Cryptocurrencies have become a trend these days. The majority of the people are curious to learn more about them and how these new-age currencies can help them financially. Today, we will discuss the least discussed topic, Crypto Airdrops.
What is a Crypto Airdrop?
In the world of cryptocurrency, an airdrop means a marketing stunt that focuses on sending small amounts of the coins or tokens to wallet addresses of active members of the blockchain community. The primary aim of this exercise is to create an awareness of the newly launched digital currency.
Understanding Crypto Airdrop
Now that we’ve understood the motive behind a crypto airdrop, we need to shift our focus on why companies opt for such a marketing style? The reason is simple, the digital currency is the new kid in the block, and its company want more people trading in it when it gets listed on an exchange as in an initial coin offering or ICO.
Who can receive these airdrops?
Airdrops are generally given only to current holders of crypto wallets, usually those of Bitcoin or Ethereum.
To qualify for an airdrop, users are required to hold a minimum quantity of crypto coins in their wallets. Alternatively, users may need to perform a certain task like posting about the digital currency on any social media forum, introducing people to the newly launched cryptocurrency.
A legitimate crypto airdrop will only focus on promoting the cryptocurrency and would never seek a financial investment. There are many companies that scam involves people sending portions of bitcoins or other cryptocurrencies.