major changes to a blockchain protocol, designed to split a currency.

Where to find free crypto Airdrops

There are pages in social networks, forums and applications that keep the community updated with relevant information that helps them select the most popular or current Airdrops. One website that offers interesting and reliable information about Airdrops is 

AirdropAlert.com.

Of course, CryptoCoin.News also has a section dedicated to free crypto Airdrops, in cooperation with AirdropAlert.com.

Scam Airdrops

The attractiveness of Airdrops opens the doors to scams, so it is important to verify the information of an advertisement with the official page of its promoter. No project that has an Airdrop planned will request a private key, personal data or a transfer of funds to be eligible for the distribution of the tokens.

Conclusion

An Airdrop is a useful strategy in many ways; it has brought to the ecosystem a new way of capturing the public and spreading new cryptocurrencies. In addition, it has served the market to motivate users in new project investments and build loyalty in others. And last but not least, Airdrops can earn you some free money, the easy way!

Article Produced By
Abel Colmenares Napolitano

Abel is a Fintech enthusiast experienced with blockchain technology. With a BBA and a master degree in e-commerce, he combines his passion writing about the Blockchain Industry, Cryptocurrencies and Fintech. When he is not working, he loves playing online games.

 

https://cryptocoin.news/analysis/what-is-an-airdrop-in-the-cryptocurrency-world-and-how-they-works-9315/

Six Tips To Make Your Airdrop A Success

Six Tips To Make Your Airdrop A Success

Airdrops are becoming increasingly frequent

and are a common trend in the crypto space. With thousands of tokens currently in existence and a constant stream of more in development, the number of scam airdrops is also on the rise, therefore distinguishing between legitimate and fake airdrops is a big issue for potential airdrop participants.

With the fallout from the Cambridge Analytica and Facebook data privacy scandal still fresh in people’s minds, there is a heightened awareness around disclosing personal information and data protection — meaning existing mechanics such as Google forms (which require the input of personal details) may discourage potential involvement. Google form airdrops also require significant time and manpower to cross-reference Telegram users with registrants. Enter the progressive airdrop: by enabling live syncing between platforms, this new kind of technology allows companies to bring more value to their communities, as well as monitor participant engagement.

So what can companies do to ensure a smooth and successful airdrop?

  1. Use Telegram

By conducting everything in one place such as messaging app Telegram, it makes life easier for your users who won’t have to struggle with referral links, switching between multiple apps, or losing friends to drawn-out processes. Instead of copying and pasting, the progressive airdrop model (like the one qiibee uses) will automatically detect when you add a new member to your Telegram group. Having everything and everyone on Telegram also helps to build your community and encourages conversation starters.

  1. Live sync across platforms

By implementing technology that enables live syncing between platforms, this back-end development can help resolve logistical issues, thus eliminating any scope for human error during the process and creating a more seamless system — bringing added value to both your users and your Telegram group.

  1. Make it as user-friendly as possible

Consumers know the value of their data, and with ethics and regulation under the spotlight recently, it’s important to take the privacy of your participants into consideration. Airdrop registration should be a simple task with minimal input needed. While existing mechanics like Google forms require the input of personal details, this can be off-putting to some people and discourages potential involvement. To encourage more involvement, keep things on a need-to-know basis.

  1. Reward engagement

Unique to the progressive airdrop model, participants are provided with the opportunity to access more tokens through engagement. Giving control to participants and acknowledging their interactions and milestones is invaluable in building trust. Recognizing achievements with a badge system or leaderboard can motivate participants to be more active in your community channels. This forms a mutually beneficial relationship and further builds loyalty.

  1. Monitor spam

Managing community channels such as Telegram during the airdrop process often means dealing with increased volumes of spam and trolling. This can be detrimental to your credibility and have a negative impact on engaged participants contributing to the conversation. Using anti-spam and anti-abuse policies in conjunction with sentiment detecting and text recognition technology are simple ways of maintaining high-quality discussions.

  1. Utilize social media

Integrating follow features into your airdrop mechanic invites participants to continue the conversation across different channels. Spreading the word on Twitter, Facebook, and YouTube about a system like the progressive airdrop not only helps to reach new audiences, but bolsters your own message on social media.

Article Produced By
Gabriele Giancola

Gabriele Giancola, is Co-founder and CEO of blockchain-powered loyalty ecosystem, qiibee. A serial entrepreneur, Gabriele has co-founded multiple companies including gratis-auto.ch, a start-up focused on mobile outdoor advertising, and a mining farm with around 60 miners. Gabriele holds a Masters in Business Management from the University of St. Gallen in Switzerland.

https://www.valuewalk.com/2018/05/crypto-airdrop-guide/

Crypto Airdrops

Crypto Airdrops

This is you complete guide to crypto airdrops,

in the below post we have listed down almost all of the FAQ that you need to answer on the subject.

What is a Cryptocurrency airdrop?

Cryptocurrency airdrop means, quite literally, dropping free crypto coins directly into your wallet. There are no fees, no charges, airdrop coins are simply transferred free of cost to your coin wallet. What is a cryptocurrency wallet? It’s a big topic and I will touch on this later in this post. Not satisfied with the crypto airdrop meaning? Well read on.

How do you get airdrop for free? Even if you are a newbie and just joined in into airdrop cryptocurrency mania you can still easily get free airdrop coins in 2018. The best way to stay updated on the upcoming airdrops is to join our crypto airdrops telegram channel. You can also find upcoming crypto airdrops on reddit as well on facebook. Our Crypto Airdrops List on our website is always updated with the latest and the best coin airdrops of 2018. You should also check our crypto airdrops calendar so that you can apply daily!

Of-course these airdrops are not 100% free, nothing really is in the world, right? Sometimes, there are certain tasks that the one needs to do to get free airdrops. These tasks are called bounties and in same way entitles you earn free eth tokens in airdrops. In our airdrop alerts to our users we send almost all kind of airdrops, except of course the obvious scam crypto coins. In short the idea is to reward early adopters of cryptocoins. These blockchain tech projects reserve a part of their tokens just for the free distribution to their crypto community.

While at other times you already need hold some type of altcoin or even bitcoin to receive airdrop coins. E.g. In two very popular cryptocurrency airdrop holders of bitcoins received free bitcoin cash and holders of Ethereum received free tokens of OmsiGo. To claim airdrop tokens you sometime need to register on project’s airdrop website or join airdrop telegram group. And yes, if the project is asking for ETH address don’t forget to provide one. Now you know what is an airdrop. Right? But wait there is lot more! In my post I have explained how to get free tokens and tracker on the site provides a list of airdrops.

Upcoming Crypto Airdrops

Are Crypto Airdrops safe?

I will say 99.99% yes. To get an airdrop coin all you have to give is some non-personal details and 5 minutes of your time. However, there do are frauds in cryptocurrency airdrops. There are some shady coin project which have no intention to do anything except of-course asking for donations for airdrop tokens. In such case you should always stay alert and avoid these coin projects by miles. Remember the golden rule – never ever share your private keys while applying to a coin airdrop. Reporting such issues is the best way forward as it alerts the whole community of the bad intentions of the developers.

Types of Crypto airdrops

There are a few different types of coin airdrops but for the brevity (and for the profit!) we will focus on Ethereum airdrops or ETH airdrops, in short. That being said, here are a few different kinds of airdrops: Crypto airdrop forks: Cryptocurrency airdrop forks basically means that an existing blockchain tech is forked in two and a new airdrop coin is created. Crypto airdrop forks can be soft or hard fork.

It is a hard fork where the real money is. Over the period of time, both Bitcoin forks and Ethereum forks have made a lot of free coins for their holders. The idea is simple, when a new cryptocoins are created it is distributed free to the community which is already holding the older coin. Ethereum classic was a result of hard-fork and is a great success, Bitcoin Cash too was forked out from Bitcoin and had been a massive value add to the Bitcoin holders. Who doesn’t like to receive free coin airdrop, right?

Ethereum Airdrops or ERC-20 Airdrops: Ethereum is a sort of a gold standard of cryptocurrencies, mainly because it is a fast growing platform with a well established cryptocurrency community. There are many other platforms such as Waves which also do airdrops, but they are rare and in-between. Ethereum not only provides platform to create your own DAPP (distributed app) but also allows you to create your own coin. Yes, anyone, with a wild thought in mind can go ahead and create his own new ether token! That’s the prime reason for a flood of ICOs (and hence ICO airdrops) that we are seeing these days.

Ethereum Airdrops are quite straightforward, at least most of them. The way it works is you apply for a cryptocurrency airdrop for a blockchain tech and receive airdrop coins directly in your Ethereum wallet. Crypto Faucets: While you can contest that faucets are not really cryptocurrency airdrops, they do by definition give away free Cryptocurrencies. They are 100 different faucets right now, but 99.99% of them are spammy and not really worth your time. I personally like free bitcoin (link on the top menu) which has been operating successfully for several years now, and it also doesn’t bombard your with advertisements.

Fun fact:

Free bitcoin was given in some faucets during the very early days. Many of them are crypto millionaires now. You can also call it Bitcoing Airdrop. Sweet, right?

Crypto Airdrops – Should you apply?

Well, for one if you are an absolute beginner in cryptocurrencies, airdrop is the best way to wet your feet. There is zero risk in coin airdrops, as only thing you have to invest is 5 minutes of your time. New altcons are flooding the cryptocurrency market everyday and hence the flood of free airdrops tokens too! There way to many coins for someone to track, so we do the job for you and send our users airdrop alerts.

Since absolutely anyone with little bit of invest can create his own ERC-20 token, there are a lot of shit tokens out there which serve absolutely no purpose. Here on https://airdrops.me we weed out such spammer coins and save you from wasting time. That being said we only remove the obvious low-life fraud crypto tokens and won’t remove anything else as we want you to do as many as coin airdrop possible.

Some of the businesses are actually genuine and not pump-n-dump kind of quick schemes that promoters are looking to make quick bucks on. Seriously, there are so many scams out there, so please do your due diligence, if you really are interested in investing. There are gems in between, and this is what you need to work on. Projects like Hawala tokens and OmsieGo have really made good returns for people who initially applied for their airdrops.

So, how will just a few Crypto projects will make you good money? Are these airdrops really worth your time? The answer totally depends on you… How so? Well, the key to actually striking it big is referrals. Almost every free airdrop comes with an affiliate system, the key is to apply for all these airdrops and then promote them with your affiliate id. Profit!

Why are all these projects giving free Cryptocurrency?

So, now you understood new cryptocoins are given away in airdrop for free. But you still can’t make sense of why these coin projects are giving airdrop free? It may appear that these projects are giving away free Cryptocurrency but it is far from the truth. They are actually paying to do certain crypto bounty tasks, at a bare minimum level they are making you join their telegram group and hence building a telegram community.

There are many other tasks they can ask you to do, e.g. sharing the cryptocurrency airdrops on facebook, follow them on twitter for airdrop alerts, clap them on medium blog etc. Social indicators not only promote their projects but also adds a sort of confidence in their investor when they look at their social media followers. Lastly, but not least, Blockchain tech projects gather email addresses which further help them promote their ICOs … to You! Yes, they know if they bombard you with emails just enough, some of you will actually become their customer and buy their ICO tokens. I, personally, absolutely do not recommend buying an ICO, but you be your own best judge.

How to Apply for ERC-20 Ethereum Airdrops?

At the most basic level the airdrop will ask you for two things:

  1. Ethereum address?—?where it will airdrop the tokens.
  2. Telegram id?—?where you will join their projects

This being said, there are a few different style of airdrops and we will cover them all in a separate blog post! We will show how to apply for each of these Crypto airdrops step by step. Also, note that for your convenience we send you airdrop alerts when you subscribe to our various channels.

You can easily create a ether wallet address by going over to myetherwallet or MIST or metamask wallet. When you create a new crypto wallet you will receive a pair of public and private key. The public key is your ETH address you will need to apply for a coin airdrop while the private is something you will need to do transactions like sending your ETH tokens to some other address. Needless to say, in order to safely apply to coin airdrops you need to keep your private key safe. Never share your private key with a coin airdrop.

How to check your free airdrop balance?

Checking your airdrop token balance is a very simply process. There are two main website I use to check my free tokens balance – ethplorer and etherscan. Go to any of these website and enter your ETH address to know your free tokens balance.Another useful crypto tip is to go to this coinmarketcap.com link. This is where all the new crypto airdrops get listed. This is helpful to check in which crypto exchange your free crypto is listed, what is the current market price and how much is the trade volume. All of this comes handy when you are trying to sell your new cryptocoin.

What to do when you receive an airdrop coin?

Coin airdrop would typically drop your ether tokens right in your mew address. Now, you can either continue to hold these free cryptocurrency tokens or simply transfer to an exchange to sell them at a profit. It takes time for new airdrop coins to get listed on exchanges but when they do you will see a significant price movement. You can sell your airdrop coins if you are sure about its blockchain tech future or if you understand their business, keep on holding these free new cryptocoins. Bookmark this Airdrop alert website to stay on top of the upcoming airdrops of the new cryptocoins. Don’t forget to subscribe to our airdrops crypto alert on twitter, facebook and reddit.

Article Produced By
AirDrops.me

https://airdrops.me/crypto-guide/crypto-airdrops-ultimate-guide/

Cryptocurrency-Airdrops

Wouldn’t it be nice if money just fell from the sky?

In the world of cryptocurrency, sometimes it happens.The word "airdrop" immediately evokes images of parachutes and crates filled with vital supplies floating through the sky. When you hear "airdrop," you might think of food sent to starving populations or perhaps ammunition replenishments for embattled soldiers. In the cryptocurrency space, however, the term has taken on a different meaning altogether.

What is an airdrop?

According to members of Bitcoin Talk circa 2016, an airdrop is a "free giveaway of pre-mined coins." Perhaps surprisingly, the idea of giving away money isn't totally new. In a 1969 paper entitled "The Optimum Quantity of Money," economist and Nobel Laureate Milton Friedman suggested

a thought experiment.

"Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in bills from the sky, which is, of course, hastily collected by members of the community. Let us suppose further that everyone is convinced that this is a unique event which will never be repeated."

By dropping money from the sky, a nation's central bank could increase the amount of money in circulation. In turn, this would stimulate economic activity and augment inflation. Colloquially referred to as "helicopter money," this unconventional tool of monetary policy has never been seriously considered – notwithstanding a passing reference in a 2002 speech about deflation by former Fed chairman Ben Bernanke, earning him the nickname "Helicopter Ben." Returning to the world of cryptocurrency, airdrops seem most common among projects that are just starting out. It's a way of putting coins in the hands of potential users, not adjusting monetary policy for an existing economy like Friedman imagined.

For instance, in 2014, a politically disenchanted programmer named Baldur Friggjar Odinsson promoted Auroracoin (AUR) using an airdrop to the people of Iceland. At the time of its creation, AUR was meant to be $15 per coin, but today it's worth just $0.67 per coin – a pretty substantial decline. To receive their coins, Icelanders were asked to input their kennitölur, or national identification numbers. By most indications, the project never really took root. Ultimately, airdrops are an attempt to bootstrap the network effect, the phenomenon whereby a good or service gains value as more people use it. This tool of cryptocurrency organizations raises questions about the legality of and potential tax implications for coins that people have not bought or even requested.

Article Produced By
Matthew De Silva

Matthew has a passion for law and technology. He graduated from Georgetown University, where he studied international economics and music. Matthew enjoys biking and listening to tech podcasts. He lives in Los Angeles.

Token Airdrops Are Taking Off Despite Legal Concerns

Token Airdrops Are Taking Off Despite Legal Concerns

They say you get nothing for free in this life,

but tokenized projects running airdrops would beg to differ. You can now get a whole lotta crypto assets for free – hundreds of them in fact – simply for signing up and following some social channels. What started as a novelty has become the norm, with a vast number of ICOs now earmarking a portion of their tokens for free distribution. Questions remain though about the legal status of airdropped tokens in an age where anything related to crypto risks being labeled a security.

Airdrops Are the New Faucets

In bitcoin’s earliest days, faucets were used to distribute the cryptocurrency. Fractions of a bitcoin were given away on tap, back when BTC was cheap enough to send in small amounts and bits were worth buttons. Anyone who claimed those free morsels back in the day and held onto them will have eventually came into possession of some extremely valuable cryptocurrency. Today, airdrops are the faucets of the token economy. These freely dispensed tokens aren’t worth much – if anything – but there’s a small chance that one day they might be worth something.

At the Crypto Investor show in London last weekend, glossy flyers promoted an after-party with “free drinks + airdrop”. Come for the prosecco, stay for the tokenized revolution. Such is the prevalence of airdrops that an entire cottage industry has sprung up to promote them and inform crypto holders of the latest ones worth catching. Prominent Twitter traders compete to top the referral leaderboard for airdrops, whereupon they will be rewarded with yet more tokens. Everyone’s clamoring for free tokens right now, even though no one’s sure whether they’ll ever have any utility or market value.

Get Your Airdrops While They’re Hot

For new entrants to the cryptocurrency scene, airdrops provide a way to get some points on the board, or rather some tokens in the portfolio. The very act of claiming them is enough to teach beginners the basics of wallet use and receiving crypto. The problems these projects purport to solve also provides a primer on the weird and wonderful world of crypto. Such is the prevalence of airdrops, they now have a dedicated Bitcointalk forum thread, dedicated Telegram groups and, in Airdropalert, a website that promises you need “never miss a free crypto airdrop again!”

Most of the tokens awarded are ERC20s, though other blockchains have also caught on; NEO for example recently distributed ONT via an airdrop. Just like an ICO tracker, Airdropalert filters offers based on upcoming/active/past. Tokens currently up for grabs include Boutspro, Yee, Sofin, and Aelf. Giving away tokens is easy in the early stages of a project, when they’re literally worth nothing. The trick is getting the airdrop community to start using these tokens on the platforms they were designed for. If that occurs, and the project reaches critical mass, the tokens should rise in value, and then everyone will be a winner. Or so the theory goes.

There’s No Such Thing as a Free Lunch

While the legal status of tokens has attracted a lot of scrutiny recently, little has been said about airdrops. Does the act of giving something away for free mean it is free from securities laws and other regulations affecting cryptocurrency? Probably not. As Tokendata recently noted: “While airdrops can make economic sense…we’ve seen some ICOs revert to airdrops because they believe that: Airdrops reduce the regulatory footprint in terms of securities laws…Airdrops increase a project’s valuation instantly”.

Tokendata then goes on to explain that airdrops are still subject to securities regulations. The problem is that airdrop claimants aren’t obliged to undergo KYC, as ICO participants now routinely are. If it were necessary to submit documents for verification, suffice to say the airdrop business would fold overnight. People are always up for free stuff, but force them to jump through too many hoops and they’ll walk away. But should the SEC come after an ICO further down the line, and it emerged that 5% of their tokens were in the hands of unknown investors, there could be trouble.

Blockchain advisor and investor Oliver Isaacs opined: “The attraction with airdrops is natural, as they have the potential to rapidly onboard users and create an engaged community virtually from day one. ICOs need to be careful to be seen to issuing airdropped tokens for the right reasons though, and not as a means of circumventing securities laws.”

The truth is, no one knows for sure where regulations are going to lead the crypto economy, both in the U.S. and the rest of the world. Tokens may or may not be commodities, securities, or some new asset class that’s yet to be defined. But whatever they are, doling them out like confetti could be a recipe for regulatory trouble should these tokens attain value. Cryptocurrency users won’t care about this stuff – they’re only there for the free tokens after all – but it’s something ICOs should carefully consider. One cease and desist order and the entire airdrop racket could come tumbling down.

Article Produced By
Kai Sedgwick

Kai's been playing with words for a living since 2009 and bought his first bitcoin at $19. It's long gone. He's previously written white papers for blockchain startups and is especially interested in P2P exchanges and DNMs.

https://news.bitcoin.com/token-airdrops-taking-off-despite-legal-concerns/

Crypto Airdrops – Effective Marketing Tool, And Potential ICO Replacement

Crypto Airdrops – Effective Marketing Tool, And Potential ICO Replacement

Crypto Airdrops – Effective Marketing Tool, And Potential ICO Replacement

One of the biggest challenges in the cryptocurrency space is to raise people’s awareness of your project, especially when it is time to raise capital or to boost the growth of the network. Nowadays, many projects rely on increasing their brand awareness using traditional mediums, such as paid YouTube influencers, paid-content writers, paid Twitter accounts, or simply by conducting huge marketing campaigns and questionable teasers.

The problem is that most of these marketing schemes are illegal as tokens are considered financial assets by many institutions such as the SEC, which warned influencers and celebrities that they are violating securities laws, such as the anti-touting provision of the federal securities laws, by promoting ICOs without disclosing the nature and amount of their compensation for any type of endorsement. 

For these reasons, token airdrops seem to have become the new cryptocurrency marketing craze, with many projects deciding to use this strategy to distribute their tokens to the public. For instance, NNS, Neo Name Service, decided to airdrop 1% of its total supply to NEO holders on June 27th, and a dozen projects evolving within the EOS ecosystem decided to follow the same strategy (Most EOS airdrops can be found on EOSDrops.io)

What Is An Airdrop?

An airdrop occurs when coins are deposited into someone’s wallet, without the person having paid anything, almost out of thin air. In many cases, to be the recipient of an airdrop, the only requirement is to have some coins from the hosting blockchain of the project stored in a private wallet. For instance, if the token being airdropped is an ERC-20 coin, then holding a certain amount of ETH is sufficient to be eligible for the airdrop. The same idea works from project evolving on the NEO, Stellar (XLM), or Icon (ICX) blockchains. Sometimes, and most often than not, other non-financial requirements also have to be met, such as subscribing to social media feeds or completing KYC. “Airdrops combine the best of paid referral programs with stock options. Potential users get paid for joining or using the network and have the potential upside if the network increases in value.”

Why Do Projects Airdrop Their Tokens For Free?

The reason behind airdrops is not simply to give the public free coins, but rather as part of a more elaborate corporate strategy. First and foremost, airdrops are used to increase awareness around a token, which might lead to an increase in the token value and to the creation of a network effect. This marketing strategy plays on a cognitive bias known as the endowment effect – suggesting that individuals value something higher if they own it. Moreover, like most types of advertisement, airdrops are used to plant a “seed” into users’ psyches. The aim is that the next time users see the ticker of the coin they have been airdropped, even months later, they will have the reflex to stop and be more likely to click on the ticker to know what is happening to the coin, even if only to see the current price.

Secondly, airdrops are a way to avoid regulatory scrutiny, as ICOs are currently in a grey area in some jurisdictions (the US) or completely banned (China, Korea). Therefore, projects are instead deciding to raise money from institutional investors and airdrop the rest as a way to allow users to get their hands on the token. Examples of companies using airdrops to this extent are Banyan Network and Polymath. Most companies which decided not to conduct public ICOs, are either China-based or evolve in the US financial industry (for an extensive review on this point, we suggest reading this article).

Are Airdrops Effective Marketing Tools?

OmiseGo (OMG)

OmiseGo conducted the first airdrop of this kind and amplitude on September 4th – distributing 5% of the total issuance of OMG token to every ETH address, with a minimum balance of 0.1 ETH. The purpose of requiring a minimum wallet balance was to avoid sending tokens to phantom wallets and ensure that real users received the OMG tokens.  The airdrop enabled each ETH holder, by providing them with a share of the 5%, proportional to their share of the total circulating supply of Ether.

According to the team, the aim of the airdrop was to allow the token to be distributed as widely as possible, allowing for true decentralisation of the platform, to ultimately increase its network security. However, the statistics demonstrate that the aim of the Omise team might not have been purely holistic, but might have been part of a grand marketing scheme.    

On the chart below from Google Trends, you can see that a surge in search interest related to OmiseGo occurred during the days of the airdrop, reaching a peak close to the end of 2017, and dropping to a tenth of the search interest in June 2018. Most websites such as CoinDesk, CoinTelegraph, and much of the Twittersphere spoke about the airdrop, leading to many people wondering what the project was about, and increasing OMG brand awareness.

Ontology (ONT)

In contrast with OmiseGo, Ontology did not perform a public token sale but raised its capital uniquely from private investors. Rather than conducting an ICO to provide the crypto community with the ONT tokens, the company decided to launch 3 rounds of airdropping possibilities, with the first being worth $8,000 at ONT all-time high.

The first phase involved the subscription to the Ontology Newsletter, coupled with a KYC in January 2018, with as a reward for doing so, 1,000 ONT being distributed by email address. The second was to people attending the NEO DevCon by giving them 500 ONT. Finally, Ontology being from the same mother-house than NEO, AntChain, the company decided to give 100 million ONT (10%) to the NEO council, which decided to pass on 20 million of them to its community at a ratio of 0.2 ONT for each NEO owned.

The snapshot of the third phase of the airdrop occurred on March 1st, leading to the all-time peak in Google searches for the term Ontology. As in the case of OmiseGo, the airdrop has been covered in pretty much every crypto news outlet, meaning crowd awareness was at a high. Additionally, the token having been sold at $0.20 during the pre-sale, privates investors already realised a 40x return on their investments.

Tron (TRX)

Now, let’s take a look at Tron (TRX), and its PR machine and CEO, Justin Sun. On April 27th the team decided to airdrop 30 million TRX ($1.7 million equivalent) to Ethereum users having a balance of over 1 ETH (as of April 20) in their wallet. Unlike OMG, which decided to airdrop amounts proportional to the holding of ETH, or Ontology which gave everyone the same amount of ONT, Tron decided to credit each account with a random amount of TRX between 10 and 100. 

The Tron foundation has been clear that the reason for the airdrop was to market the Tron platform which was set to launch a few days after the airdrop, as their stated motives were to increase awareness around TRX and allow people to use these TRX to vote for the supernodes. However, unlike for the two examples mentioned above, the airdrop did not result in a drastic increase in Google search interest. The cause could be simply that Tron was omnipresent in social media since January, meaning people were already aware of an incoming airdrop, or as this is the first airdrop that took place squarely in the middle of the current bear market we find ourselves in, so overall interest in cryptocurrency has led to this lack of interest in Tron’s airdrop.

PolyMath (POLY)

Lastly, let’s take a look at Polymath, which in the same way as Ontology raised funds only from private investors, and did not conduct a public ICO. In a few words, the project sold 12.9 million POLY to private investors in their presale and decided to airdrop 10 million POLY to the blockchain community instead of executing an ICO. However, unlike all the projects above, which targeted the users of a particular platform, Polymath decided to allow anyone to subscribe to the airdrop, regardless of their holdings. 

Unsurprisingly, the project being fundamentally interesting, the team received more than 40,000 applications and demanded that each airdrop applicant complete a KYC and AML screening, to ensure that the tokens were airdropped to real users, rather than bots. All the people which completed the procedure received 250 POLY, worth $165 at the time of writing and $400 at the token’s all-time high.

Similarly to the other projects, besides Tron, the marketing scheme worked, as the search interest for Polymath reached its all-time high by the 10th of January, the deadline to apply to the airdrop. The airdropping strategy from a PR perspective is extremely effective, no matter the coin, the way the company decided to raise capital (public, or private), nor the distribution mechanism.  In all examples cited above, all coins show a spike in Google search interests – demonstrating that airdropping is an effective marketing tool.

Which Impact Do Airdrops Have On Token Price?

You might expect that airdrops automatically lead to selloffs. However, things are a little bit more complicated than that. In the case of Ontology (ONT), the data clearly shows that the airdrops led to a continuous increase in the token’s value. This might be explained by the fact that as the project was not traded prior to the airdrop; therefore, no price action prior to the airdrop occurred which would have allowed a buy the rumor, sell the news type pattern. Additionally, due to the token being highly anticipated by the cryptocurrency community, the project being from the same house as NEO, many decided to keep hold of their airdrop tokens.

In the Case of OmiseGo (OMG) the story is quite different. The token was tradeable long before the airdrop, and therefore people being airdropped OMG tokens might not have been interested in receiving them, thus selling their tokens, resulting in a cascading effect. This demonstrates that from a price standpoint, it might be important to investigate whether the target audience to receive the airdrop are going to be interested in holding the coin. In our opinion, giving airdrops to people who are uninterested in a project might not be the best strategy as it might become bad publicity, leading to even true holders being exasperated.

For Tron, as for its Google search movement, it is hard to know what the impact of the airdrop was, given the fact that several other pieces of news such as the mainnet release were given in the same period. Nevertheless, since the airdrop occurred, we can see that the token price has been steadily declining, with some sporadic upswing movements, coinciding with the overall crypto market movements – leading us to believe that the airdrop had indeed no particular effect to TRX as a whole

In Conclusion

Airdrops appear to be a highly effective tool to raise awareness of a project. Additionally, many projects see airdrops as a way to create a network effect, which is highly important in the blockchain space, where network security is proportionally related to the diversification of holdings. Needless to say, for an airdrop to be successful, it needs to have an extremely strong community. A community that believes in the coin will continue to promote it over a longer period of time and won’t sell off as soon as the distribution is carried out.

We see that both tokens, ONT and POLY, completed a private sale but no ICO – meaning that airdrops might become a good strategy for VCs to invest, as well as to provide an exit option. As stressed before, regulatory frameworks surrounding ICOs are highly uncertain, leading to higher regulatory risks. Thus, VCs might be reluctant to invest in projects undertaking a public sale, and the airdrop solution enables them to bypass these. Moreover, by not conducting an ICO, investors have the possibility to opt for reduced vesting and lock-up periods – allowing them to have higher liquidity on their holdings and to sell their positions if wanted.

The problem is, given that the airdrop method seems to be increasingly used, blockchain users might find themselves with increasing numbers of coins in their wallets which they could find themselves wanting to get rid of quickly. This problem has been pinpointed by Brayton Williams of Boost VC, who told CoinDesk that issuers could do a better job at targeting a relevant audience, rather than sending tokens to all addresses of a blockchain. For instance, issuers could airdrop tokens based on geography, demographics, job, or other factors, to cultivate the best market for the future of the platform.

The author succinctly describes the different kinds of online influencers, and how airdrops could capitalise on their reach, leading to airdrops reaching the right people who might have an interest in specific tokens, as well as referring them to their friends and further audience. For instance, an energy network evolving in a certain country would have no value to users living outside the said country, while a well-targetted airdrop to people living in the area might lead to a genuine interest in the project. The author of the text mentioned above envisions AI-driven tools, which won’t scan blockchains, or ask for manual inputs in order to receive the airdrops, but will instead look for data telling us which addresses are owned by which kind of people.

We believe that airdrops are here to stay and will become a big part of companies’ user acquisition schemes, and being able to market these will be increasingly important. However, despite being highly effective right now, as more projects turn toward this strategy, the effectiveness is likely to diminish – meaning that new marketing schemes, as well as more accurate targeting will need to be used. 

Article Produced By
Jacek Bastin

Jacek graduated with an M.A. in Finance from the Shanghai University of Finance and Economics. He lived in Europe and Asia, and always loved to dig into papers and research projects to really understand the key drivers and trends. He’s passionate about blockchain’s business application, the sharing economy, and FinTech.

Cryptocurrency Airdrops and Bounty Campaigns Face SEC Hammer

Cryptocurrency Airdrops and Bounty Campaigns Face SEC Hammer

Cryptocurrency Airdrops and Bounty Campaigns Face SEC Hammer

The regulatory scrutiny over ICOs has led to the arrival of token “airdrops,

or free tokens in exchange for a few marketing efforts. However, a recent ruling by the SEC may end this augmenting form of generating hype for many cryptocurrency projects in the U.S.

SEC Not Impressed

A U.S. Securities and Exchange Commission filing, dated Aug. 14, unveiled digital asset startup Tomahawk has received a $30,000 fine and a lifetime ban for allegedly employing “fraudulent marketing techniques” to amp up its fundraising efforts. A cease-and-desist order was later made public and cryptocurrency communities were quick to note a key detail of the SEC’s order: “Free” tokens were considered securities.

Tomahawk’s token issuance was said to violate Sections 5(a) and 5(c) of the Securities Act by “selling TOM tokens in the absence of a registered statement.” The court highlighted Tomahawk’s use of bounty campaigns and other marketing activities were “designed to foster the company’s economic interests” in addition to potentially causing market manipulation for its tokens. The absence of regulations means cryptocurrency entrepreneurs have been offering airdrops and bounty campaigns immune to security laws.

However, the filing states quite the contrary:

“On July 27, 2017, in response to the Commission’s DAO Report, Tomahawk published an article online titled ‘Tomahawkcoin ICO Adjusting to the SEC, by Legally Avoiding Them.’ That article incorrectly stated that Tomahawk’s ICO would be exempt from securities regulation because the Company was abandoning its plan to be quoted on the OTC market.”

Airdrops to be Illegal Soon?

Some crypto-enthusiasts ascertain the SEC’s issue is not cryptocurrencies, but the wayward process of token distribution. In this regard, Mashable reported on blockchain-based ride-sharing application Juno in 2017, describing the company’s enterprising reward of digital “shares” to riders using the platform.

Needless to say, the SEC stepped in to change the company’s core business ideals, putting in a formal request to shift from a digital share-rewards system to a cash-based incentive process. Moving forward–now that token issuers and ICOs are viewed as taboo by the U.S. lawmakers–it is expected that airdrops and bounty campaigns face comparable legal action and certain levels of scrutiny. The airdrop case weakens when blockchain entrepreneurs themselves describe the process in a satirical manner. Matthew Roszak of

Bloq said:

“In certain ways, people are getting free lottery tickets. There will be a tsunami of airdrops this year.”

Article Produced By

Shaurya Malwa

Post-mining his first bitcoins in 2012, there was no looking back for Shaurya Malwa. After graduating in business from the University of Wolverhampton, Shaurya ventured straight into the world of cryptocurrency and blockchain. Using a hard-hitting approach to article writing and crypto-trading, he finds his true self in the world of decentralized ideologies. When not writing, Shaurya builds his culinary skills and trades the big three cryptocurrencies.

https://cryptoslate.com/cryptocurrency-airdrops-and-bounty-campaigns-face-sec-hammer/

Tips for holding a successful cryptocurrency airdrop campaign from a user perspective

Tips for holding a successful cryptocurrency airdrop campaign from a user perspective

I was reading an article from Payments Journal about

“Six Tips to Make Your Airdrop a Success” and thought I would write my little piece on the subject, from a user’s perspective.

Clarification #1: I’ve never run an ICO or airdrop campaign, so I have little understanding of technical aspect such as delivery of tokens, etc.

Clarification #2: Since starting my journey into my airdrop challenge I’ve signed up for around 15 airdrops, not to mention the ones that were scams and I could not complete for whatever reason.

What’s the point of this article:
Hopefully a company that is trying to run an airdrop reads this and improves their systems. Here are my tips from experience. Keep in mind that I can be wrong, and what I’m writing is purely my own opinion.

Switch from technical to simple

It’s easy to get caught up in the technical side of things when it comes to an airdrop. After all, the ICO and cryptocurrency realm is highly technical. The only problem with this notion is, that most people that sign up for airdrops probably learned about it from a friend, a forum post or some kind of website like mine.

These people can be complete crypto noobs and might have just recently bought their first piece of Bitcoin. They can understand basic instructions, but anything too technical and you are setting yourself up for a support nightmare. Even confusing instructions, weird website setups or strange forms is not a good idea. Make your airdrop user-friendly. It’s that simple.

Be clear on the following:

  • Exactly what a user needs to do to earn/receive airdrop tokens.
  • When will a user receive their tokens?
  • How much is each token worth or will it be on launch day?
  • What is your total airdrop token value?
  • When will you receive your tokens?

Confirm that your airdrop is not a scam

I hate signing up for an airdrop only to realize that it’s probably a complete scam and that I will never see those tokens in my wallet. Not only did I just waste time, but I probably just gave away my email address or entered personal details into a form that I rather would not have done, especially now that I know it’s a scam. There should be two parts to this:

Airdrop hosting

Host your airdrop on your main website! This is so simple, yet I can’t understand why so many ICO’s and blockchain projects try to collect user data via a Google form. It’s a complete joke. If your project is worth anything you should have a developer or designer that can create a page for your airdrop that can collect a form, have a user dashboard, etc. Lately, if an airdrop is not on a project’s website, I just don’t even bother filling out the form – OR READING ABOUT THE ICO. Isn’t that what it’s all about, to gain exposure?

Make sure information about the airdrop is shared across all your social media accounts. You can also go the extra mile and create a blog post on your company blog, Medium.com, and Steemit. Also, register as a company representative or the company yourself so that it looks legit. Please stop using some Bitcoin forum as your main portal for airdrop announcements. Sure, you can use it get people to promote it and announce bounties, but it has to be on your official website or point to it.

Scam prevention

Choose an employee or higher a virtual assistant to scour the web on a regular basis for people hosting a fake airdrop for your coin. There are just so many airdrop groups on Facebook, subReddits, etc. they would have to join to find out. You could even set up Google Alerts. Once a scam airdrop for your token or ICO is discovered, do whatever you can to close it down by reporting them to the platform they are on. Also, notify your subscribers to warn them of the scam.

Utilize as many social media platforms possible

If you care about gaining exposure for your ICO or blockchain project allow users to get the word out on multiple social media platforms and award them accordingly. This should include Facebook, Twitter, Medium, Reddit, Facebook groups (multiple share options), Steemit, YouTube – just to mention a few. Also don’t be skimpy with your reward system. The more you give, the more you get which takes me to my next point.

Reward users fairly

I’m okay with signing up for an airdrop that gives me $5 worth of tokens, but anything lower than that it starts to lose my interest. Also, if the airdrop is that low ($5), let’s face it $5 isn’t much, then please don’t expect the user to like and follow all 10 of your social accounts to get it.

And don’t let me get started on rewarding users $1-$2 per referral. Sure it might sound easy drive referrals to an airdrop page, but it isn’t always as simple as it sounds. Reward them accordingly. At least make an airdrop reward around $5. This way you will probably generate much more exposure and motive affiliates. Don’t be skimpy. I would much rather sign up AND READ ABOUT AN ICO when the airdrop gives you a good amount of tokens $10+.

Use technology to your advantage

This part admittedly I lack in experience and knowledge, but really if you have a team of expert developers working for you, surely you can figure it out. Use technology to track user signups, create a dashboard for easier tracking and confirmation of tasks completed for additional tokens, make it easy for users to see their token balance, etc.

The dashboard in my honest opinion is a great option. I love being able to log into my account and check my latest referral and airdrop statistics. Why can’t every airdrop campaign have this? You can even have a page on your website that details the number of airdrop tokens distributed and enable checking of wallet addresses etc to see how many tokens they will receive. EOSdac did something similar.

Check that everything works before launching

Why would you start an airdrop campaign only to have to tell users “we’re busy fixing the bugs, please be patient.” This is entirely unprofessional and just means you did not prepare correctly or test the airdrop. The simple solution is to test that everything is working before you launch the campaign.

Article Produced By
Crypto Coin Authority

http://www.thecryptocoinauthority.com/successful-airdrop-campaign-tips/

AirDrop: The Ultimate Guide

AirDrop: The Ultimate Guide

AirDrop lets you quickly and easily transfer files between iPhones, iPads, and Macs.

It uses Bluetooth LE to broadcast, discover, and negotiate connections, and point-to-point Wi-Fi to transfer data. That makes it fast, power-efficient, and secure! When you're using AirDrop between iPhones and iPads, you can AirDrop photos, videos, contacts, Passbook passes, Voice Memos, Map locations, and any and everything else that appears on a Share sheet.

How to turn on AirDrop for iPhone or iPad

AirDrop lets you choose between enabling it for just your contacts or for everyone. "Contacts" requires more work, as you and the person you want to AirDrop with both have to be logged into iCloud and be in each other's Contacts. "Everyone" is easier but means random people you don't know can send you prank AirDrops.

Tap Contacts Only or Everyone to turn AirDrop on.

  1. Launch Control Center by swiping up from the bottom bezel of your iPhone or iPad.
  2. Make sure both Bluetooth and Wi-Fi are active. If they're not, just tap on them. (You don't have to be on a Wi-Fi network, you just need Wi-Fi on to transfer).
  3. Tap AirDrop.

How to AirDrop files from your iPhone or iPad

You can AirDrop files from any iPhone or iPad app that includes the built-in Share sheet, and you can share to anyone and any of their devices that show up in the Share sheet.

Tap the person or device you want to share to.

  1. Find the file you'd like to send with AirDrop (I chose a photo).
  2. Tap the Share button on the bottom right of your screen (looks like a box with an arrow coming out of the top).

Note: If you choose Contacts Only, make sure you're logged into iCloud. Apple won't share your contacts with another device to determine if there's a match; it'll check both your iCloud accounts instead. Then, if there is a match, it'll show you your own version of the contact on your own device. That way, no data gets leaked.

If you choose Everyone, even though you are highly visible to other devices, you will always be prompted when someone is trying to share files with you through AirDrop. If you don't recognize the sender, or do not want to receive the files, you can always choose not to accept them. Files sent through AirDrop will appear in the app that typically handles those sorts of files — i.e. photos will show up in Photos.

How to block AirDrop with restrictions for iPhone and iPad

If you want to not just turn off AirDrop but block it completely, for example on your child's iPhone or iPad, you can use restrictions — also known as parental controls. Tap on Enable Restrictions at the top if you don't already have them turned on. If you do, skip down to step 6.

Switch AirDrop to Off.

  1. Launch the Settings app on your iPhone or iPad.
  2. Tap on General.
  3. Tap on Restrictions.
  4. Enter a passcode that you'll use to enable and disable apps.

How to troubleshoot AirDrop on iPhone and iPhone

AirDrop feels miraculous when it's working, frustrating when it's not. If you're having trouble with AirDrop on your iPhone or iPad, here are some fixes:

How to turn on (or off) AirDrop for Mac

AirDrop lets you choose between enabling it for just your contacts or for everyone. "Contacts" requires more work, as you and the person you want to AirDrop with both have to be logged into iCloud and be in each other's Contacts. "Everyone" is easier but means random people you don't know can send you prank AirDrops.

  1. Launch the Finder on your Macs.
  2. Click on AirDrop in the left navigation.
  3. Select Off to disable AirDrop, Contacts Only to enable only your contacts to AirDrop you, or Everyone to let everyone AirDrop you.

How to AirDrop from your Mac using the drag and drop

If you want to grab some files and quickly throw them into AirDrop, the fastest way to do it is using drag and drop.

  1. Launch Finder on your Mac.
  2. Find the files you want to AirDrop.
  3. Drag the files over AirDrop in the sidebar.
  4. Hover there until the Finder changes to the AirDrop window.
  5. Drop the files onto the picture of the contact you want to share them with.

How to AirDrop from your Mac using the context menu

If you prefer to control/right-click on your Mac, you can access AirDrop that way as well.

  1. Launch Finder on your Mac.
  2. Find the file you want to share.
  3. Control/right click on the file and then choose Share from the menu.
  4. Choose AirDrop from the sub-menu.
  5. Click on the picture of the person you want to share with.

How to AirDrop from your Mac using the Share sheet

You can also AirDrop files using the Share sheet on macOS, including from the Finder and Safari.

  1. Click on the Share button, typically at the top right.
  2. Select AirDrop
  3. Click on the picture of the person you want to share with

How to troubleshoot AirDrop on on Mac

If contacts don't show up in the AirDrop interface, try these solutions, in order:

  • Toggle Bluetooth and/or Wi-Fi off and back on to reset the connections.
  • Turn off Instant Hotspot to free up the Bluetooth and Wi-Fi connections.
  • Temporarily switch to Everyone to remove any chance of contact mismatch.

Article Produced By
Rene Ritchie
and
Cella Lao Rousseau

https://www.imore.com/airdrop

Operation Airdrop delivers critical supplies within hours to areas flooded by Hurricane Florence

Operation Airdrop delivers critical supplies within hours to areas flooded by Hurricane Florence

Within mere minutes, volunteers from the Texas-based organization

Operation Airdrop rushed to unload a semi-truck filled with bottled water. In under a half-hour, those same bottles were airborne from Raleigh-Durham International Airport bound toward a flooded Carteret County. 

Founded a year ago in the aftermath of Hurricane Harvey, Operation Airdrop expanded into providing service for Hurricane Florence with the help of local Triangle grassroot coordinators, pilots and partnerships with dozens of local and national disaster-relief organizations. The organization moves supplies from municipal airports to boats in the flooded regions of North Carolina, many of which are where trucks or cars cannot access safely.  Dan Benedix, a volunteer pilot, said the organization delivered 29,000 pounds of food and supplies across North Carolina on Tuesday and approximately 55,000 pounds Wednesday.

“In Lumberton they’re unloading the airplanes from the terminal onto boats, and those boats are going to peoples' houses that have been stranded without food or water for the last three or five days,” Benedix said.Although other disaster-relief organizations can take days between receiving and delivering supplies, Benedix said there’s only a few hours between Operation Airdrop's intake of product and it arriving to the destination in need.

According to Benedix, RDU’s Airport Authority gave all Operation Airdrop planes a $1 per gallon discount on gas and allowed hundreds of volunteer planes to use the TAC Air terminal. The volunteer pilots are paying their own gas — up to $600 for a round trip to the coast. “In fact, Cape Fear is offering (the pilots) fuel for free, and they’re refusing,” Benedix said. Jil Christensen, a Raleigh-based Operation Airdrop coordinator, said, as an avid sailor, her memories of earlier devastation on the N.C. coast drove her charitable work. “I wanted to make sure what happened in Hurricane Matthew did not happen during Hurricane Florence,” she said.

Christensen said her involvement in Operation Airdrop began when she joined online groups looking for her sailboat during Florence. Christensen said she was the only online group member unaffected by the hurricane and found herself in a unique position to help. “I was getting private messages, asking me to find their aunt in flooding waters, or someone was dying because they were running out of oxygen and asked me to call 911,” Christensen said. “I realized the scale of what was happening, and I realized the storm had only been going on for 14 hours.”

Christensen said the support from the community has been overwhelming, but the organization can handle even more supplies and volunteers in addition to what they are currently receiving. “We need more, and that is only because we can move 200 planes if we have enough stuff to put in 200 planes," she said. "And that means 200 planes get to destinations across the state.” The most critical supplies to donate can be found on this Amazon list, updated daily by Operation Airdrop as items go out-of-stock and as they field requests from communities and families in need.

Article Produced By
Ryan Smoot

http://www.dailytarheel.com/article/2018/09/operation-airdrop-0920