Hello. Can somebody explain to me what is airdrop and how it works? How company organising airdrops make money on it? Is it all about marketing? Thanks
Airdrops are a free tokens which you can earn for doing a simple tasks on different social media. The company is given out cryptocurrency/tokens in order to attract new investors and to increase their userbase. Main reason for airdrops is to get users who spread the word about new project all arround the internet on social platform. Normally company allocates chuck of tokens for airdrops before the tokens goes for public sale.
Airdrop is a form of gift from developers of a given cryptocurrency and an effective marketing tool. The airdrops take place at the moment of announcement to the network of the block with a predefined number. If Airdrop is scheduled for block number 50, at the time of announcement of the block in the network, we receive a new currency. In the case of airdrops you get new cryptocurrencies in a certain ratio, often higher than 1:1 e.g. 1:10.
To receive the Airdrops, often the only requirement is to store coins from the appropriate block in your wallet. Examples of such drops are Byteball, Stellar lumen and OmiseGo.
It happens that airdrops are a surprise. It is worth checking your wallets, because it may turn out that you received a nice gift. Platforms such as Waves or Komodo surprised their owners by making airdrops without any notice.
Airdrop is basically a drop, i.e., distribution of free crypto in the community. The purpose of this is to arouse interest around a given project and increase its demand, which translates into higher prices.
There are two types of free token distribution. As a reward for having specific cryptocurrencies in wallet and giveaway - a free airdrop for doing a few simple steps.
At the first opportunity we are rewarded by project developers for keeping cryptocurrency on their official wallets. Personally, I've already received aidrop many times at the ETH, NEO or Waves wallets. Depending on the funds we have, we get directly proportional amounts of "dropped" tokens. The bigger the capital, the bigger the rewards.
The second option is available for everyone. It consists mainly in filling in a form, in which you usually have to use social media to: "Like", sharing, subscribing to/observing the indicated accounts or profiles. Finally, we provide our public key, i.e. the wallet address, so that after the action is over the funds will land there.
Most airdrops are carried out on the Ethereum platform, so the ERC20 token wallet, called MetaMask, will definitely be useful.
I also recommend token wallets on the NEO platform - as well as the Waves desktop wallet, which can be downloaded here https://wavesplatform.com/.
The basic requirement is also to have accounts in services such as Facebook. Twitter, Telegram, Medium, Reddit, Instagram.
Airdrop is a function written in a programming language that sends information to selected addresses in a blockchain-based system. In this case, about the 'drop' of new tokens.
The developers of the project whose currency will be 'dropped' on the wallets record the current state of the blockchain (by taking a 'snapshot'). Depending on the number of tokens owned, e.g. Ethereum, we get a certain number of new tokens. For example - we own 1 ETH, so we get 500 X tokens. Proportionally - if we owned 10 ETH - we would receive 5000 of them.
To receive tokens Often... you don't have to do anything - you just need to have certain tokens on your wallet (e.g. MyEtherWallet) - for example Ethereum or just have such a wallet (the condition is to have transactions on it - it cannot be empty). Another way is to follow projects and wait for the tokens to drop - in this case you just need to register on the project website and enter your wallet address.
Airdrop can serve various purposes - marketing, to promote some product based on new coins, or for example, functional - dropping a token that will have some utility.
If the tokens are not yet valued on any exchange and cannot be sold - this is usually the case with airdrops, as they characterize the initial phase of the project - it remains to wait for information on cooperation with exchanges to be able to send and exchange them for such.