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What is Airdrop in Cryptocurrency Market

What Is Airdrop in Crypto World?


 Airdrops is the process  a cryptocurrency enterprise distributes cryptocurrency tokens to the wallets of some users free of charge.Airdrops are usually carried out by blockchain-based startups to bootstrap their cryptocurrency projects. Also, established blockchain-based enterprises like cryptocurrency exchange platforms and wallet services can also carry out airdrops as well.and users can get token to their wallet this is a distribution by cryptocurrency enterprise.

Why Do Free Crypto Airdrops Occur?


There are several motivations for carrying out cryptocurrency airdrops, right from creating the hype and buzz to actually distributing the whole supply of coins/tokens.
Some of the reasons for carrying out crypto airdrops are:

Why Do Free Crypto Airdrops Occur?

There are many reason and to bring airdrop by cryptocurrency enterprise mostly they want to the hype and buzz of their tokens
and motivating to person for carrring out cryptocurrencies. So they launch the airdrop and by that airdrop user can get token/coins
Some of the reasons for carrying out crypto airdrops are:
Even Distribution Of Total Token Supply
One proper reason for airdrops is to evenly distribute the total token/coin supply so that there is less centralization in terms of bagHODLer holding a large sum with themselves.
Omise gave away five percent of their OmiseGO cryptocurrency to holders of Ethereum in September 2017.
In this case, OmiseGO took the advantage of already distributed Ethereum economy to distribute their tokens too.

  • Rewarding Faithful Early Investors


Many cryptocurrencies want to reard and gift of thier early and fast joined the investors who bought their token or they joined their airdrop. Also some cryptocurrencies offers them a free token/coins this is also known as their reward program.
This also motivates early investors to hold their parent tokens for longer durations and overall I feel it is a good way of rewarding.
  • Awareness About The New Crypto

In Some type cryptocurrencies offer some coins like Ethereum, Walton, EOS and many other Crypto to just the persons who spreading awareness, The airdrops are carried out for the HODLers
  • Marketing & Hype

The most famous and common way is nowday in tread to do Airdropping coins/tokens for the purpose of marketing and colleting just the Leads for further business for business boosting.
You will also find projects running schemes such as:
(TEU) is airdropping 125.000 USD in TEU tokens to first 15,000 airdrop participants!
Get up to 60 REPU tokens free just by joining Telegram!
#ApolloDAE referral airdrop for Telegram users!
50 SYN tokens free when you sign up!
So this a kind of airdrop cum bounties for doing minor tasks like signups, referrals or joining Telegram and following on Twitter etc.
  • Hard Forks

Another popular way is to fork popular cryptocurrencies like Bitcoin, Ethereum, Litecoin, Monero and create a new coin, to be distributed to existing holders of these parent coins. CoinSutra has supported few airdrops that happened in the past through such forks, some of which were:
Bitcoin Cash
Bitcoin Gold
Bitcoin Diamond
Litecoin Cash
Now the million dollar question – How to know about such airdrops? Good question, considering it is one of the easiest ways to make money.

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