Tag Archives: airdrop

What are Airdrops in Crypto World?

What are “Airdrops” in Crypto World?

Have you ever come across the term cryptocurrency airdrop

and wondered what it meant? Well, it’s nothing like the image you probably have in your head of an airplane dropping coins from the sky. In times of war, natural disaster, or other forms of crisis where the lives of people have been affected in places that are difficult to access by land, airdrops are carried out to provide essential supplies to people trapped in those zones. In the world of cryptocurrencies, airdrops have a different meaning. The cryptocurrency world has its own unique vocabulary which is expanding as the market evolves over time. In this article, cryptocurrency airdrops will be explained in detail.

Airdrop Definition

Airdrops can be defined as the process whereby 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.

Process Mechanism

There are basically two major types of airdrops; the ones that come as a surprise and the ones that are announced beforehand. For already established blockchain-based enterprises, they may choose to go the route of the former rather than the latter. Getting to know about it might depend on how involved one is in the crypto community. These are the types of airdrops that occur and have people commenting on online forums that their wallets have been credited with coins and no one is the wiser as to where the coins came from.

For blockchain-based startups, they mostly favor the route that involves pre-airdrop announcements to get the buzz going. Since the aim is mostly to bootstrap the project, the airdrop process usually involves the completion of a number of tasks by the user in order to qualify for the airdrop. When the date of the airdrop arrives, the enterprise will release the free tokens to the users who qualify.

Reasons for Carrying Out an Airdrop

From creating hype and buzz around a new blockchain-based enterprise to rewarding loyal customers, there are a number of reasons why a cryptocurrency airdrop is carried out. The following are some of the reasons for carrying out a cryptocurrency airdrop.

As a Reward for Loyal Customers

From time to time, blockchain-based services like cryptocurrency exchange and trading platforms, wallet service providers etc. wish to give back to their customers and subscribers. Airdrops can be used as a means of rewarding loyal customers with free cryptocurrency tokens. This serves as an incentive that can assure continued patronage on such platforms. This type of airdrop mirrors the voucher and discount giveaways of non-blockchain companies in the mainstream commercial world.

In 2017, the cryptocurrency exchange platform, Binance, carried out an airdrop of 500 TRX cryptocurrency to account holders on the platform. The airdrop lasted from the end of October 2017 to the middle of November 2017. In order to qualify for the airdrop an account holder needed to have at least 0.003 BTC in addition to having completed at least one transaction on the account. Binance account holders who had the equivalent of 0.003 BTC in other cryptocurrencies were also eligible for the airdrop as long as they fulfilled the transaction requirement.

To Generate Lead Database

Marketing is all about leads. Organizations tend to pay a lot of attention to generating appropriate leads that will drive their marketing campaigns and increase patronage. Airdrops can be used by blockchain-based enterprises to generate valuable lead databases for their organizations. In exchange for free cryptocurrency tokens, users will be asked to complete online forms that contain valuable user information which can be used to develop targeted marketing strategies. This application of airdrops to generating lead databases can even be utilized by none-blockchain enterprises.

To Create Awareness About a New Cryptocurrency

With the sheer size of the cryptocurrency market, a new cryptocurrency can go completely unnoticed if it isn’t given the right boost in terms of substantial marketing campaigns. Just like every other aspect of the digital world, hype and buzz play an important role in the cryptocurrency ecosystem. With many cryptocurrency enthusiasts looking for new cryptocurrency options, an airdrop is a great way to get people interested in a cryptocurrency.

The marketing campaigns on social media for an airdrop can lead to increased attention being paid to a new cryptocurrency. Word of mouth advertising and other forms of organic engagements brought about by an impending cryptocurrency airdrop can lead to increased user participation in the cryptocurrency. This can help to bootstrap a new cryptocurrency as seen in the case of Bitcoin Cash. After the Bitcoin fork that led to the creation of the Bitcoin Cash, the developers of Bitcoin Cash carried out an airdrop rewarding all of its users. For every bitcoin held by a Bitcoin Cash participant, the developers gave a corresponding amount of Bitcoin Cash. The end result was that in less than one month, Bitcoin Cash was among one of the top 10 cryptocurrencies in the market.

How to Get Involved in Airdrops

Getting involved in airdrops requires access to information and the ownership of a cryptocurrency wallet to receive the free coins. The first step is to sign up for online services that provide timely information about cryptocurrency airdrops. These include websites, Twitter accounts, Telegram groups, as well as online cryptocurrency airdrop forums. Some examples of such online services include Airdropaddict and Icodrops. These services provide vital information that will help users stay informed about upcoming cryptocurrency airdrops. They also provide information on the qualifying criteria for participating in the airdrops.FundYourselfNow also has an ongoing Airdrop Program.

Getting a cryptocurrency wallet is an essential part of being in the cryptocurrency market and that applies for airdrops as well. It is a good idea to get an ERC20 compatible multicurrency wallet since the majority of the cryptocurrency tokens in the market are ERC20 tokens. When participating in airdrops, it is important to be security conscious so as to not fall a victim of fraudulent airdrop campaigns. Some airdrops are designed to hack wallets and steal private keys. Always confirm the authenticity of a cryptocurrency airdrop campaign before participating in it.

Article Produced By
The Mission

https://medium.com/the-mission/what-are-airdrops-in-crypto-world-a345725c75e0

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What is airdrop coin? Don’t miss a single coin airdrop

What is airdrop coin? Don’t miss a single coin airdrop!

What is a crypto airdrop? What is airdrop coin?

First of all, let’s focus on the airdrop cryptocurrency meaning. What does airdrop mean? Maybe you’re a newbie in the crypto world. And it’s better to know what you’re dealing with… So, a crypto airdrop, coin airdrop or cryptocurrency airdrop, is a limited time event created by coin projects to promote their crypto-currencies. How? By distributing tokens or coins to early adopters, for free. In other terms, projects airdrop coin. While there aren’t many requirements to get free airdrop coins 2018, you may have to work a little (create a post, like a page etc.). Or even to share some personal information (share your Facebook profile or give access to your contact list).

Also you may need to be active in the crypto-community. Indeed, some crypto-airdrops are restricted and noobs can’t get in… In addition, you may require some coins from a specified blockchain in your wallet. Most likely bitcoin or ethereum, because they’re the most popular out there. But a free coin airdrop can be done on any blockchain. And this brings me to the best part: You can receive free coins anytime, without even knowing about it! Indeed, some platforms give away tokens to people holding some of their coins, just like that. Therefore, I’d recommend you to hold a little bit of the most popular coins in your portfolio. And enjoy as many freebies as possible! Also, don’t worry too much about the requirements now. Because I’m not only offering an airdrop tracker, with a list of airdrops. But I’ll also explain how to get free tokens for all upcoming airdrops!

Why do people give away free coins via airdrop cryptocurrency?

Now you know what is airdrop coin. But why would projects give away free cryptocurrency? A coinairdrop is a win-win situation: On one hand, you get free tokens which could worth something in the future. And on the other hand, blockchain projects raise awareness for their crypto-projects. Because it’s free advertising for them, giving away tokens that are worth next to nothing. And that way, they’re able to create a community around their coin. Indeed, if you give someone a coin, he or she’ll likely get involved, to get some money out of it.

Also, giving away some tokens cause the new currency to appreciate. Because if you have a token, you’re inclined to give it more value than if you hadn’t heard of it. Furthermore, it’s a mean to create a customer database for a cheap price. And I don’t need to remind you the saying: If you’re not paying for it, you’re the product! Because these projects collect all the data they can in exchange of a few worthless tokens…

Finally, it seems there’s a new trend of digital currencies which don’t require mining coins. And this is an interesting concept, when we see how much energy and computer power is needed to mine bitcoins. So users don’t mine coins, they generate them during a Token Generation Event (TGE). And sometimes projects distribute all their tokens during a crypto airdrop campaign!

Coin airdrop: How does an airdrop cryptocurrency work?

Coin-airdrops are a brand new method to distribute free tokens in the cryptocurrency community. As a result, there isn’t any standard set of rules yet. And each blockchain team can request whatever they want from their backers. But always beware of scammers! Legit coin airdrops will never require you to share your private keys. And if you find one that does, please report it to the community. Because unscrupulous people are definitely behind it. While I’ll give you as much details as possible for each coin airdrop, you may have to get in touch with the developer directly.

If you need specific coins during a cryptocurrency airdrop, the dev team will make a photo of the corresponding blockchain. And only the people holding the crypto-currency in their wallet at that time will be able to get the free tokens. While you may get the tokens automatically, you may also be requested to claim airdrop tokens on the project’s website. If the free coin airdrop is linked to a social media network, you’ll have to share or retweet a post with a link of the project. And you may need a certain amount of followers to be eligible… Also, some teams request an access to your contact details and list of friends!

I received airdropped coins: What next?

You’re all excited because you got some free coins. But what now? Are you a millionaire yet? Not really… And after a coin airdrop, there’s nothing much to do. Because nobody has heard of the new crypto-currency… And it’s not even available in any exchange, yet. While you can exchange coins with other early adopters, your solutions are too limited. And despite the value the project announces, it’s really worth nothing.

But don’t despair yet. Because it becomes interesting when the new crypto arrives in the exchanges. And that’s when you know the real price of what you received. However, most backers usually want to sell their coins, to get “real” money. So the price may not be up to your expectations… Anyway, you don’t have to sell your free crypto coins, you can hold them for a later use.

How to keep your new free coins safe?

First of all, you need a wallet, to be able to receive, hold and send the newly minted crypto. While you can find many web-based wallets, a.k.a. hot wallets, I recommend you to use a hardware wallet. Trezor is the original and most secure cold wallet. And it’s compatible with most airdrop free tokens! And you must keep secret your private keys to your coins & tokens. Otherwise they’re not yours. Period. While you can share your crypto address, you must never share your private key! If you do, you can say goodbye to your coins. Finally, remember that this is your best airdrop alert website! So don’t forget to register to my newsletter, or to subscribe to my Telegram channel, my Facebook page or my Twitter account. And you won’t miss a single airdrop crypto!

Article Produced By
CoinAirdrops.com

https://coinairdrops.com/

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WTF is an Airdrop? A Detailed Guide to Free Cryptocurrency

WTF is an Airdrop? A Detailed Guide to Free Cryptocurrency

Money can’t appear out of no where… But cryptocurrency can.

Polymath did an airdrop (free coins) worth $300

In December 2017, I signed up to learn more about a coin called Polymath. As I learned more about it, my interest peaked and I wanted to learn how to get my hands on some of the coins. Turns out, the coins weren’t available yet; in fact, the team wasn’t even doing an ICO. Instead, they were conducting an airdrop. I signed up for it, and didn’t have to pay a penny (only enter some identifying information to comply with KYC regulation). A month later, 250 POLY showed up in my Ethereum Wallet. As of the time of writing, that’s worth around $300.

What is an Airdrop?

The simple answer: it’s literally just free coins just waiting for you. The method behind the madness, though, is a decision regarding marketing strategy. As a way to spread awareness to the relevant audience of potential investors and eventual enthusiasts, coin teams will, from time-to-time, do airdrops.

A Brief History of Airdrops

Coins have been doing this for a while — pretty much since the first Ethereum ICO. If you check your wallet on Etherscan (which I totally recommend doing — never open your wallet with a private key just to check your balance, it’s riskier than necessary), you’ll know there’s a row up top named Token Tracker. If you see it, then there are also tokens in your account; if you don’t, then you don’t have any tokens or airdrops — yet.

Some of you ETH wallet holders that have had wallets with balances for a while now might’ve noticed this — one day you just see an extra random token in your Token Tracker. No, someone didn’t randomly deposit some obscure token into your wallet address on accident; instead, the coin’s team decided to send a small amount to a population of Ethereum wallets in order to spread the word.

After getting the token, one of the first things you might’ve done is Google what the coin is. Or you might’ve taken it a step further — asked someone else if they knew what the token was. Also, you could just choose to ignore it. Of course, in the last scenario, the airdrop failed its intention. But scenario 1 means that you have now learned about the coin, and scenario 2 is even better — you’ve just told your friends about the coin, too. In both of those scenarios, the airdrop did its job for a small price (well, potentially a larger price if it moons).

Eventually, airdrops became a method beyond marketing. As a method to pump coin value, coins would announce airdrops where coin holders would receive bonus coins proportional to the amount of total coins they hold. Coin investors that wanted to get the airdrop would have to buy the coins if they didn’t have any yet, or buy more if they wanted a larger proportion of the airdrop. That being said, I want to emphasize that this airdrop strategy won’t be examined further in this article, since my article is focused on how you can get coins for free, not on how you can get coins by buying coins.

Recently, with Facebook’s new advertising policy explicitly stating bans for ICOs, many ICOs have turned to airdrops as an alternative method for pay-per-click advertising. With many ICOs being consumer-focused products, they focus on one metric: viral growth through the network effect. In layman’s terms, they want to spread the word to you and hope that you spread the word to your minions, too. They address this by using a strong referral system method.

Participating in Free Airdrops

The Tools You’ll Most Likely Need

Here’s what you need to catch airdrops like a stud

  1. An Ethereum Wallet:
    not one that is on an exchange. It has to be a personal address that is ERC20 compatible because most of the tokens that are airdropped are ERC20 tokens, which are or were originally Ethereum-based ICOs. I suggest using MetaMask or MyEtherWallet to get started immediately, but in the long-term I always recommend getting a hardware wallet like the Ledger Nano S.
  2. The Ethereum Wallet Must be ACTIVE.
    By active, I mean that you have to show at least some human use of it. Lots of airdrops have checks in place to make sure that you aren’t just randomly generating a bunch of addresses and signing them all up to unfairly obtain more coins. This means that if your wallet doesn’t show activity, it might not receive the airdrop. Sometimes, coins will be explicit in what they look for, including some type of balance in the account.
  3. A Telegram Account (https://telegram.org/):
    I’m sure there are amazing reasons why Telegram is the chatting tool of choice for many of these ICOs. The coins want to boost the audience count. Usually, these airdrop coins will also require you to sign up for their Telegram accounts. Until you receive the coin in your Ethereum wallet, do not leave the Telegram accounts or you risk disqualification for the airdrop.
  4. A Twitter Account (https://twitter.com/):
    Similar to the reasons behind the Telegram account, many of the airdrop coins will also require you to follow them on Twitter. Some of them will even ask you to retweet some tweet.
  5. An email address.
    sometimes airdrops will ask for your email, too. If you don’t feel comfortable with giving them your real email, just create a spam one. Remember the password, though; some of them actually ask you to confirm your email.

Obtaining and Withdrawing Tokens

Usually, it takes about 1–2 months after the end of the airdrop before you receive your tokens. This is primarily due to the fact that many airdrops occur before or during token sales, in conjunction to spread awareness. And tokens are not distributable until the end of a token sale anyway (I’ll write a separate piece on Token Sales, or ICOs). To check your wallet info and see if the token has appeared in your wallet yet, just go to Etherscan (https://www.etherscan.io). Type in your ETH address into the search box.

Circled in Red is the area you want to look. If the token is available in your wallet already, it will show up in the token tracker dropdown. If you don’t have a token tracker appear on your result, then you don’t have any tokens in your wallet yet, and it also means you didn’t receive it. Once you actually obtain the tokens, you can withdraw them directly through a services like My Ether Wallet (MEW). All you have to do is access your wallet (through MetaMask, Ledger Nano, or some other way — direct private key pasting is not recommended) and select the token you want to withdraw.

Don’t Get Scammed

With all the promises of free coins out there, it’s easy to lose track of everything and just start a clicking frenzy. Here are some tips to avoid getting scammed:

  1. Never send any private keys.
    No one needs to have your private key in order to be able to check you wallet balance. They can do so very easily with tools like Etherscan.
  2. Don’t send any money to any addresses.
    Remember this — airdrops are free. Whether it requires you to be holding a certain coin, or if it’ll just appear in your wallet, an airdrop will never ask you to send any amount of some coin to some type of address. If they ask for this, steer away immediately.
  3. Check official sources.
    If a coin is actually doing an airdrop, it is likely they’ll have announced it on their official social media accounts, such as Twitter. Check there to make sure that the airdrop is official; otherwise, you might be subject to a scam with scammers trying to collect your data.

This is an example of a scam airdrop. The first red flag is the fact that the Twitter account is asking you for an amount. But these scammers have become pretty sophisticated. If you check the comments, you’ll see there are 8 responses to this. 7 of them are from fake Twitter accounts pretending to have participated and being “super stoked” about receiving their coins. The other one is from me, tweeting that it’s a scam to try to warn people.

If you look at the Twitter account, you might see that it has 3,000 followers (or maybe even more) but the tweet history is less than 24 hours long. Does that make sense? A coin that just supposedly raised 8m euros has only tweeted for 24 hours? If the story seems fishy, there is a disgusting, rotting corpse somewhere. Don’t believe it.

The image is a terrible Photoshop job with font that doesn’t match the rest of the announcement. This scam is a metropolis of red flags. A simple Reverse Google Image Search shows that the logo actually belongs to Thrive. As a best practice, always look for reasons why an Airdrop would be a scam. With that mindset, you are more likely to be able to sniff out the rotting fish from the sushi.

Resources to Help You Find Airdrops

There are many communities and newsletters available to help you with identifying airdrops as they come along. I definitely recommend signing up for them (they’re free), rather than trying to look for them yourself. That’s because there are many scammers out there, and they make themselves very present and legitimate-seeming. These resources that you subscribe to have (hopefully) already screened the airdrops.

Let Cosmic Trading help you find those awesome Airdrops. If you’re looking for one to join right now, take a look at Cosmic Trading. Members post airdrops in that channel that they’ve already verified are legitimate. Furthermore, the community is just a huge group of cryptocurrency traders and enthusiasts with experience levels ranging from years of trading and HODLing to people who just started yesterday.

Article Produced By

Kenny Li

Blockchain and Fintech Enthusiast. Entrepreneur. MIT Sloan Class of 2020.

https://hackernoon.com/wtf-is-an-airdrop-a-detailed-guide-to-free-cryptocurrency-e70e8777dd83

TP

ICO Airdrop Details

ICO Airdrop Details

What’s an ICO airdrop?

An ICO airdrop will happen when a blockchain-enabled project distributes its free tokens to the entire crypto community. In order to be eligible to receive airdropped tokens, you need to own some coins that are based on the same blockchain on which the project is built. A few examples of airdropped tokens that have had successful ICOs such as Cell Blocks, Bunnytoken, Data Broker Dao and later become popular cryptocurrencies include OmiseGo, Stellar Lumens, and Byteball. You can also check out an ICO beginners guide to get more information on how the tokenized economy works. It is helpful for the investor to know about the best ICOs to invest.

Some airdropped tokens are conveyed to the targeted audience through social media posts, or the receiver can even get in touch with a team member on the bitcointalk.org forum. Put simply, the blockchain-based project giving away the free tokens uses airdropping as a marketing move.

The format of such giveaways is something like this:

  • During the pre-announcement phase, the project backing the event will click a “snapshot” of the blockchain.
  • If, at the time of taking the snapshot, someone is holding Bitcoin or Ether, they’ll receive a specified number of free tokens.

Airdropping can be done on any blockchain, but Bitcoin and Ethereum blockchains are the most used, owing to their popularity.

How to apply for airdrops ?

Every airdrop will have different rules. If you’re organizing an airdrop, create your very own Bitcointalk forum account. Through this account, the visitors will first apply for the airdrop. While applying for an airdrop, the visitor will need to contact the forum’s modulator via personal messages. A classic example of this format is the Ethereum Dark airdrop. Any person who wanted to apply for the ETH airdrop needed to send a personal message in order to receive the tokens. However, a newbie operating on the forum will be refused the airdrops. If you are looking to receiving airdrops through a forum, then post occasionally on it to secure a high rank.

Sometimes, receiving an airdrop will even require you to retweet on Twitter; many times, you should have a specific number of followers on a social media channel to be the receiver of an airdrop. All in all, you have to maintain active social media accounts in order to be eligible to receive free tokens. Also, check your crypto wallets frequently to see whether you’ve received a surprise airdropped token. Some platforms, such as Komodo or Waves, have already delivered airdropped tokens to their holders without any prior announcements. If you’re an investor holding a diverse cryptocurrency portfolio, you’re likely to receive more airdropped tokens than others.

Why would a blockchain project deliver free tokens, anyway?

If you aren’t paying a single penny for the product, then that means you’re the product. By doing an airdrop, a project may successfully create undeniable awareness about its tokens or its ICO sale. By executing airdrops, the team behind an ICO project will attract people who may be interested in it or may not have heard about it. When an airdrop is successfully carried out, the token’s price can experience appreciation. (This phenomenon is called the endowment effect.) Airdrops, if done successfully, can create a big network/community of people who actually own the tokens.

If you list the token distribution through a pie graph right after an ICO sale has finished, a large part of that pie will still be owned by the project or its development team; another part of that pie will be owned by all those who’ve joined the pre-sale; plus, a reasonable part will be owned by those who’ve already invested in the ICO sale. With an airdrop, you actually add an extra slice to that pie—and that slice will definitely have a lot of people in it. (After all, everyone likes freebies.)

Plus, an airdrop can also plant a seed. There are thousands of cryptocurrencies, today; however, do you remember the name of any coin except the popular ones? Well, if you’ve received a free token during an airdrop, then you’ll remember its name when you see it as a coin on an exchange; that’s how the seed gets planted. In short, airdropping a token is similar to advertising the whole project. Similarly, Influencer marketing is a powerful route to market for your ICO, where well- known brand campaigns reach engaged audiences.

Airdropped tokens come in a wide variety

Today, ICO-launching businesses are building exclusive marketing campaigns. By carrying out well-planned marketing strategies, a business tries to spread the word about its upcoming ICO pre-sale and crowd sale. When it’s about ICO marketing, it’s definitely about airdropping. As one of the most powerful marketing strategies that ICOs are adopting today, airdropping is becoming known for improving an ICO project’s traction by a wide margin.

Today, investors are more interested in knowing about the process of receiving free tokens. Some of the airdropped ICOs want their prospective investors to retweet a pinned tweet or like a Facebook page. Likewise, airdropping can even include an investor getting paid for watching an ad or a pre-roll.

Here are the most common types of airdrops happening in the ICO space today:

Social media airdrops
According to this strategy, investors are given airdropped tokens for performing different tasks on social media channels.

Sign-up airdrops
This strategy lets businesses reward tokens to anyone who has signed up on a specific network.

Referral airdrops
According to this strategy, a business gives reward tokens to all its existing customers whose referrals successfully sign up on a network.

Hard-fork airdrops
These airdropped tokens are given to the token holders of the blockchain that is getting hard-forked.
In this airdropping strategy, the token holders generally receive a duplicated amount of freshly generated tokens.

Exclusive airdrops
In the crypto landscape, some websites may host exclusive airdrops.
Generally, these airdrops are far more rewarding than a traditional airdrop.

Is there a place to sell the airdropped tokens?

Now, once you own free tokens, what will you do with them? Many projects that distribute free tokens are still in their pre-ICO phase or have just winded up their ICO sale. Because of this, the tokens won’t be traded on bigger exchanges for the time being. However, once the token that you received during an airdrop increases in its value, you may sell it on any leading exchanges that list it.

There are a few crypto exchanges that buy and sell airdropped tokens. To trade the freebies on the exchange, you need to first create an account on the platform. Some previous ICO projects did many airdrops. (These projects include DECRED, Ripple, and NEM.) Plus, you needn’t immediately sell your free digital holdings because there’s nothing wrong with being a HODLer.  Also ICO Stats are informative and helpful for the investor in the way that they can get knowledge on how to invest in ICOs.

The must-have tools to get airdropped tokens

In order to secure free tokens, you’ll need some of the following tools.

  1. An Ethereum wallet:
    Most of the airdropped tokens comply with the ERC20 standard, so it’s best if you have a wallet that’s ERC20 compatible. For example, you can use either MyEtherWallet or MetaMask as your Ethereum Wallet.
  2. An active wallet:
    Having a wallet that’s never been used doesn’t work if you want to lay your hands on some free tokens. It turns out that you have to own an Ethereum wallet that’s been used. Some companies may even check whether you’re a spammer who’s created a bunch of Ethereum wallets just to get a sizeable number of free tokens. The company that’s doing the airdrop will check that by analyzing the activities done in the wallet.
  3. A Telegram account:
    The airdropping company wants to boost its token value and that’s exactly why it may ask you to sign up for its own Telegram account. The more users who join its Telegram account, the better visibility it gets on this chat client. Most importantly, you’re not supposed to leave the company’s Telegram account until you receive the airdropped tokens in your wallet.
  4. A Twitter account:
    Sometimes, you may receive an airdropped token just for retweeting a pinned tweet. That’s why it makes sense to follow the company that’s organizing the airdrop on Twitter or similar social channels and to do its bidding.
  5. Email address:
    Most of the time, an airdropping company will want you to supply your email address. If you aren’t comfortable giving your real email, just create a secondary one. However, do remember the password because you’ll have to access it in order to receive your free tokens. (Many airdropping companies may want you to confirm your email before they send you the reward tokens.)

How can I safely store the free tokens?

One way to securely store all your airdropped tokens is by putting them in a cold-storage wallet or a hardware one. Such wallets store all the tokens offline, and that’s what protects them from getting hacked. You can choose from a wide range of hardware wallets—our pick would be either Trezor or Ledger Wallet Nano S. However, every token cannot be stored inside a hardware wallet. If your tokens aren’t compatible to be stored inside a hardware wallet, you’ll have to put them in an online wallet. Your online wallet is controlled with a private key, which isn’t shared with anyone.

To avoid being victimized by a crypto scam that’s masking as an airdrop, we’ve listed some general rules.

  • Never share your private keys.
  • Your wallet should have a two-factor authenticator.
  • Always be careful while downloading the wallets of the smaller projects.
  • Never click on any link that’s redirecting to a wallet.
  • Don’t give your primary email address while applying for an airdrop.
  • Don’t ever reuse the same password for two websites.
  • Don’t ever send any payment to receive the free tokens.

Staying absolutely safe in the world of the airdropped token 

Often, you’ll see a currency organizer asking for your private key in order to send you some airdropped tokens. However, never ever share your private key with anyone. If the airdrop is legitimate, it won’t ever request you to supply such critical data to receive your free rewards—it’s as simple as that.

The ICO space, by and large, remains unregulated—that’s exactly why you shouldn’t allow any scammer to get the better of you anytime, anywhere. These scammers usually lie in ambush waiting for an airdrop to happen. As soon as there’s an airdrop, they may try to generate fake “phishing” sites and portals; these portals or sites are engineered to take away your crypto keys. So, you should hammer home this message—never give private keys to any company that’s airdropping free tokens.

Of course, just because an upcoming airdrop is legal, it doesn’t mean you’ll end up making a lot of money from it. Most of the airdrops in the crypto landscape are done whenever an ICO needs a power-packed launch. Plus, sometimes, airdrops may even happen whenever there’s a solid possibility that the token’s value won’t be high. However, in the end, you will never be sure about an ICO’s true value until you have read its project’s white paper and reviewed the website. It is necessary to be aware of marketing trends of ICOs before investing. ICO marketing guide is very helpful to get the clear idea for it, also ICO events organized by their respective companies provides a very good overview of market aspects.

It is always best to go through the project’s white paper or its website to check ICO services before making the final decision. You should even read about the project’s development team and analyze its social media pages. You need to see whether the team that’s organizing the airdrop is actually interacting with its community or answering their questions. If they’re interacting with their and answering every single question, then the development teams will probably be legitimate.

In addition, a good airdrop will be the one that will need some of your details as part of the KYC process; once you give the information, you’ll receive the free tokens. Finally, if an airdrop is actually completely legal, it may also have been mentioned on the crypto news outlets. So you need to bookmark some quality crypto news sources that are constantly being updated.

Earning respect from fellow crypto investors by alerting them to scams

We always strive to not list any scam ICO projects. Our team does thorough research before listing any ICO project (such as Gamblica, Guardium, TrustedHealth, Fintechbit) on the website. Nevertheless, it’s still possible for us to miss a scam project. So as a crypto investor, you should always look out for a scam. If and when you find one, you should notify us. That way, you help us keep the site clean and warn other crypto investors about fraudulent ICO projects.

Summing up airdropped tokens

Before taking part in any new airdrop out there, it’s essential that you research the project and believe in its vision from the beginning. You should even analyze the technology and the concept backing the project, and then only decide whether it makes sense to participate in the airdrop.

You should also keep track of all scams and always remember that a completely legit project will have no business in knowing your private details. All in all, airdrops will remain a super-exciting way to learn a bit more about the project and even its development team. Remember that airdrops won’t ever need your money, but it’ll definitely want your time and patience. Finding the right airdrop is often easier said than done. So, as an investor, you have to be smart enough to know everything about every project you’re involved in. Plus, it’s better to go the extra mile in order to keep your entire data safe. To get latest updates on ICOs you can check ICO list. Last but not least, we remind you to never give your private keys to anyone who claims to want to deliver free airdropped tokens to your wallet.

This Article Produced By
Airdrop Alert
https://www.icotokennews.com/airdrop/

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Free Crypto Airdrops Are a Real Thing Here’s Some Happening Now March 2018

Free Crypto Airdrops Are a Real Thing… Here’s Some Happening Now (March, 2018)

A company giving out free samples to entice new customers

is nothing new. But giving out free currency, or shares of their company? That sounds a bit suspicious… Turns out, in the Cyrpto world, it’s nothing new. From Dogecoin to Bitcoin, many developers relied on on free “faucets” to entice their first users (the original BTC faucet gave away 5 BTC just for filling out a captcha…)

More recently, companies have begun “airdropping” as a means of promoting their business and encouraging trading of their coin. This just means they’ll send free coins to a wallet address you provide, typically in exchange for a small favor on your end, like retweeting a post. I’ve rounded up 5 of the most promising airdrops for January and February; each offering between $1-10 USD just for clicking some buttons. Before we hop in, however, here’s what you’ll need to claim your tokens:

Airdrop Checklist

To avoid giving out too much private information, I recommend setting up special accounts for airdropping. Each company has different requirements, but here’s what you’ll need to get all 5 offers:

  1. Email Account
  2. Ethereum Wallet Address: To deposit your tokens. Create one instantly at MyEtherWallet.
  3. Twitter Account: Consider setting one up specially for this purpose
  4. Telegram Account: Telegram is a mobile chat app many companies use to communicate with users. You’ll need to install the Telegram app on your smartphone.
  5. Phone Number: Set one up free on Google Voice if you want to avoid giving out private information. Only 1 airdrop required a phone number (HedgeConnect), but they didn’t verify it anyway.

Now without further adieu, here’s the current airdrop offers for March, 2018:

Lino (LNO)

Estimated Value: $1–10
Lasts Until: Unspecified, Spring 2018
To get 15 LNO tokens, simply follow the link, follow LINO’s Twitter page and retweet a message. You’ll also be given a referral link you can share to earn 5 additional tokens for every new user.

Sphere (SAT)

Estimated Value: $2.50
Lasts Until: Unspecified, Spring 2018
Sphere is aiming to create a decentralized social network. They’re offering 50 SAT tokens free when you sign up. Just follow the link, create an account and confirm your email address. Tokens are currently selling for $0.05 each, making this airdrop worth $2.50 before the official launch.

Shivom (OmiX)

Estimated Value: $9
Lasts Until: End of March
Shivom is running a very limited airdrop, supposedly valued up to $9 USD, according to Airdrop Alert. Simply follow the link, join the telegram and retweet 2 messages from Shivom. The tokens are due to distribute in June after the ICO sale.

House Panda (HPT)

Estimated Value: $1–5
Lasts Until: Extended to May 2018
To sign up for this airdrop, you’ll need to be on your mobile phone. Follow the link to join their telegram channel (download the telegram app if you don’t have it already) and type “/claim” into the message window. You’ll get an immediate response that includes a link to redeem your token, and a referral link you can use to earn extra. To redeem your tokens you’ll actually be given a 12-digit code. Because HPT has not actually launched yet, you’ll this code to claim your tokens in February, after their initial coin offering. Write it down or copy/paste to save it in a safe place!

RobinHood

Estimated Value: $3–150 (no joke)
Lasts Until: Indefinitely
Okay, so this isn’t exactly cryptocurrencies, but the stock-trading app RobinHood is giving away 1 free stock when you sign up for their platform. You don’t need to deposit any money, or even provide a credit card/bank account number. Simply create an account, and claim your free stock. Most free stocks are worth around $5, but Robinhood is transparent that 1 in 100 will receive an Apple, Facebook or Microsoft stock, which are valued around $100–160 USD. Cryptocurrencies are also coming to the platform soon, and may be a part of this promotion in the future.

Unlike the other airdrops, Robinhood will require your full information, including home address and Social Security Number. Don’t be alarmed; they are a completely legitimate brokerage company simply complying with federal regulations. Robinhood will track your investments and send a 1099 at the end of the year (similar to Vanguard, Fidelity, or any traditional investment platform). But personally, I’m looking forward to using a trading platform that will make tax time simple, compared to the clusterf**k that crypto-taxes are turning out to be.

Some of these airdrop promotions provide me with extra tokens/stocks for referring other participants. I do not work for or represent any of these companies; referral fees are simply a way to earn a small income from my writing and help support my blog. Thanks for reading, and be sure to check back for next month’s airdrops!

Fela Oparei

Fela Oparei

Business writer by day; coin trader by night. This blog is for my semi-professional thoughts & insights on cryptocurrency investing in 2018.

https://medium.com/@cryptofela/free-crypto-airdrops-are-a-real-thing-heres-some-happening-now-9d50df6a5c82

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Airdrops: Key Themes and Design Considerations

Airdrops: Key Themes and Design Considerations

A Tool for Network Adoption and Governance

If you’ve ever opened your crypto wallet and found tokens

that you didn’t knowingly purchase or accept, you’ve probably been the recipient of an airdrop — an event where free tokens or crypto assets are distributed to a group of prospective users. Why would the leaders of a project choose to distribute tokens for free? The thinking is generally that it is a tool for seeding network adoption — by giving people tokens for your protocol, it’s more likely that they will both learn about your protocol and participate in the network. Another reason is to achieve greater initial decentralization of token holders by making sure they don’t just start in the hands of the project team and folks who participated in a token sale.

While airdrops may seem on the surface to be a simple marketing tactic to bost awareness of a new cryptocurrency, they’re actually a complex tool with the potential to fuel more than just brand recognition. Looking ahead, we’ll likely see airdrops go through multiple evolutions as users play around with different elements and uses for them. There is a vast design space around airdrops, hard forks, and other methods of token distribution, which have only just begun to be explored.

To try to get our heads around this topic, in December, IDEO CoLab and CoinList hosted 12 practitioners in the crypto asset field — including founders, engineers, designers, and investors — to discuss airdrops. What follows is a synthesis of some of the themes and design provocations surfaced in the discussion.

Key Themes

1. Airdrops as a way to bootstrap new networks and communities

Airdrops can enable easier and faster bootstrapping of new protocols and communities. Airdrops to large communities of existing token holders (e.g., ETH) can provide wide distribution and a new model for marketing to and acquiring users. Airdrops may also help narrow the gap between the distribution and usage of tokens, as compared to a token sale.

Questions:

  • How do you airdrop “fairly” and equitably, especially when it is easy to game if you know how the distribution will be done in advance?
  • How do you know who to airdrop to, and how much to airdrop to them?
  • How do you airdrop to future users of the platform, not just investors or speculators?

2. Potential to sidestep regulation

There is an assumption that giving away tokens BEFORE a market price has been established for them may enable a project to avoid many regulatory requirements of token sales. It is unclear whether this is actually the case, given precedents set by the SEC related to stock “giveaways” (see 1999 Wilmer Hale analysis), yet it is a frequently cited reason for pursuing airdrops as a distribution mechanism. [Update: some teams like Harbor and TokenSoft are rolling out products that explicitly take the stance that some or all airdrops will not be exempt from regulatory requirements.]

 

Questions:

  • How should issuers legally and financially account for airdrops? As a marketing expense? As a donation? Something else?
  • How might regulatory agencies (e.g., SEC, OFAC) view and respond to airdrops, especially as they increase in frequency.

3. Airdrops as a marketing interface and onboarding experience

For many airdrop recipients, receiving tokens may be their first exposure to that project. Currently, airdrops are done without any direct way for users to learn more about the project other than searching Google or Etherscan for the token’s name. This is a poor onboarding experience and one which has much room for improvement in terms of design.

Questions:

  • How do you communicate with the recipients of airdrops? Could airdrop transactions include an onboarding message and link to learn more in the Input Data field?
  • How should an airdrop’s onboarding experience be designed to reduce friction and optimize adoption and usage?
  • How might airdrops reimagine marketing and advertising?

4. Improve effectiveness of airdrops via better targeting

Airdrops to date have targeted all holders of an existing cryptocurrency (either BTC or ETH), but it may be more effective to target a subset of addresses based on their possession or use of other tokens. For example, when launching a token for machine learning experts, it might be more effective to target NMR holders, or more specifically those who have actively staked tokens in a Numerai competition. While the ethics are murky, targeting addresses that frequently interact with various gambling platforms may be a good way to seed adoption for a project like FunFair.

Questions:

  • How do you ascertain the ‘identities’ or ‘profiles’ of address holders to make better decisions on which users to airdrop tokens to?
  • What analyses can be performed to make better inferences for the purposes of targeting?

5. Incentives post-airdrop to use utility (or attach airdrop to usage)

Instead of giving out tokens and hoping recipients will engage, there could also be an incentive to use the tokens to earn the allocation (and/or a larger one). There was a lot of interest in this idea, which essentially amounts to an initial airdrop targeting a broad population with small amounts of a token, followed by a targeted airdrop with more tokens to those who actively engage with the platform after the initial airdrop. One framing of this is to think of the initial tokens as coupons, which could be “redeemed” for more value after a desired action is taken.

Questions:

  • How do you create airdrops incentives and/or contingencies based on user actions?
  • What is the range of post-airdrop incentive models that will exist?

6. Unintended consequences (e.g., tax liability) of airdrops

Airdropping tokens may create unwanted tax and legal liabilities for recipients (and issuers). There may be more unintended consequences, as airdrops are delivered to large exchanges, custodians, and margin traders. Modeling for how different actors in the network will respond as airdrops become more prevalent will be important to an airdrop’s design and its ability to deliver on its intent.

Questions:

  • What is the cost basis and tax liability of an airdrop to its recipient? What if that recipient is an exchange, custodian, or margin trader?
  • Will people value or feel differently about tokens that they get for free?

7. New airdrop models

As airdropping becomes more common, new models will emerge for different strategies. For example, Stellar has done multiple airdrops to bitcoin holders which required proactive proof of ownership, while OmiseGo did a passive airdrop to Ethereum addresses over a minimum threshold.

Experimental models surfaced:

  • Hard spoons: Copying the balance/UTXO set from an existing blockchain network and using it as the basis for token distribution for a new protocol. Basically, you’re copying the economic distribution of tokens on one network and using that as the starting point for a completely separate protocol that is quite distinct from a technical standpoint.
  • Continuous distribution models with “central bank” and monetary policy: Models where tokens are not entirely sold/allocated up front, but rather made available over time through an issuance scheme that is laid out in advance but not necessarily governed through a process like proof of work or proof of stake.
  • Contingent airdrops: In which receiving tokens is dependent upon the user taking a desired action. See #5 above.

8. Airdrops for inter-protocol governance

Airdrops could be an effective tool for dealing with governance decisions that affect holders of multiple tokens. The simplest version is doing a protocol merger/acquisition, whereby holders of tokens for one protocol are granted tokens on another protocol as a way of combining the communities. This can be done via agreement of project leads and respective stakeholders of each project, but could also be done in a fashion akin to a hostile takeover, where incentives are given by one project for the holders of another project’s tokens to burn their tokens or sabotage the target protocol.

See Andy Bromberg’s “What The First Token Hostile Takeover Could Look Like” for more details. Also discussed was the possibility of building “poison pill” terms into smart contracts to proactively counter such attacks.

Questions:

  • How might airdrops lead to greater collaboration? Competition?
  • For what other corporate strategy and/or finance actions could airdrops be used?

Closing

While the initial conversation took place under Chatham House Rule, the following people consented to being recognized in this piece for their participation in the conversation: Andy Bromberg, Arianna Simpson, Dan Elitzer, Gavin McDermott, Ian Lee, Jay Freeman, Joe Gerber, Joey Krug, Joseph Poon, Richard Craib, and Tara Tan. No assumption should be made about any individual’s agreement or disagreement with any of the observations above.

Finally, given the pace at which everything in this industry moves, obviously there have been further developments since the initial conversation in December. One is airdrops targeting folks who may not already be crypto users, such as the experiments Numerai is doing to target data scientists on Kaggle and university students; Earn.com rolled out a product allowing airdrops to be offered to over 100,000 users; and Merkle airdrops are an interesting proposal to enable a simple claim process while reducing blockchain bloat.

While it’s clear that airdrops are a powerful tool for network adoption and governance, we’ve only just begun to scratch the surface with how they can be most effectively deployed. Let’s keep experimenting!

Article Produced By
Dan Elitzer

https://medium.com/ideo-colab/airdrops-key-themes-and-design-considerations-efadc8d5d471

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What’s a Cryptocurrency Airdrop? A Beginner’s Guide

What’s a Cryptocurrency Airdrop?
A Beginner’s Guide

What’s an Airdrop?

Have you ever noticed an unexpected increase in your cryptocurrency wallet and didn’t know where the free coins came from? That, my friend, is most likely the result of an airdrop. Hoorah for free money! Airdrops can be delivered in a variety of ways, including forks (e.g. Bitcoin Cash, Bitcoin Diamond), ICO purchases (e.g.Raiden Network), and freebies (e.g. Binance gifting customers with 500 free TRX). Sometimes an airdrop will occur if a team behind the blockchain project decides to give away “free” tokens to the cryptocurrency community.

One of the most well-known examples of an airdrop is when a hard fork of Bitcoin, Bitcoin Cash, gave current Bitcoin holders an equivalent amount of Bitcoin Cash. At the time of the airdrop, if you were holding 0.4 Bitcoin, you were one of the many lucky receivers of 0.4 Bitcoin Cash. With Bitcoin Cash currently valued at $2,469.36 USD, that sounds like a pretty sweet deal!

Why do Airdrops Occur?

However, a big question still remains. Why does this happen, and why would a team decide to give away valuable tokens? Think about it this way. When you’re walking down the aisle of your favorite grocery store and employees are offering you samples of food to try, you may take a quick peek to analyze what the food is to decide if you want to try it. You take a bite, and it sure is delicious. The employee offering you the free sample then says “if you like it, you can find it in aisle 5 on the left-hand side”. From that single nibble, you may just go and buy the product.

In marketing, awareness is often one of the initial steps in a buyer’s journey. As with the grocery store example, psychology plays a crucial role in the aspects of an airdrop, as a buyer is much more likely to purchase a product they are familiar with than a product they know nothing about. Therefore, those in charge of distributing the tokens see an airdrop as a key opportunity to give you a taste of their tokens. Compared to alternate forms of costly advertising (such as Facebook Ads), airdrops are often a more effective approach to showcasing coins.

How Can I Inform Myself About an Upcoming Airdrop?

Many sites and online groups are dedicated to informing users of upcoming, past, and active airdrops. Icodrops and Airdropalert, for example, show a list of upcoming airdrops. They also advise you on how many days are left before they take place and what currency you need to hold at the time of each one to receive the coins. Another way to inform yourself of an airdrop is to simply keep up to date with the various social media accounts of each project.

That being said, often times, airdrops are surprises (unless you work with the project’s team). In other circumstances, an airdrop will be announced ahead of time and will have a different set of rules for receiving the tokens. The rules designated to an airdrop are decided on by the project’s team. This explains the differences in airdrop strategies. As of now, there are no standard implementation rules on how airdrops need to be designed. We may see official regulation on how they can occur if the government steps in.

A token airdrop currently underway is one from the ShipChain project. Their strategy is a bit more complicated than just holding a certain currency in your wallet and receiving free tokens. According to their website, “eligible” airdrop receivers will get the tokens in their respective wallets around March, as long as they follow these guidelines:

  1. Be an “active member of our Telegram group. An ‘active member’ means anyone that is a member of our Telegram community before the airdrop signup process is complete, which is two weeks from the Jan 15th start date.”
  2. “Pass KYC/AML (Know Your Customer/Anti-Money Laundering). This is a simple form we will have you fill out, it will be emailed to you within 1-3 weeks of completing this registration.”
  3. “Have a valid ERC20 non-exchange wallet.”

What Wallets Do I Need?

Usually, airdrops occur on the Ethereum or Bitcoin blockchain and all you need is an account on an exchange. However, those in charge of the airdrop will sometimes state a specific wallet that’s needed such as an “ERC20 non-exchange wallet”. If you’re new to cryptocurrency, you may not know what this exactly means and that’s ok, we’re here to help.

What ShipChain means by a non-exchange wallet is simply a wallet that isn’t located on exchange sites such Binance or Coinbase. Reputable non-exchange wallets include Exodus and Jaxx. For a detailed list of wallets, feel free to visit our Bitcoin Wallet guide. The article also includes ways to safely store your tokens and the advantages/disadvantages of using different types of wallets.

An ERC-20 wallet simply means any wallet that supports the Ethereum blockchain system. Some tokens follow Bitcoin protocol, some follow Ethereum, etc. Therefore, it’s important to have a wallet that allows you to store ERC-20 tokens if that’s what the airdrop guidelines call for. MyEtherWallet (MEW) is a popular ERC-20 wallet.

Final Recommendations

Most importantly, make sure you are visiting the official site of the project when researching airdrops. A good way to filter out scam sites is to visit the official social media pages and find a post which links you back to their website.  As stated before, the cryptocurrency market is currently unregulated and the potential for fraud and coin theft is high. Reputable blockchain projects will not ask you for private wallet information beyond your wallet’s public address. Never give out your private keys to ICOs who claim to “need it” for your airdrop to be delivered. Identity theft and hacking attempts are prevalent in the cryptocurrency community, and you do not want to be a victim when proper measures can be taken.

Presented By
Erin Gorsline

 
Erin is a Brooklyn based cryptocurrency enthusiast & freelance writer. Nomad at heart, you can often find her at the airport heading to her next adventure.

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Compliant Airdrops Are Here: CoinList to Offer Investors Free Crypto Giveaways

Compliant Airdrops Are Here: CoinList to Offer Investors Free Crypto Giveaways

Who'd have thought giving something away could be so complicated?

That's the question crypto innovators have had to come to terms with since the concept of "airdrops" – or the practice of gifting tokens in massive giveaways – has come under the scrutiny of government regulators. But with the launch of a new product Wednesday, CoinList, an initial coin offering (ICO) facilitator spun out of the renowned startup incubator AngelList, is looking to streamline the process of airdrops in a way that doesn't run afoul with the law.

Aptly named Airdrops, the product runs users through compliance checks and attestations so that a token issuer can give CoinList's users free tokens. On top of that, if the issuer is looking for users that meet certain criteria (be it a profession or location), they can verify that users actually fit those backgrounds. In this way, CoinList CEO Andy Bromberg believes he has found a way to enable airdropped offerings at a time when many in the industry are looking for a compliant service. Token issuers themselves have had no shortage of issues here, with some, including video-monetization service Stream, even backing off the concept altogether because of the regulatory uncertainty.

Indeed, the SEC hasn't taken a formal stance on how it views crypto tokens delivered through ICO, airdrops or other forms of sales and giveaways, but it's clear regulators are currently investigating that question. Still, Bromberg is confident in his assembled solutions, and in interview, he hinted at dialogue with regulators that would attest to the viability of the service. "In our typical compliance first mindset, we sat down and said: Is there a way to pull this off without violating securities laws? And what we came to is the compliant Airdrops product," Bromberg told CoinDesk.

He continued:

"I can't comment on individual discussions with the SEC. What I can say is we are in frequrent communication with them and — based on our understanding of securities law — we are very comfortable with this."

Not only does the startup believe it has a solution for working under existing securities law, but it's also opening up its existing user base of past investors to new token issuers. Once users have gone through the company's compliance flow, they will be verified to receive airdrops, and CoinList will take a nominal fee from users (less than $1 per airdrop) to accept new tokens. To date, according to a CoinList spokesperson, it has facilitated more than $400 million worth of token sales through its platform, representing what could be a vast pool of people interested in investing and taking part in future crypto tokens.

Compliance as a service

While that pool of potential investors will likely be attractive for token issuers, Coinlist's product is opt-in – a feature added to reduce spam and mitigate the security threats that have become a common annoyance from crypto enthusiasts involved in such offerings. Also, CoinList says it's only willing to work with token issuers that are focused on complying with the law. And that's partly because CoinList will be promoting these projects for issuers.

Still, CoinList's Airdrops product seems to be set up whereby all the compliance effort is offloaded from the issuer, which many issuers will like since many are not securities law experts. CoinList's product allows for airdrops that might fall under Regulation S and Regulation D and will also collaborate with AngelList spin-off Republic, which has a license to sell securities under limited conditions to non-accredited investors using Regulation CF.

The company is also doing a country-by-country analysis to determine what sorts of checks issuers will need to do in order to airdrop to users around the world. Depending not only on the goals of the issuer and who they want to give to, different levels of know your customer (KYC) and anti-money laundering (AML) requirements will be needed, and whether issuers can to both accredited and unaccredited investors or one or the other.

And all of this has already proven enticing to token issuers. Bromberg told CoinDesk the company is in negotiations with more than one issuer to use its Airdrops product but declined to disclose which ones. While CoinList has so far been focused on fundraising, Bromberg said that potential issuers will not have to have a token sale on the platform in order to use the new product. "We're interested in exploring this model where in some cases … funding might be separate from distribution," Bromberg said.

The right recipients

Still, different companies might have very different goals for an airdrop, and Bromberg gave two examples of use cases he believes could work well. For example, he said a company with a token it believes regulators will recognize as a utility token, something used primarily to access a certain service, can use CoinList to get it in the hands of people who are likely to be the most interested.

This issuer might target software developers, and in this case, CoinList would enable them to authorize the airdrop to check a users Github API and distribute to developers with a certain commitment frequency. Getting the tokens in the hands of people who will ultimately use the token as intended "will help that network get to a place where that token is no longer a security," Bromberg said. Still, there could also be companies that want to issue securities, Bromberg said: "A company could tokenize some of their equity and give that equity, give those tokens, to early users on the product."

As such, CoinList will also offer a wide array of ways to authenticate users as meeting certain objectives, be it a certain audience on Twitter, a certain location in the world or a certain occupation. It can use APIs off other websites to verify these target goals to insure that an airdrop recipient meets them. Because it is running KYC/AML checks on all of them, it also verifies that each user receives a token allocation only once. "It prevents gaming the system," Bromberg said. It's an approach designed for an excess of caution, but one that's also ready to adapt.

"Whether or not these things are securities, we are treating them like securities to be as safe as possible," Bromberg said. To that end, some startups have been meeting with the SEC to ask for what's called a no action letter, a document that says regulators believe a given company has not violated securities law. If something like that comes to pass, CoinList is confident enough that the platform is ready for that, too.

Bromberg concluded:

"We'd be open to airdropping without the compliance layer."

Written By
Brady Dale

Brady Dale is a reporter who has previously written for Fortune, Technical.ly Brooklyn, Next City and Motherboard, among others. He grew up in Kansas and lives in Brooklyn. As an early user of the crypto-powered social network Steemit, Dale earned Steem Power by participating on the site.
https://www.coindesk.com/coinlist-compliant-airdrop-token-giveaways/

 

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TRON To Gift 30 Million TRX to Ethereum ETH Users

TRON To Gift 30 Million TRX to Ethereum (ETH) Users

TRON (TRX)–TRON has had an exciting month.

The currency is up nearly 110% since the start of April, with most of the growth coming within the last week. While all of cryptocurrency is benefiting from the resurgent price in Bitcoin and renewed interest in the market, TRON is posting one of the largest gains over that timespan. TRX is also coming off the successful Test Net update at the end of March, which served as a prelude for May’s official Main Net launch.

 

Billion Dollar Investment and AirDrop

In the midst of all this positive news for TRX, Justin Sun and the TRON foundation made two stunning announcements. The first involved the creation of a 2 billion USD investment fund, designed to reward developers in TRON and spur further innovation. Ripple created a similar stir two weeks ago with a 25 million USD investment into Blockchain Capital, a fund designed to recognize and accelerate cryptocurrency startups. TRON’s fund will target TRX developers directly, providing greater incentive to develop on the upcoming TRON network, in addition to giving the currency greater exposure in the industry of crypto.

The TRON Foundation also made a somewhat bizarre announcement that they would be “gifting” via airdrop 30 million TRX coins to current Ethereum holders. At first, most of the TRON community thought it was an error in translation on behalf of Sun, and that the airdrop would really be targeting TRX addresses. However, the airdrop is indeed intended for all Ethereum wallets holding over 1 ETH at the start of 2018. Ethereum addresses that qualify will be receiving a randomized amount of TRX between 10 – 100 coins.

Gifting TRX as a Marketing Strategy

While fork-produced coins and air drops have become fairly common in cryptocurrency over the past year, a Foundation-endorsed gifting of coins to a potentially rival currency is a bit of an anomaly. TRON’s AirDrop to Ethereum may be the first time that a crypto has given free coins, previously unannounced, to a currency that has the potential to be a rival in terms of technology.

Justin Sun has framed the ETH airdrop as a thank you to Ethereum and Ethereum holders for hosting TRX during its transition to Main Net, but the move creates substantial benefits for TRON valuation and adoption, at least from a marketing standpoint:

  1. Getting a foot in the door with ETH holders.
    Despite the relationship between TRON and Ethereum as an ERC-20 token, the two currencies will be on diverging paths following the Main Net update. By gifting TRX to the Ethereum community, TRON has the potential to gain new users on the emerging platform, or at least create a cohort of crossover investors. At 0.05 USD apiece, 10 – 100 TRX is not a significant amount of money, but it still makes ETH holders invested in the future of TRON, in addition to sparking an interest that would otherwise not be present.
  2. Broad publicity and brand building.
    TRON has carved itself out as a contrarian to  most of the market of cryptocurrency. While other coin groups are concerned with re-inventing digital money and the landscape of traditional fiat, TRON is attempting to disrupt the online entertainment industry by devising a new platform. Just Sun’s marketing has been criticized in the past for being overhyped. Gifting TRX to the Ethereum community is not only a headline-grabbing move, but also paints TRON as a distinction to the rest of the market: Justin Sun and the TRON Foundation are willing to take risks and think outside of the established box, a feature necessary to disrupt an industry as broad as entertainment.
  3. Avoiding a pump and dump.
    At first, the Ethereum airdrop was met with confusion from the TRON community, as most thought TRON holders would be the recipient of the free coins. However, there is a distinct problem with the TRON Foundation gifting coins to its user base: it creates the conditions for inflation and/or pump and dump. If TRON were to announce an airdrop coming to TRX holders (let’s say any wallet with over 1000 TRX) following the launch of Main Net, it would create a positive price run for investors looking to get free coins. The aftermath would be similar to other airdrops, and the price of TRON would tank back to pre-announcement levels. Sun and the TRON Foundation are avoiding creating any sort of empty hype in their currency by targeting the users of a different cryptocurrency, in addition to making the airdrop retroactive to wallet balances at January 1, 2018.

In all, the Ethereum airdrop is more than just a marketing strategy to get TRON into headlines. It also opens the door to greater interest and investment in TRX through broader appeal, and could serve as the basis for more cryptocurrency circulation in the future.

Written By
Stuart Redman
http://technewsleader.com/2018/04/26/tron-trx-airdrop-ethereum/

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What Is AirDrop? How Does It Work?

What Is AirDrop? How Does It Work?

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