What Are AirDrops?
Airdrops are becoming a common marketing tool for coin projects. Whether you are a recent addition to the world of cryptocurrency or if you have been around since Satoshi Nakamoto was still writing the Bitcoin Whitepaper, you probably know what an “AirDrop” means to crypto enthusiasts. Let us first look at the definition of the term as defined by Google’s built-in dictionary.
When searching the definition of “Airdrops” you find this:
- 1.an act of dropping supplies, troops, or equipment by parachute from an aircraft.verb
- 1.drop (such things) by parachute.
More recently, approximately 7 years ago Apple devices got a new feature, this is where the modern AirDrop was first seen. Apple AirDrops are similar to bluetooth file sharing, and much like the old stuff-falling-from-a chopper definition, this is about things being delivered from one party to another.
AirDrops to those involved in the world of cryptocurrency are events during which a coin or tokenized project distributes tokens or coins to early adopters, totally free.
Interestingly, the idea of something being delivered, or supplied by an aircraft is quite well aligned with the more modern association used in the cryptosphere. To members of the crypto community, an AirDrop means free tokens or coins that are usually given to participants as a gift, and often times this free gift turns into a substantial amount of money when exchanged. Who says no to free money? Even though the freebies in an airdrop don’t fall from a military chopper, like the term used to imply, the airdropped tokens or coins do seem to magically appear from the sky since usually, the only requirement is the participant’s knowledge that the AirDrop has been scheduled and ownership of that particular token or coin digital wallet. Sometimes as a part of the criteria to be on the receiving end is that the wallet owner holds a certain amount of a specified cryptocurrency.
An example of an airdrop that had tons of participants is The Deep Onion project who has risen from $0.11 to $3.14 at the time of writing. OmiseGo, a project who held a very popular airdrop, required participants to have Ethereum. The coins started at $0.60 in value and are now worth $14.50 at the time of writing. That is a huge jump, and many people received thousands of them for free!
A coin airdrop may be done on any blockchain. The most popular ones are bitcoin and ethereum but we see them on Komodo, NXT, Waves, and many others as well.
Due to the phenomenon of the rise in crypto awareness, with the value has come many opportunistic scam artists. Always stay on your guard, because where there is potential to profit there is potential for abusive activity, and with the mostly concealed user base, criminals like cryptocurrency. They ruin all the fun, so please make sure to exercise good judgment. Do you due diligence and make sure the project you are working with is actually a viable, working project. Even beyond this, you should verify that the people claiming to give the tokens away are not imposters. Never share passwords and more importantly NEVER SHARE YOUR PRIVATE KEYS WITH ANYONE NO MATTER WHAT or you will surely be scammed.
How To Get In On The Action
If you have not yet, you should register an account at bitcointalk.org and try to frequently post and reply to others in the forum to help increase your ranking there- which leads to better inside deals and special invitations to AirDrop clubs. It is the best way to keep up to date with news and sometimes you must have a certain amount of time in the forum before you can even apply to some of the AirDrops. There are also many Facebook groups, just do a quick search using the term airdrop.
Why Does Anyone Give These Freebies?
To raise awareness for their crypto-currency project what better way to secure loyalty from early adopters than to offer them a reason to hang around.
What Are They For?
The free coins or tokens you receive are mostly worthless at the start. Most people will probably try to sell them on exchanges once they are able to do so. The rare beauties like bitcoin will be worth A LOT more than they start out at. Can you imagine being one of the adopters who received hundreds and even thousands of free bitcoin? If anyone from those days managed to hold on to a few- they might be millionaires now.
At the start of this post, there was no satisfactory definition available in Urbandictionary.com’s database for the term “AirDrop”. So we added one and it was accepted a moment ago. Check it out here for laughs but look for the creator named Lorilikes or you are going to see unpleasant definitions. Read at your own risk. -> UrbanDictionary.com