If this term seems familiar to you, it might be because you are an avid player of PUBG or Fortnite. It could also mean that you are a cryptocurrency trader who likes to take part in giveaways and get free coins. Since you are reading this on a Crypto based platform, then the topic is definitely going to look into the latter. If you were here because you are a gaming fanatic, then this article might still be useful to you by increasing your knowledge. Let’s start by addressing the elephant in the room. Air Drops are basically a promotion. It is a way to introduce or advertise a cryptocurrency to its potential customers. If a company decides to do an AirDrop, then it must be because of one of the following reasons.
1) Generating Awareness:
What happens when a company launches a coin and no one takes it? Simply put, the coin is lost to time. About 80% of the cryptocurrencies launched do not make it past the first year due to lack of trading. But what if there was a way to guarantee that people will have your coins in their wallets and a hype will be created for your offering. In come AirDrops. A lot of people who are risk averse love to participate in Air Drops since it is Risk free. If the coin goes up in value in the future, then profit to them. If it doesn’t, then it’s no loss since they did not spend anything on it. As for the company, those people who got their coins are now users of their currency. A win-win and a nice marketing tactic.
2) Distribution of Tokens:
If only a few people have the majority of your currency, then that might be a problem since it will no longer be decentralized. This in turn will lead to less trading and ultimately won’t be advantageous for the company or the people who don’t have the majority share. An example of this would be taken gold in place of cryptocurrency. If 70% of gold was owned by one person and the rest of the people only owned a fraction each, the guy with the share would be the one in power. To overcome this issue, the company gives the minority shareholders free coins so that they can restore a little bit of balance in the overall possession of their currency.
3) As a loyalty reward:
Since people get into cryptocurrency trading just to make a profit, chances are that they are going to switch brands very easily. Anticipating this, companies can launch Air Drops to make sure that those people find value in their offering and continue to use and trade with their currency.
4) Understanding the audience:
The main offering by any company is focused on providing a solution to a problem. Most of the time, this problem takes a lot of time identifying and an even longer time preparing a solution for. Chances are, you cannot guess the problems of your customers. This is where Air Drops are used to get that missing information. A short survey, A follow on your social media, a share of your brand, and other actions are all methods in which companies can get connected with users and in the long run understand their needs better. If you were receiving free coins to fill in three yes or no questions, would you do it?
But it is only fair to warn you readers! There might be scams as well in which hackers give airdrops while asking for your private key. Never ever give your private key to anyone under no circumstances.
All in all, AirDrops are beneficial for individuals as well as company’s since they are getting something for free. There is a certain value associated with a coin and even if it is $0.01, you are still getting $0.01 for absolutely free. And who knows, maybe that same cryptocurrency might increase in value meaning you get more for absolutely free. Do your own research, make sure the company is legit and get set for the future of trading. Also watch out for Tyslin Coin’s AirDrop coming soon.