In crypto world you might have often heard the team “Airdrop”. What does it mean? Aren’t you curious to know? Well, it is very much different in meaning as it sounds.
In simple terms Cryptocurrency Airdrop is a process where blockchain based projects or companies offer free tokens or coins to their community. So from now when you hear about a Airdrop happening, it may sound interesting to you as It could result in some free tokens or coins added to your portfolio.
To explain is further if you have XYZ coin/token in your wallet for an example and you hear an announcement from XYZ block chain project that they will be heading an airdrop and you will get certain value of their coins/tokens for free then you will receive free value tokens/coins in your wallet of the same block chain.
Airdrops usually are of 2 types.
1. Automatic Airdrops – This kind of Airdrop is a result of fork in a blockchain. For example- Bitcoin fork resulted a split into network and Bitcoin cash emerges from this network split. So anyone having Bitcoin in the blockchain received same amount of Bitcoin cash in their wallet.
2. Incentive Oriented Airdrops- These kind of Airdrops can be termed as marketing strategy which is used to attract potential investors. It’s a great way to promote a new blockchain project by offering some free value of tokens/coins as a result of helping the project spread to the world.
Many of the companies offer people free tokens if they promote a new project to their community. Companies offer great value to the people who have power to influence others. For example- Many people have huge list followers on twitter, have popular website or good community on reddit or other popular social media then they can receive great value of free airdrops just by spreading and promoting the new projects on their communities.
In other words Airdrops are the simplest way to promote a new block chain based project or business. It also helps to accumulate database of potential clients and customers. Many people are just earning a lot of money without any investment by just participating and spreading new projects and as a result they are offered coins/tokens in airdrops.