What is Airdrop?
An airdrop is a marketing tactic in which a company distributes tokens or cryptocurrencies to a large number of wallet addresses for free. This is done to generate awareness about the project and to distribute tokens to potential users.
How Does Airdrop Work?
Companies announce an airdrop by releasing information about the distribution and the rules for participating. Users can then perform certain tasks like sharing a post on social media, joining a Telegram group, or referring friends to receive tokens.
Benefits of Airdrop
- Generate buzz and awareness
- Attract new users
- Reward loyal customers
Examples of Successful Airdrops
Many blockchain projects have used airdrops to successfully promote their cryptocurrencies. For example, EOS conducted a year-long airdrop that distributed over $1 billion worth of tokens to EOS holders.
Case Study: Stellar Airdrop
Stellar, a decentralized payment network, launched an airdrop in 2019 that gave away $125 million worth of XLM tokens to users of the messaging app, Keybase. The airdrop helped Stellar gain new users and increase its token’s value.
Airdrop Statistics
In a study by Airdrop Alert, it was found that 74% of airdrop participants are more likely to hold on to the tokens received rather than selling them immediately. This shows the potential for airdrops to create long-term value for a project.
