Cryptocurrency airdrops practically involve distribution of free cryptocurrency tokens to people who showed an early interest in decentralized applications, new blockchain services or cryptocurrency projects. What is the purpose of airdrops crypto? One would assume that they are a flexible way for someone to get their hands on cryptocurrencies.
The details of crypto airdrops explained for beginners would also emphasize its role as a marketing tool for new protocols to draw in more users. Free airdrops can easily encourage more users to fuel activity on the new protocols, which have not come up with their native tokens. Many crypto enthusiasts have also capitalized on free airdrops for scaling up their returns with considerably limited upfront investment. It is clearly evident that crypto airdrops have gained notorious popularity in recent times for valid reasons.
Primary Goals of Crypto Airdrops
The overview of cryptocurrency airdrop basics suggests that their primary objective is the promotion of a new blockchain solution, project or startup. Distribution of tokens through an airdrop helps the new protocol or project start up.
Examples of Cryptocurrency Airdrops
The GAS DAO has also conducted an airdrop on the Ethereum blockchain recently. It distributed GAS tokens to anyone who had paid $1599 or more worth of gas fees on Ethereum. Almost 57,000 addresses qualified as recipients of the cryptocurrency airdrop and claimed their rewards from the website. GAS tokens offer voting rights in the GAS DAO, which can emerge as a representative of the active users of Ethereum network.
Some risk also involve regarding this to stay safe from data theft,private key theft.