Rancakmedia.com – If you want to know an explanation about what is Airdrop and types, you can easily get this information in the article that we have provided below.
You need to know that airdrop is a marketing action in the cryptocurrency business and has a very important function.
To keep customers connected to their services, some businesses give away free cryptocurrency to those who have it.
This airdrop approach is new to the crypto industry. So the regulations involving airdrops are still being created. Airdrops are becoming more popular and widely used, which is why it is important for everyone with cryptocurrency to understand what they are.
What is Airdrop in Complete
Cryptocurrency An airdrop is a marketing campaign in which a crypto or blockchain project distributes tokens for free to crypto holders who have met certain conditions or to participants who meet the campaign requirements.
The goal is to increase awareness about the project, expand the user base, and strengthen the crypto community.
Airdrop is a promotional activity in marketing, which is usually carried out to increase public awareness of new crypto asset products.
This airdrop can also be used to increase trading volume on the exchange platform when it first launches on the ICO exchange. One of the digital assets that has had a pure airdrop is Auroracoin.
In 2014, Auroracoin (AUR) was recorded as the first crypto asset to distribute free coins amounting to 31.8 AUR to Icelandic people who were participants in filling in population data.
Before distributing crypto assets to users, usually the company or organizer will announce a specific date to do so.
At that time, the team managing this activity will take a snapshot of the blockchain, so that crypto asset owners or specified parties will receive e-tokens for free.
Types of Crypto Airdrops
Below are several types of Crypto Airdrop that you need to know, as follows:
- Random Airdrop This type of airdrop is carried out randomly by certain blockchain projects to introduce their tokens to the public. Lucky token holders will receive new tokens for free without having to pay anything.
- Bounty Airdrops In this type of airdrop, a blockchain project rewards users for completing certain tasks, such as following them on social media or promoting their project. Prizes are usually given in the form of tokens.
- Airdrop Holders This type of airdrop is awarded to holders of tokens already in their wallets. Eligible token holders will receive a number of new tokens for free based on the number of tokens they hold.
- Forked Airdrop A forked airdrop occurs when a blockchain project forks and existing token holders at that time will also receive new tokens resulting from the fork. For example, Bitcoin holders receive Bitcoin Cash for free when Bitcoin is forked into Bitcoin Cash
Why You Should Use Airdrop
Cryptocurrency is actually not a new phenomenon. But there are still many people who haven't tried it. The crypto industry is booming and widely used.
There are various kinds of cryptocurrencies that were formed with the aim of being superior to previous currencies. When a new cryptocurrency is introduced, it's a great time to leverage airbuds for promotion.
Additionally, airdrops are an effective way to find new cryptocurrency holders. To be able to obtain an airdrop, wallet holders usually have to fill out many online forms.
That way, companies can attract customers who have the option to remain loyal to their services.
How to Get Info About Airdrop
Cryptocurrency airdrops are often used as a promotional tool. Based on how to obtain it, there are several types of airdrops, including:
1. Standard Airdrop
This type of airdrop only asks you to register and receive updates or newsletters through the provider's site. You only need to provide your name and email address.
2. Bounty Airdrop
Usually, you have to perform some tasks on social media, such as sharing a website link or inviting your followers to participate in a campaign or activity organized by the company. You will be rewarded with crypto assets for every task you successfully complete.
3. Airdrop Holder
This type of airdrop requires you to have crypto assets certain items stored in your digital wallet, such as Bitcoin (BTC) or Ethereum (ETH). You will receive airdropped assets according to the ratio set by the provider.
4. Exclusive Airdrop
This type of airdrop is usually hosted by a website or social media account that has a large following. You as a member of the site or follower of the social media account have the right to participate in the sharing of this exclusive crypto asset.
Advantages and Disadvantages of Airdrop
Currently there are many companies producing new cryptocurrencies. So it is natural that the competition between these companies is quite strong.
That's why they use airdrops as a form of promotion. It is hoped that their company can stand out more than others. Several startup companies also list the advantages of the airdrops they provide.
Of course in any business there are always good and bad. If a large number of people are willing to pay with it, it will gain value.
To attract as many people as possible, it is necessary to set prices to promote services. This is what startup companies achieve using airdrops.
Therefore, airdrops are not always profitable. There are various companies that try to deceive customers with promises of Airbuds, even though this is very detrimental to customers.
Airdrop Scams in Crypto
As crypto wallet holders, we must be wise and seek as much information as possible. Don't be quick to believe in excessive promises. Some examples of airdrops that are hoaxes include:
1. Dump Airdrop
Not all airdrops aim to focus on building a community and increasing the value of a new cryptocurrency.
Some only aim to create a short-term sensation so that certain tokens or coins immediately sell on the market and reach exchange rates.
Once they can be exchanged, the company will sell (dump) all the tokens to make a profit. Once they sold all the tokens, the company simply dissolved.
When an airdrop project goes dark, it goes dark fast. The token is still valuable, that's true. As a result, cryptocurrency holders have nothing to fear. However, from the start the company's goal was only to make a profit.
2. Airbud Private Key
The second type of fraud is completely fictitious in all respects. The airbud project is mainly aimed at defrauding wallet holders. By tricking the wallet owner into handing over the private key to your wallet.
A valid airdrop will request info about its recipient's wallet address which can be made public. Airbuds will ask for your private key to access your wallet. Obviously this is a scam. Never provide this type of personal information.
3. Collecting Personal Data
The second type of fraud is obtaining the wallet bearer's personal data. The goal is to sell it to third parties or use it for further fraudulent activities.
The main goal is to collect personal information about wallet owners, such as email addresses, social media accounts, and so on.
Airdrops play an important function in the crypto world. Since it's still in the prototype stage, things will get more interesting from now on.
Conclusion
Crypto Airdrop is a marketing campaign in which a crypto or blockchain project distributes tokens for free to crypto holders who have met certain conditions or to participants who meet the campaign requirements.
That is the information about what Airdrop is and its types in the world of cryptocurrency, hopefully the article above can be useful and helpful for all of you.
