Why Airdrop?
Okay! Every coin has some value so why these companies are giving it away for free?
only holds value because people believe in them and recognize their worth. The more people who own a , the more likely it is to become widely adopted and rise in value. Airdrops are effective due to the “endowment effect,” a phenomenon in which people will ascribe value to things merely because they own them.
They do this to increase their project’s visibility, increase the circulating supply and stimulate trade. It also helps them to create a community who are interested in the project. They also get your data through the form, which they later can use for marketing and giving you another promotional stuff.
Most of the airdrops are “bounty” drops, which will reward you with for completing simple social media tasks (Joining their Telegram group, reposting on Twitter, etc.). This offering creates a win-win scenario because the company gets free marketing, and you get free crypto. Other airdrops will reward you for simply holding a specific coin without expectation of any reciprocal consideration.
With doing bounty airdrops or free airdrops a company can create mass awareness about their project, or pre-ICO with minimal cost. Social media campaigns allow the project to become visible to people who would otherwise never recognize its existence. Airdrops can also create a vast network of users who are motivated to push a project’s success by doing things together like winning community votings for exchange listings.
By rewarding owners with free airdrops, projects can also encourage users to hold (HODL) their coin for the long-term. This can effectively lower the selling pressure of the coin. Holder airdrops have been a popular tactic amongst some of the most successful crypto projects, like NXT, WAVES, Bitcore and more.
Published at Sun, 17 Mar 2019 18:19:50 +0000
