Cryptocurrency market grabbed everyone’s attention in 2017 with an exponential rise in its prices. New virtual currency platforms have been coming forward and investors have been trying to invest wisely in them. Bitcoin has been the most popular cryptocurrency in the world. The high volatility of cryptocurrency industry made investors invest in various currencies, instead of focusing on only one. Digital currency developers have started to market their currency in innovative ways to gain mass adoption. One of the innovative strategies adopted by the currency developer is to ‘airdrop’ it for free. The developers have decided to give away their new minted tokens for free to existing holders of bitcoin, ripple, Ethereum, and others. Matthew Roszak, co-founder of enterprise blockchain-technology company Bloq, said, “In certain ways people are getting free lottery tickets. There will be a tsunami of airdrops this year.”
Other experts also estimated that there will be flood of airdrops this year as new cryptocurrency platforms set to make their presence felt in the global market. In the early March, some of the holders of cryptocurrency ‘neo’ received another digital coin ‘ontology’ for free. This token gave holders voting rights to a platform operating in data and identity verification services. According to the release, ontology started trading on Hong Kong-based exchange Binanceon on Wednesday. According to Fundstrat Global Advisors, developers behind a site called Everipedia, a platform similar to the ethereum’s Callisto Network, and a smart-contract system known as United Bitcoin will be giving away digital tokens for free this year.
Digital currency developers have been spending their money on marketing their currency by giving it away for free rather than printing T-shirts and billboards. The ontology developer OnChain said that it would give away 20 million coins or 10 percent of its total tokens to neo holders. For every neo, investors could acquire 0.2 oncology tokens. To execute airdrop, developers of new digital coin can offer holders of various cryptocurrency an opportunity to receive upcoming token for free. Moreover, distributing digital coins for free through public blockchains is one of the best ways to utilize public networks.
Cryptocurrency developers have been looking for utilizing transformational power of technology through a widespread use. However, there is a lot of interest about digital currency, but adoption remains very low. Developers have adopted this airdrop approach for customer acquisition. Spencer Bogart, partner at San Francisco-based Blockchain Capital, said, “Slipping money into someone’s pocket is a powerful way to get their attention.” He added that airdrop strategy could lead to mass adoption of new cryptocurrency better than initial coin offering (ICO).
Commenting on mass adoption, Erik Voorhees, CEO of ShapeShift, a platform for trading digital tokens, said, “When you give something to someone for free they will pay a little more attention than if you ask them to sign up. Imagine if Walmart could put some kind of asset into everyone’s bank account in the U.S.”
Another benefit of airdrops is developers can use it to roll up the price of existing coins. The prices of existing cryptocurrency token can go up if investors buy it to get hold of new cryptocurrency tokens. There are many marketing strategies for launching new cryptocurrency, and airdrops is one of them. This year, there will be plenty of new digital currency platforms coming in and there will be plenty of airdrops. It is up to investors to determine whether they want to opt for it or not.