What is an Airdrop (In layman’s terms)
What is an Airdrop?
Airdrop is a term you will commonly hear associated with the cryptocurrency market. When referred to in relation to cryptocurrencies, an airdrop is a type of promotional token, or coin giveaway, not to be confused with the rather dated and unnecessary Apple sharing AirDrop or the literal meaning: Goods being dropped from a plane with a parachute. (Though you will often see cryptocurrencies visually represent their version on an Airdrop with a coin or logo attached to a parachute… As seen above.)
Why are they important?
Airdrops provide coin-projects with a very valuable tool to build their communities. Just as new stores sometimes hold an ‘opening sale’ to attract new customers, coin projects give away tokens to attract new users to their projects. Even though these companies are giving away a part of what could be profitable for free, it helps spread the word about their project through social media, or by incentivized community-building tasks.
How they are used?
For the people who participate in an Airdrop, the Airdrop becomes an important asset because they convert to monetary value once a project is listed on a cryptocurrency exchange. From there people can choose to hold, (hodl if you’re a crypto fan who can’t type) sell or trade their tokens, which now have value.
This means people are rewarded for participating and helping with community growth. Wouldn’t everyone love a bonus for telling a friend about something you like? Some companies have referral programs for this very reason. One way to think of an Airdrop is as a cryptocurrency referral bonus.
Current Issues with Airdrops:
As great as Airdrops are, there are still many issues that make it difficult for people to get them. This also hurts the companies that offer them. Since every company has its own rules for how, when, and why people receive Airdrops, and Airdrop value can vary, it can become a hassle for people to go through all the needed steps to receive their bounty. This could include anything from needing to sign up, follow and post on multiple social media accounts, write content, and sometimes give personal information to a company which the participant might not know much about.
The other main issue for people who like to collect Airdrops and don’t mind going through the hassle of signing up for each, is finding them. Currently, it is becoming harder and harder for coin projects to promote their Airdrops, ICOs or related content because of ever-changing restrictions from companies such as Facebook, Instagram, Medium and email services such as Mailchimp, Constant Contact and Get Response. Without access to social media networks, it can be nearly impossible for a budding project to get news of their Airdrop to their communities.
Finally once a participant has successfully signed up for an Airdrop, often after the Airdrop is complete, there is little notification about progress from the company or effort given to keep the participant engaged.
How can you get them?
People who are new to the world of cryptocurrencies and Airdrops will probably have a hard time in the beginning knowing what to look for or where to look when it comes to finding the right Airdrop to participate in.
The most popular ways of finding out about new Airdrops include things like checking an Airdrop listing website, being part of a telegram channel or subscribing to a twitter account that regularly posts about new or upcoming Airdrops. However, this method still has its as it leaves it up to the user to discern which Airdrop is credible or worth the effort. Diligence is required on the part of the participant to ensure they claim their reward and keep up with the project after they’ve invested time and energy to help with community growth.
The Good News:
Although airdrops are still flawed, the good news is that they are still new and it is still growing. More and more companies are investing money and setting aside coins and tokens for those who are willing to go and claim them. With so many opportunities to receive rewards, the amount a coin collector can make through Airdrops alone is substantial, especially if the company’s coin or token goes up in value over time.
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