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Cryptocurrency, Featured

Understanding The Concept of Crypto Airdrops

Crypto airdrops strategy is a crucial factor that helps in spreading awareness about cryptocurrency projects. Airdrops are communicated through the official channels and cryptocurrency communities. Tokens and coins are sent only to specific wallets based on blockchain networks or coins. Startups use this strategy in the cryptocurrency space and airdrop is a marketing method. This strategy is extremely useful in further popularizing the concept of decentralized finance and can break free of the monopoly of centralized finance. It is in the best interests of crypto users, especially the new users to know and understand the concept of crypto airdrops strategy.

Concept of Airdrops Strategy

Airdrops strategy is a promotional activity that was performed by blockchain-based startups to help promote a virtual currency project. This strategy helps in spreading awareness of cryptocurrency projects and helps people to trade in it when it is listed on exchanges such as initial coin offerings or ICO. However, startups have their discretion on where to use this strategy. This is why they may promote airdrops on social media, cryptocurrency forums, and company websites. 

Specific wallets based on the blockchain network or having coins in existing wallets are the only ones to receive tokens or coins. Recipients may need to have a minimum quantity of crypto coins in their wallet to qualify for a gift. Performing a certain task such as posting about the currency on social media forums and connecting with particular members of blockchain technology. 

Crypto Airdrops Types

There are several types of crypto airdrops based on goals and needs. 

Bounty Airdrop

Bounty crypto airdrops take place only when users perform a particular task. These activities may include increasing awareness of the project through several channels. 

Standard Airdrop

This is by far the most common type of crypto airdrop strategy. These participants receive an airdrop by simply expressing their interest to receive an airdrop. However, individuals interested in airdrop should provide a valid functioning wallet address. Some standard airdrops may need some additional information because of security issues.

Holder Airdrop

The holder airdrop strategy implies that participants need to hold a certain quantity of tokens or coins in wallets to qualify for rewards. The amount of new tokens often correlates with the amount and duration of existing coins and tokens.

Exclusive Airdrop

The exclusive airdrops require participants to be chosen or summoned by the project team or partners to accept the tokens. These offers are similar to special offers given by retail companies to their regular customers. Therefore, the exclusive airdrop strategy is slightly longer and not instantaneous. This is because the selection criteria are based on contribution, expertise, influence, and reputation. 

Notable Advantages of Crypto Airdrops

Crypto airdrops strategy is beneficial for cryptocurrency companies in many ways.

Competitive advantage

Cryptocurrency startups are mushrooming in large parts of the world owing to the growing popularity of cryptocurrencies. This naturally leads to stiff competition among startups. Therefore, businesses seek to gain some competitive advantage by devoting themselves to crypto airdrops to alert users and listing services. 

Rewarding Loyal Patrons

Crypto airdrops strategy is the easiest way to reward loyal patrons of blockchain networks. These rewards help in improving credibility and help existing token holders. 

Economical Means of Marketing

Most crypto startups often face liquidity crises and therefore choose economical means of marketing. Airdrops serve as a cost-effective means of marketing compared to most conventional market techniques.

Also Read-  Earning Passive Income Through Cryptos

Bottom Line

Crypto airdrops are an innovative and popular method for blockchain projects. These use several strategies such as standard, holder, exclusive, and bounty airdrops. Each strategy has distinct advantages, disadvantages, features, and applicability. In the context of crypto companies, airdrops strategy is highly beneficial because it helps in increasing the user base and improving customer satisfaction.


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