What Are Airdrops and How to Use Them
Airdrops are free distributions of cryptocurrency utility tokens offered by companies to provide access to their service to current or potential clients. As the blockchain network grows, so does the number of floating cryptocurrencies in the market. Hence, if an organization launches its own cryptocurrency, it might ‘airdrop’ some to attract more customers to their newly introduced digital coin.
In technical terms, an airdrop can be expl ained as assigning private keys of a certain cryptocurrency to pre-existing users so that they can start using it in a virtual currency network. As airdrop coin holders start using it to pay for their transactions, the popularity of the currency rises, which eventually raises its worth in the market.
As a marketing tool– Companies launching a new product on the internet may partner with a virtual currency distributor to facilitate their airdrop. They may ask their potential clients to subscribe to their newly introduced service in order to receive free tokens for a particular currency. Moreover, companies may also distribute free tokens to their existing clients in exchange for product or service referrals.
As a reward for early investors — Cryptocurrency providers may reward their existing customers who have been using their tokens for a long time. Using their database, companies can identify who has been with them from the first ICO. What better way to reward their oldest customers than giving them more tokens of the currency they still love to use for online transactions.
