What Is Token Airdrop?
Defi Airdrop is free coins that are directly deposited into your wallet. Although at first, it may seem like a scam, these are actually marketing strategies for a number of companies that provide them great returns over time.
Wondering why companies have to do that then?
There’s a couple of reasons for that:
Aiming to create awareness — Though ICOs have been popular for the last two years, only a handful of them have managed to get to the people. There are several other ICOs out there that remain unnoticed.
Thus, these ICOs give you some of their tokens to get you involved in their system, in which you will then learn about their project and spread word about them.
To collect user information — Many Defi airdrops will ask you to fill out a form on a website that asks personal questions to get to know you better.
These will include your email address, the public address of your Ethereum tokens, and ask you to join their social media community on various platforms. By doing so, ICOs can collect valuable information which they can use to develop more relevant marketing strategies.
What are airdrops?
Many cryptocurrency companies issue free coins to increase their project’s visibility, increase the supply of coins available in circulation, and promote trade. These distributions are commonly known as airdrops.
The drop you find on EOS is most likely a “bounty” drop, which offers tokens in trade for completing social media activities (Joining their Telegram group, reposting to Twitter, etc.).
This scenario creates a win-win situation since the company receives free publicity and you receive free crypto. Different airdrops reward you just for holding certain coins, without expecting anything in return.
How do claim airdrops?
Claim processes differ from project to project. Some projects use “holder drops” to drop tokens into the wallets of users who own the required coin. Others rely on snapshot claims, and are only available to holders of the required token at the moment of the snapshot.
An example of a holder airdrop is Byteball, which was originally distributed to Bitcoin holders.
Byteball also airdropped additional Bytes to any Byteball holders who held the estimated amount of BTC/GBYTE during the drop. These drops can create significant interest which often leads to significant price action for a given coin.
It is likely you will need active social media accounts on Facebook, Twitter, and Telegram in order to take part in bounty airdrops. Additionally, you should have a Bitcointalk.org account in case some airdrops ask you for proof of ownership in the forum threads.
Most bounty programs will require you to join a Telegram group and share posts on the social media platforms Facebook and Twitter. Once these steps have been completed, you should fill out a form with your usernames and wallet address to reserve your rewards.
The following cryptocurrencies were initially distributed for free:
- Stellar Lumens
Those with strong hands were able to accumulate significant wealth by holding these airdropped coins and their increasing volatility. This is a highly recommended practice to HODL your airdrops.
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