Crypto Global

Airdrop

Jun 29, 2021

Last week, the President of El Salvador had announced a new nationwide Bitcoin airdrop program for mobile wallets. The government will send Bitcoin (BTC) worth 30 US dollars to every registered user in cooperation with a mobile wallet service provider «Chivo».

But what is a cryptocurrency airdrop actually? An airdrop is a free issue of tokens or coins to wallet addresses that hold the crypto community and is a marketing stunt for the cryptocurrency market to promote awareness of a cryptocurrency. Other reasons why someone or a company does airdrops is to increase the circulating supply, to generate a greater reach, but also to receive data from users. Basically, a lot of companies - in this case a government - airdrop when they want to get the brand out there so that more people use a particular product. A legitimate crypto airdrop never looks for capital investments in the currency. The main goal is pure advertising. In this regard, El Salvador promotes «Chivo». For this advertisement, the El Salvador government now has to buy the required BTC to distribute, which will add more than $100 million to buying pressure on the markets.

There are several types of airdrops:

1. You register and are then given tokens/coins for free without any interaction being required.

2. You get the Airdrop in return for social media advertising measures to accelerate the growth of the community (bounty program)

3. You have to hold a certain token/coin and then get another token/coin as an airdrop for a pre-determined snapshot.

What to keep in mind with an airdrop is that every registered user should understand that those who perform the airdrops generate data with an email address or that users follow through their social media channels. For those who want to get crypto for free, get involved in airdrops and bounty programs. While some Airdrops only require an Ethereum wallet address, most projects require that one use the product that the project is creating. Some projects gave a lot of crypto tokens to their participants. One of them was Uniswap last year, where anyone who traded with Uniswap received 400 UNI tokens straight into their Ethereum wallet. So if you used Uniswap before, you received 400 UNI tokens. Those who have been involved in such airdrops have generated some pretty interesting profits from it.

In the cryptocurrency business, there are many ways to avoid being locked out of the cryptocurrency markets when one cannot afford to buy crypto. You won't make a lot of money with these methods, but they are perfect for people who have some free time to receive cryptocurrencies for free.