What is an airdrop? Can you play with it?
Since I entered the cryptocurrency circle, I often see some free airdrops in the group, and everyone is scrambling for airdrops in various groups all day long. What exactly is an airdrop? Today, let's take a look at what an airdrop is, whether you can play it, and how to play it?
Cryptocurrency airdrops are a marketing strategy used by cryptocurrency startups to promote projects and their new tokens. They mainly distribute the project's native cryptocurrency to existing or potential users for free. Some airdrops require users to complete simple promotional activities before they can receive them, such as following the project's social media accounts and sharing posts. In simple terms, before the project launches the token, they will distribute a portion of the coins for users to claim and increase popularity. No matter what coin is issued, all kinds of people will flock to it. After all, it is a free coin that falls from the sky, and few people will study the nature of the coin.
There are many types of cryptocurrency airdrops, and the most common method is to distribute a small amount of cryptocurrency to multiple wallets such as Ethereum or Binance Smart Chain. However, there are also rare projects that use NFTs instead of regular cryptocurrencies for distribution.
Some people may ask, are all the project owners fools? Are they just giving away money for free? Actually, you are wrong. Capital does not do business at a loss. There are mainly the following reasons:
1. As new tokens emerge in an endless stream, it is difficult for cryptocurrency investors and traders to track the dynamics of all new projects. Therefore, some cryptocurrency projects use airdrops to make the project stand out and increase awareness. The project owners take advantage of the user's desire to get the best deal, attract users, increase the number of coin holders and addresses, and make the dealer think that the coin is popular and powerful.
Cryptocurrency airdrops can incentivize recipients to use and promote a project, cultivating an initial user base before the project is listed on cryptocurrency exchanges.
2. To prepare for the price increase, you certainly can’t imagine what the airdrop has to do with the price increase. If I issue a coin, I will increase the price in the future. But if I increase the price directly, there will be no leeks to follow. If there are no leeks, no one will take the price. Should I just increase the price directly and give money to those who raised the money at the beginning? So what should I do? Airdrop plan.
The cryptocurrency world is like a large-scale battle arena. Although airdrops are free, some people make money, while others lose everything. Why is that? Airdrops are indeed very tempting. For example, last year's APT airdrops made many people earn thousands or tens of thousands of dollars with just a few clicks. On Twitter and in the community, there are screenshots of wool parties showing hundreds of accounts to apply for the test network. Some people even directly announced that they have graduated from Web3 because they have thousands of accounts and have achieved financial freedom in one battle. According to feedback from community users who applied for tokens to PANews, each account that applied for the test network can get 300 tokens, and users who mint NFTs can get 150 tokens. One hundred accounts can get 30,000 tokens, and one thousand accounts can get 300,000 tokens. It makes people shed tears of envy.
The airdrops from good projects are indeed very tempting, so why do some people still lose money or even have their money stolen? In order to prevent being cut, what should you pay attention to when receiving airdrops?
It is very challenging to determine whether an airdrop is legitimate or a scam. Before signing up for an airdrop, be sure to do your own research and be extremely cautious if you are asked to link your wallet to a website. Scammers sometimes airdrop tokens to multiple wallets, and if you are not careful, you may find that your wallet is empty.
Some fraudsters will lure people to phishing websites and link their wallets to websites that are very similar to the real ones. Once the wallet is linked and the transaction is signed, the tokens in the wallet will be maliciously emptied. At this time, you must pay attention to the correct information to prevent fake accounts that are similar to Twitter and Telegram accounts. Receive airdrops normally, unless the project requires the old wallet to be linked to the wallet of the token. Generally, a new wallet and a new email address are selected specifically for receiving airdrops. This ensures the safety of personal wallet funds and prevents phishing under the pretext of airdrops.
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