Almost the same concept as Apple’s feature of transferring files, Airdrop in the cryptocurrency industry uses coins. It is the method used by companies to introduce the tokens to future enthusiasts and potential investors for free.
What is an Airdrop?
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During the Blockchain Asia and Economics Forum 2018 held in Taguig, Philippines, the BitPinas team was able to meet with Mr. Edward Guustaaf. He is the community manager of Vexanium, a loyalty rewards platform based in Indonesia. It was during the forum that exhibitors are also giving away Airdrops and luckily, the team received 50 VEX from the Vexanium team.
So what is an airdrop?
It is a way of cryptocurrency and blockchain companies to introduce their coins to future enthusiasts and potential investors. Airdrop happens when a person, after downloading a certain wallet, gets free tokens from a company. To keep it simple, Airdrop equals free tokens. This is as long as you have the correct wallet to store the token.
Why is this done?
You might think that an Airdrop is too good to be true and there might be a catch. Actually, there is. Again, it is a way to introduce the coins to the public who will in return has the potential to make the token grow.
In our case, after receiving our free 50 VEX coins from the team, we suddenly got the urge to join its telegram group, check its status, be in the know, and hope that the coin gets traction. This is all because we have received free tokens AKA received an airdrop.
With Airdropping done, the company who hosted it hopes that it will equal to the coin’s higher acceptance and usage. Higher acceptance and usage means the token will have a higher demand = price.
To put it simply, Airdrops happen because it can spread awareness.
How Can People Participate
How to participate in this free token spree? First, you have to be in the know. Airdrops happen during big events such as the Blockchain Asia and Economics Forum 2018 that happened on May 28-29, 2018 in Taguig. This is where exhibitors were able to do airdrops to interested attendees.
A little digging on the internet can also land you to a website that showcases companies that are offering airdrops.
Few Tips When Participating Airdrops
After successfully joining an event or reaping the rewards of your extensive research, now is the time to participate in Airdrops. Here are the things that you will need:
- Ethereum Wallet – ICOs usually runs on the ethereum blockchain. Make sure your wallet is ERC20 compatible. We would suggest using MetaMask, MyEthereumWallet, or better yet the Ledger Nano S.
- NEM Wallet – Aside from ethereum-based tokens, NEM is also gaining popularity. You can download your NEM wallet directly on their website. (How to Create a NEM Wallet)
- Active Wallet – Once you got your wallet, use it. Some airdrops do random checks to make sure that users are not creating wallets to continuously receive the airdrop. Make sure you have some activity in your wallet. Some airdrops also require a minimum balance.
- Telegram Account – Telegram is the communications app of choice of cryptocurrency and blockchain companies. Some may require you to join their Telegram Group and make sure that you don’t leave before getting your tokens.
- Twitter Account – Same as having the Telegram Account, the company that will do the airdrop may require you to follow its account and probably retweet a post.
- Email Account – Now this can be a different email from your main email address. Some of them might send you a confirmation email to activate your account.
Reminders About Airdrops
- Never give your Private Key – As we’ve mentioned in “Few Tips in Participating Airdrops”, some of them may check your wallet’s activity. They won’t need to know your private key to check it, there are tools like etherscan to see if your wallet is active.
- Don’t send money/tokens to anyone – Airdrops are for free. If a person asks you to send a random amount of crypto and promise a high return, steer away. This is the usual modus of scammers, especially on Twitter.
- Check the Coin’s Official Account – If a company is doing an airdrop, it is usually posted on its official website, twitter, or telegram account.
Joining an Airdrop and receiving tokens are indeed pretty neat. You just have to make sure that it is legitimate by doing your own research and checking official channels.