Tag Archives: airdrops

AirDrop an unwanted nude pic and you could face stiff penalties

AirDrop an unwanted nude pic and you could face stiff penalties

   

It has come to the attention of the New York City Council

that there have been certain disclosures of – ahem – intimate images, conveyed via portable electronic pocket telephones, that have been inflicted upon strangers in order to harass, annoy or alarm. If a bill introduced last week by the council makes it into law, legions of hands-down-the-pants photographers could be left holding stiff penalties. The bill would make it a misdemeanor “for a person to send an unsolicited sexually explicit video or image to another person with intent to harass, annoy or alarm such other person.” Anybody who gets caught beaming their junk out could be looking at up to a year in jail, a fine of up to $1,000, or both.

It’s called cyber-flashing, and it’s a modern-day version of flashing that dispenses with the need for a trench coat and sneakers to make a quick get-away. The term refers to the practice of sending obscene photos to strangers through Apple’s AirDrop: an iOS file-sharing app that enables users to send photos, videos and documents instantly over a wireless connection to anyone within 30 feet who’s left the feature open to being contacted by everyone.

By default, AirDrop is set to limit devices to accept content only from people in your contact list. Unfortunately, people often turn it on to accept from anybody and everybody, and then they forget to turn it back to contacts-only. That’s led to a growing number of incidents, such as what happened last year to a Huffington Post UK writer who reported that she’d been gang-flashed with 120 down-the-pants images while riding on the London Underground.

At the time – August 2017 – London police didn’t think that it amounted to an epidemic despite headlines about the ”horrific public transport craze.” However, the UK is ahead of New York on this one: sending indecent images is classified under section 66 of the Sexual Offences Act (2003), given that it’s the same as exposing genitals and intending that the recipient “see them and be caused alarm or distress”. The penalty for breaking the law is a prison term of up to two years.

One little problem: anonymity

Penalizing the propagandists of penises and other private parts is a satisfying notion, but there’s a bit of a hitch: AirDrop allows people to send images anonymously. It also keeps recipients anonymous: senders might never know who, within a 30-foot radius, has received their little package, since AirDrop only identifies nearby phones by their nicknames. Be that as it may. Donovan J. Richards, a councilman from the New York borough of Queens and a co-sponsor of the bill, told the New York Times that the legislation is intended to raise awareness, and to lessen the sense of impunity that emboldens

the creeps who send the pics:

If you do it, the message we are sending is that the repercussion is a fine or jail time.

AirDrop works via Wi-Fi and Bluetooth. A similar function has recently come to some Android devices in the form of a feature called AirDroid that offers wireless file transfer. But what makes iOS devices particularly susceptible to cyber flashing is that AirDrop automatically shows an image preview when it asks a recipient to accept or decline a photo – thus, there’s no way of not seeing the fleshy missive if the feature is on and open to receiving content from one and all.

How to not see the fleshy missive

The way to avoid having your eyeballs assaulted is to either turn off AirDrop or set it for use only between phone contacts (Apple’s default setting).

Here’s how to keep the creeps off your phone:

  • In the main settings app, select General, and then AirDrop. Then select either Receiving Off or Contacts Only. The Everyone setting is what the creeps take advantage of.
  • On newer iPhones, you can also swipe up from any screen to bring up the control center. Press and hold the the network settings card that contains the Bluetooth and Wi-Fi icons to open another menu where you’ll find an AirDrop icon. Tap it, and you’ll be presented with options for Receiving Off, Contacts Only and Everyone.

Article Produced By
Lisa Vaas

Lisa has been writing about technology, careers, science and health since 1995. She rose to the lofty heights of Executive Editor for eWEEK, popped out with the 2008 crash and joined the freelancer economy. Alongside Naked Security Lisa has written for CIO Mag, ComputerWorld, PC Mag, IT Expert Voice, Software Quality Connection, Time, and the US and British editions of HP's Input/Output.

https://nakedsecurity.sophos.com/2018/12/04/airdrop-an-unwanted-nude-pic-and-you-could-face-stiff-penalties/

TP

So Long ICOs Hello Airdrops: The Free Token Giveaway Craze Is Here

So Long ICOs, Hello Airdrops: The Free Token Giveaway Craze Is Here

 

 

Imagine getting $1,000 just for joining a newsletter.

Well, that’s effectively what happened for those that subscribed to Onchain’s mailing list early on in the project’s lifecycle. The company, which is building a distributed network designed to connect real-world institutions, gave 1,000 of its “ONT” crypto tokens to people who signed up to receive its emails prior to a certain date.

Those crypto tokens were distributed earlier this month and are now trading for a little over $1 per coin, according to CoinMarketCap. As you may have noticed, there was no “sale” involved. “Ontology just raised a private round and then didn’t need to do a [public] crowdsale, so they just airdropped to eager NEO hodlers,” Keld van Schreven, a partner at blockchain investment company Kryptonite1, told CoinDesk.

Van Schreven’s comment speaks to a broader trend among token issuers. More are raising the money they need in private initial coin offerings (ICOs) and then skipping the public sale for what’s being called an airdrop. Effectively, these are just token giveaways to broader interested community members

Justin Schmidt of Translunar VC told CoinDesk:

“As a non-accredited investor, it is proving to be very difficult to find public sales to participate in until the tokens are traded on an exchange.”

Whereas the idea around public sales was that the people who buy in are those that understand the platform’s value and will promote the token, airdrops look to accomplish a similar goal, yet expecting that if people hold tokens, they’ll be interested in seeing the network, and the token’s price, grow and promote the platform just the same.

An internet search for “airdrops” or “free tokens” yields lots of websites, subreddits and Telegram channels that people can follow to gather up crypto tokens. And there’s even a Pokemon Go imitator under development that would allow companies to distribute free tokens to people playing an augmented reality game. But these airdrops might not only be about building a community, they likely also have something to do with an uncertain regulatory environment.

For instance, in the U.S., many ICO issuers and investors have become convinced that the Securities and Exchange Commission (SEC) will eventually declare that all crypto tokens are securities and as such, need to be registered under cumbersome laws. But even outside the U.S., completing know-your-customer (KYC) and anti-money laundering (AML) compliance for public sales takes a substantial amount of work and time. Speaking to token issuers stepping away from public sales, Minhui Chen, a partner at Global Blockchain Innovative Capital (GBIC) told CoinDesk, “Raising money from private sales is so easy.”

Tokens, away!

According to Jun Hasegawa, CEO of Omise, the company pioneered the airdrop concept on ethereum in August last year, after announcing it would airdrop its “OMG” tokens to every wallet that held more than 0.1 ETH. Omise decided to conduct an airdrop to raise awareness about the project, but Hasegawa spoke to the broader benefits of the distribution model, writing in an email to CoinDesk — via a spokesperson, “The real value of ethereum projects doing airdrops to all ETH holders is that it’s a crypto economic mechanism designed to incentivize ethereum project communities to maintain alignment with the entire ethereum community.”

The OMG token’s price has since been volatile (many crypto tokens are), but it has trended up overall. Yet because of the ease to airdrop, many, including van Schreven, think crypto wallets are starting to feel “like spam in email.” Indeed, in China, many people refer to these offerings as “candy,”

Chen said, continuing:

“Low-quality projects are taking advantage of airdrops to make a fake community.”

And Schmidt echoed that, saying, “Not having the choice to decline these airdrops can, in my opinion, cause some issues in the future.” As such, many investors, who nonetheless support the larger phenomenon also believe the mechanism could be used more effectively. Brayton Williams of Boost VC, a fund that favors crypto projects with a strong focus on community, thinks issuers could do a better job of targeting with airdrops. For example, he’d like to see issuers focus airdrops on people based on geography, demographics, etc. to cultivate the best market for the future platform.

Williams told CoinDesk:

“Airdrops combine the best of paid referral programs with stock options. Potential users get paid for joining or using the network and have the potential upside if the network increases in value.”

Some crypto companies are taking heed of this advice. Swarm, a blockchain for tokenizing private equity, just announced a few airdrop promotions, two of which encourage referrals, although by far the largest token sale on the platform is one that just drops tokens to existing cryptocurrency holders.

And Earn.com (formerly 21.co) has offered a standalone product for startups to distribute tokens directly to its members since the end of January. Startups that want access to Earn.com members pay small amounts of bitcoin to get users to sign up. But many are willing to pay a fee since the company validates every member, linking a wallet to one distinct person.

“The unique thing that Earn.com offers really is the validation side of things,” Dave Bean, from Earn.com’s sales team, told CoinDesk. He added that while many platforms that allow token issuers to airdrop might have a lot of email addresses, many individuals could be gaming the system by signing up multiple times with different addresses.

Firewall USA

That said, issuers in the U.S. are still skittish about doing airdrops to promote platforms. Stream, a blockchain-based video streaming platform, has delayed its airdrop indefinitely because of concern that airdrops could also be in violation of  securities law. “We can’t be sure,” said Todd Kornfeld, counsel at the law firm Pepper Hamilton LLP, pointing to SEC actions from 1999 which targeted companies giving away free traditional equity.

“Perhaps the SEC thought there was some kind of quid pro quo in giving those securities away and that resulted in a benefit to the issuer,” Kornfeldt said. “And that fact pattern is similar to the fact pattern of an airdrop.” This will definitely affect token issuers since the U.S. is the largest market both for investment and technology users. But until the regulatory environment in the U.S. becomes more clear, token issuers may experience far less hindrance in the rest of the world.

Although some aren’t letting the regulatory environment hold them back. For instance, Onchain isn’t done using airdrops to promote its platform. “The next community reward opportunity will be for active participation in Ontology after the release of the mainnet in Q2 2018,” Daniel Assab, a spokesperson for the company, said. “It won’t be for anything like a newsletter subscription, but no further details for now.”

Still many advise against airdrops for now. According to Chen, “We advise [token issuers]: Don’t do airdrops. Please do public sales.” In his mind, public sales actually engender a more authentic community. In other words, it brings in people who understand the project well enough that they’re likely to actually hold some of the tokens they buy to use in the future, instead of just dumping them on price rises.

Schmidt tends to agree, but hedges saying:

“It’s very early to see how this trend will result, but I do believe you need the actual users to have access to the tokens.”

Article Produced By
Brady Dale

Brady Dale

TP

Understanding the Different Types of Airdrops

Understanding the Different Types of Airdrops

The term “airdrop” describes a distribution event
that occurs when a cryptocurrency decides to distribute tokens to users for any reason.

For example:

  • A distribution event that occurs after an ICO goes live and the smart contract for the ICO sends new tokens to the existing addresses of users who participated in the pre-sale. For example, one buys into an ethereum-based ICO, then on the airdrop date the token is sent to user’s wallets and they can then “add the token” to their Ethereum wallets (see the KIN and UKG ICOs for example).
  • A distribution event after a hard fork or the creation of a new token which results in existing coin holders getting “free coins,” but where the platform being used requires the distribution of tokens. For example, a fork on the Ethereum network that creates a new token on the Ethereum network or another coin’s network (see fork-airdrop hybrids like the Ethereum Classic Callisto Airdrop and the Loopring Airdrop for example).
  • A distribution event where tokens are given to existing holders as a reward for sticking with the cryptocurrency or as an incentive to get people to hold the cryptocurrency or a related token (see the WAVES Bitcoin Cash airdrop for example).

With the above in mind, we can say then that the term “airdrop” refers to an event where tokens not associated with addresses become associated with them, generally due to a person participating in a pre-sale (like with an ICO) or holding existing coins (like with some forks). However, with the above noted, sometimes the term “airdrop” is used loosely to describe distribution events regardless of the specific mechanics (like in the case with some forks that use the term “airdrop” in their PR).

Since there is a little bit of disconnect between how the term is sometimes used (especially factoring in how it is used on social media) and what the term means in a more pure sense, it is helpful to understand the different definitions. That is the gist. If you want to understand token airdrops (the kind where new tokens are associated with existing wallets), see: The latest crypto PR craze: ‘Airdropping’ free coins into your wallet by Venturebeat.com.

Airdrop Snapshot Block Height and Airdrop Distribution Date:
An airdrop may include either/or 1. an Airdrop Snapshot Block Height, a block height that one has to hold an existing cryptocurrency during to qualify for the airdrop (a snapshot of the existing ledger is taken at that block height), and 2. an Airdrop Distribution Date, a date upon which the tokens are airdropped to existing wallets. Airdrop snapshot dates would be be used with fork-airdrop hybrids, Airdrop Distribution Dates are common to all airdrops and simply describe the date on which the airdrop occurs.

The Semantics of Airdrop:
Airdrop has become somewhat of a PR term here in 2018 and that has led to some questionable usage of the term. As noted, sometimes the term is used to describe a distribution event that occurs after a hard fork goes live and coins can be claimed… even in cases where nothing is technically being airdropped. In cases like this, the term “airdrop” is being used loosely. The slightly confusing thing here is that, as noted above as well, a fork can have an airdrop. For example, in the case where a snapshot of the ledger is taken, the software is forked, but the distribution after the fork occurs on another coin’s network (like with the Loopring example above). I think part of the confusion is due to the fact that there is no good word to describe the distribution date after a fork where the whole of the software is forked (and of course, that distribution is the exciting part where people get “free” coins)… Thus, sometimes the term airdrop gets borrowed to describe distribution events that aren’t actually airdrops.

The General Meaning of the Term Airdrop:
If you want to airdrop a file from your iPhone to another iPhone, you take your file, share it over WiFi or Bluetooth, and then it appears on the other person phone. The person didn’t have the file, now they do. It was “dropped,” through “the air;” “airdrop.”

Article Produced By
Cryptocurrency Facts

https://cryptocurrencyfacts.com/what-is-a-cryptocurrency-airdrop/

TP

The Blockchain wallet plans a 125M airdrop of Stellar crypto to drive mainstream adoption

The Blockchain wallet plans a $125M airdrop of Stellar crypto to drive mainstream adoption

Blockchain, one of the world’s biggest crypto wallets,

plans to give away a vast amount of cryptocurrency in a bold move to scale the adoption of crypto to a more mainstream audience. Blockchain and the Stellar Development Foundation (stellar.org) will distribute $125 million worth of Stellar lumens [XLM] to Blockchain’s users. Blockchain is claiming this is the largest airdrop in the history of crypto, and potentially the largest consumer giveaway ever — and to most outside observers, it looks that way.

Critics of the move will, however, may lay the charge that it’s a cynical move akin to cheap marketing techniques. Whatever the case, most people would probably say they’d have quite liked someone to “give them a bitcoin” a few years ago… It remains to be seen, however, what effect it will actually have on the ground in regards to crypto adoption. Accessible to anyone with a Blockchain wallet, Blockchain says that the first batch of recipients will receive their lumens, Stellar’s native digital currency, this week — for free. The Stellar network has gained a reputation for scalability, with its lumen token enabling competitively quick, low-cost worldwide transactions. It has its critics however, and not every crypto fan out there will be impressed.

In a statement, Peter Smith, CEO at Blockchain, said: “At Blockchain, we’re committed to putting our users first. Providing exclusive access to the next generation of cryptoassets allows new and existing users alike to test, try, trade, and transact with new, trusted cryptoassets in a safe and easy way. We’re empowering our users with private keys, which allow them to go beyond just storing their crypto to actually using them. In turn, we can help build a bigger and more engaged crypto community, and drive network effects that make the ecosystem more useful and valuable for the many rather than the few.”

Stellar is Blockchain’s first airdrop partner following the launch of the company’s Airdrops Guiding Principles framework in October 2018. Jed McCaleb, co-founder of Stellar Development Foundation, said, “We believe that airdrops are central to creating a more inclusive digital economy. Giving away lumens [XLM] for free is an invitation to communities to design the services they need. Our hope is to eventually have global citizens own and use lumens, in both developing and developed economies. By working with Blockchain to increase the availability and active use of lumens on the network, leveraging their almost 30 million wallets, we will increase the network’s utility by many orders of magnitude.”

As part of the airdrop, Blockchain is also partnering with a number of organizations to further the adoption of lumens, including charity: water, Stanford d.school’s emerging tech initiative, code.org, and Network for Good who share the company’s vision for using this transformational technology to build a better future. Blockchain plans to reveal specific details of each initiative in the coming weeks. Carissa Carter, director of Teaching and Learning at Stanford d.school, said, “The strength of any network is derived from innovation. We are excited to join Blockchain on this airdrop to empower some of the most brilliant and creative minds to start experimenting and building on Stellar’s network.”

Article Produced By
Mike Butcher


Editor At Large

As a writer, editor, interviewer, moderator and columnist in the tech media world he covers everything the smallest tech startups and the largest tech giants. Lately, he’s been writing a lot about Blockchain and Crypto. Mike has been named one of the most influential people in European technology by various newspaper and magazines. He founded The Europas Awards, the non-profit Techfugees and has advised the UK government on tech startup policy. He was awarded an MBE in the Queen’s Birthday Honours list 2016 for services to the UK technology industry and journalism.

As well as being a long-time Writer, Broadcaster and Editor Mike is also co-founder of TechHub.com, a project to merge a thriving community with office space for fast-moving startups; co-founder of the UK’s Coadec.com lobbyist for startups; the non-profit TechVets for UK military veterans, and the UK event series ThePathfounder.com. Mike has written for UK national newspapers and magazines including The Financial Times, The Guardian, The Times, The Daily Telegraph and The New Statesman. He is a former editor of New Media Age magazine, the leading new media weekly in the UK, and the European edition of The Industry Standard magazine.

In 2000 he was nominated as NetMedia’s European Internet Journalist of the Year. In 2004 he was voted ‘One of the 100 Innovators of the UK Internet Decade’ by GfK NOP, the fourth-largest custom research business in the world. In July 2008 he was put at No. 47 out of the Top 100 people in London’s creative industry by The Independent newspaper and The Hospital Club. In August 2008 TechCrunch Europe was awarded the best “Web 2.0 and business blog” in the UK, by the readers of Computer Weekly magazine. In 2009 it was named as one of the Top 10 blogs out of the UK. Also in 2009 Mike was named one of the Top 10 bloggers on Twitter in the UK. In October 2009 he was named one of the Top 50 most influential Britons in technology by The Daily Telegraph. In April 2010 he was in Wired UK’s Top 100 influencer list, in 2011, in 2012, (there was no Top 100 list in 2013), in 2014 and again in 2015. In April 2010 TechCrunch Europe was shortlisted in the Specialist Digital Publisher category of the prestigious UK-based Association of Online Publishers’ Digital Publishing Awards. In November 2010 he was named as one of London’s most influential people in New Media and “king of dotcom commentators” by The Evening Standard Newspaper. He has been listed as one of the Top 100 most influential people on Twitter in the UK. He was named in the TechNation200 Almanac. He has been named as one of “The 100 coolest people in UK tech” by Business Insider. He was named in the “Smith & Williamson Power 100”. In 2016 British GQ magazine named him one of the 100 Most Connected Men in the UK. He has spoken at the prestigious World Economic Forum, the Monaco Media Forum, Le Web, Web Summit and DLD among many other conferences. Mike is a regular commentator on the technology business, appearing on BBC News, Sky News, CNBC, Channel 4, Al Jazeera and Bloomberg. Mike has advised the UK Prime Minister on tech startups, served on the Mayor of London’s Digital Advisory Board, the ‘Smart London’ Board and been a Technology Ambassador for London. He was awarded an MBE in the Queen’s Birthday Honours list 2016 for services to the UK technology industry and journalism. Mike’s personal blog is mbites.com, while he Tweets.

https://techcrunch.com/2018/11/06/the-blockchain-wallet-plans-a-125m-air-drop-of-stellar-crypto-to-drive-mainstream-adoption/

TP

What is a crypto currency Airdrop?

What is a crypto currency Airdrop?

     How to get free tokens on Airdrop?

In cryptocurrency, the term “airdrop” is used to describe a type of distribution event for a cryptocurrency where tokens are distributed to existing wallets. Or more simply, an event where “free coins” or coins purchased during a pre-sale are “dropped” in existing wallets. In other words, the term “airdrop” describes a distribution event that occurs when a cryptocurrency decides to distribute tokens to users for any reason. For example: A distribution event that occurs after an ICO goes live and the smart contract for the ICO sends new tokens to the existing addresses of users who participated in the pre-sale. For example, one buys into an ethereum-based ICO, then on the airdrop date the token is sent to user’s wallets and they can then “add the token” to their Ethereum wallets.

A distribution event after a hard fork or the creation of a new token which results in existing coin holders getting “free coins,” but where the platform being used requires the distribution of tokens. For example, a fork on the Ethereum network that creates a new token on the Ethereum network or another coin’s network (see fork-airdrop hybrids like the Ethereum Classic Callisto Airdrop and the Loopring Airdrop for example). A distribution event where tokens are given to existing holders as a reward for sticking with the cryptocurrency or as an incentive to get people to hold the cryptocurrency or a related token.

How to participate in crypto airdrop?

This can also be done on other blockchains, but Ethereum and Bitcoin are the most used for this airdrop format. Other (often smaller) airdrops require social media posts or you need to contact a member of the team on the Bitcointalk forum. This form is gaining more popularity since September 2017.

  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.
  2. The Ethereum Wallet Must be ACTIVE.
    By active, we 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. Telegram Account:
    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. Twitter Account:
    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. 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.

Another possible way to get free e-coins is a faucet. This means you get a small amount of free crypto for a longer period of time. Some wallets, crypto casino's or crypto promotion sites run this type of airdrop.

Why would anybody give away free cryptocurrency?

To offer coins for free the people are the product. With doing an airdrop the project creates awareness about their ICO or token. It brings people to the project that otherwise would not have owned or heard about it. It could lead to token price appreciation, since people value a token they own higher then a token they don't own. This is called the endowment effect: "In psychology and behavioral economics, the endowment effect (also known as divestiture aversion and related to the mere ownership effect in social psychology) is the hypothesis that people ascribe more value to things merely because they own them." In addition to that I think people are more likely to buy a token that they previously owned or still own, since they are already familiar with it.

A crypto airdrop would create a community/network of people who own the tokens. If you would list the token distribution after an ICO in a pie graph, a large part of the pie is still owned by the Dev's or project. Another large part is owned by people who joined a pre-sale. And a reasonable part is owned by people who invested in the ICO. An airdrop adds a extra slice to the pie and that slice will have the most people in it. Decred still shows a pie-graph like this example on their homepage.

An crypto airdrop also plants a seed. When you look at Coinmarketcap you will see a list of thousand coins. Just on page one you can see 100 coins listed. However if you have or had a coin that name is still in your brain. The seed is planted and whenever you check coinmarketcap and scroll down, the name of the free e-Coin will jump out and people will check how it is doing. If they see an article that the free e-Token is doing well or bad, they are more likely to click it if they own it or previously have owned it. It's just like advertising.

Article Produced By
Bitcoin Wiki

https://en.bitcoinwiki.org/wiki/Airdrop

 

TP

Airdrop of Crypto Tokens Hits Regulatory Flak

Airdrop of Crypto Tokens Hits Regulatory Flak

On August 14, 2018, the U.S Securities and Exchange Commission (“SEC”)

issued a cease and desist order (the “Tomahawk Order”) against Tomahawk Exploration LLC (“Tomahawk”) and David Thompson Laurance (“Laurance”) for their actions in connection with an initial coin offering of digital assets called “Tomahawkcoins” or “TOM” (the “Tomahawk ICO”). Tomahawk and Laurance’s actions were problematic for the same reasons cited by the SEC in other recent orders related to digital assets (e.g. the Munchee Order). Consistent with such orders, the SEC determined that Tomahawkcoins are securities because they constitute investment contracts under the “Howey” test. However, what makes the Tomahawk Order particularly noteworthy are the lessons to be gleaned regarding cryptocurrency “airdropping.”

What is Airdropping?

“Airdropping” is the distribution of tokens or cryptocurrencies without monetary payment from the token recipient. The practice of airdropping tokens became prevalent in late 2017 and early 2018 when ICOs began to face stricter regulatory scrutiny. Token airdrops or “free crypto” distributions have been particularly popular in conjunction with ICO marketing campaigns, such as the Bounty Program (“Bounty Program”) offered in connection with the Tomahawk ICO. As part of its Bounty Program, Tomahawk dedicated 200,000 Tomahawkcoins, and offered third-parties between 10-4,000 Tomahawkcoins for activities such as making requests to list Tomahawkcoins on token trading platforms, promoting the coins on blogs and other online forums, and creating professional images, videos or other promotional materials. Ultimately, Tomahawk airdropped more than 80,000 Tomahawkcoins to approximately 40 wallet holders as part of its Bounty Program.

Airdropping as a Section 5 Violation

Under Section 5 of the Securities Act of 1933, as amended (the “Securities Act”), any offer and sale of securities must be registered with the SEC or exempt from registration. Section 5 regulates the timeline and distribution process for issuers who offer securities for sale. In the Tomahawk Order, the SEC found that Tomahawk’s Bounty Program constituted an offer and sale of securities because “[Tomahawk] provided TOM to investors in exchange for services designed to advance Tomahawk’s economic interests and foster a trading market for its securities.” Despite not receiving payment in exchange for the airdropped Tomahawkcoins, the SEC nonetheless found that the airdrops made in connection with the Bounty Program constituted the offer and sale of securities: “a ‘gift’ of a security is a ‘sale’ within the meaning of the Securities Act when the donor receives some real benefit…Tomahawk received value in exchange for the bounty distributions, in the form of online marketing…in the creation of a public trading market for its securities.” By offering and selling Tomahawkcoins without having a registration statement filed or in effect with the SEC or qualifying for an exemption from registration, Tomahawk and Laurance were found to be in violation of Sections 5(a) and 5(c) of the Securities Act.

Potential Consequences of a Section 5 Violation

In light of the Tomahawk Order, it is important to understand the potential consequences of a Section 5 violation, which may include the following:

  1. SEC Enforcement Action:
    In addition to having the power to impose monetary penalties, the SEC can also bar an individual from serving as an officer or director of a public company for a period of several years. Through the Tomahawk Order, the SEC not only imposed a $30,000 penalty (a reduced amount due to Laurance’s inability to pay a civil penalty) but also barred Laurance from acting as an officer or director of a public company or from participating in any offering of a penny stock.
  2. Rescission Rights:
    Under Section 12(a)(1) of the Securities Act, purchasers of securities that were sold in violation of Section 5 of the Securities Act have a right of rescission. This right of rescission is essentially a “put right” whereby the purchasers can force the seller of the securities to buy the securities back at cost plus interest.
  3. Control Person Liability:
    Even if a person did not directly take part in the airdrop, under Section 15 of the Securities Act, such person might still face liability. Under Section 15 of the Securities Act, each person who, by or through stock ownership, agency, or otherwise, controls any person who violates Section 5 of the Securities Act, may also be jointly and severally liable for such Section 5 violation.
  4. Accounting Consequences:
    Potential payments in respect of rescission rights may be required to be booked as contingent liabilities under GAAP, which can negatively impact financial statements and the issuer’s ability to comply with financial covenants under bank documents.

Conclusion

Any company considering airdropping tokens or other digital assets should make sure to work with their securities lawyers to confirm that such actions do not run afoul of federal or state securities laws. Directors and Officers Insurance Policies do often cover these types of claims, but just because someone has car insurance does not mean they should drive recklessly.

Article Produced By
Robert Wernli, Jr.,
Robert Weber
Osama Khan

https://www.corporatesecuritieslawblog.com/2018/08/crypto-tokens-regulatory-tomahawk/

TP

What Is An Airdrop And How Does It Work?

What Is An Airdrop And How Does It Work?


In the cryptocurrency world, Airdrop has a different meaning

to when is used in the military, and specifically relates to gifts of tokens. Free crypto, yay!

What is an Airdrop?

A crypto Airdrop is the process in which tokens are distributed free of charge to users’ wallets in a blockchain. It is usually carried out by start-up companies in the ICO stage as a way to promote their projects and make themselves known. 

Why do cryptocurrency Airdrops happen?

There are several reasons why projects use Airdrops. The most frequent are:

Marketing strategy:
 generally, companies use it to attract attention in its ICO stage, so that interested parties are encouraged to investigate and then invest in the token. These strategies are also implemented with the launch of new cryptocurrencies that result from a fork, such as Bitcoin Cash.

Loyalty rewards: 
an Airdrop uses wallets and cryptocurrency exchange sites to provide free tokens as a way to reward their customers and subscribers for being loyal to their platforms. A relevant case: in 2017 Binance gave 500 TRX to their members.

Decentralization:
this helps from any point of view to any cryptocurrency platform and generates more security for the network and users. Example: OmiseGO distributed a large part of its tokens to Ethereum users.

Examples of successful airdrops

It is hard to define what constitutes a ‘successful’ airdrop, or to quantify its success. Nevertheless, let’s have a look at some of the most notable airdrops to date.

ByteBall airdrop

ByteBall is a Directed Acyclic Graph, or DAG-based, cryptocurrency network that features two native currencies: bytes and blackbytes. This ICO is notable because it launches airdrops to coincide with full moons. ByteBall distributes its token via airdrops for users who hold Bitcoin in their wallets.

OmiseGo airdrop

OmiseGo is now an established Ethereum-based platform for peer-to-peer (P2P) value exchange. But in 2017, it was just another startup ICO. Back in July 2017, OmiseGo launched a widely publicized, large-scale airdrop, where it distributed 5% of all its tokens to all Ethereum addresses that hold a balance over 0.1 ETH as of block 3988888. The airdrop took place exactly on July 7th 2017, 16:36:56 UTC.

Forks vs Airdrops

Airdrops are not to be confused with forks, another one of those terms with seemingly incongruous meanings.

Fork: A definition

Throughout its sometimes volatile history, Bitcoin has undergone changes and gone through forks which have heralded the inception of new currencies. The term “fork” signifies a code change to a coin’s underlying blockchain protocol. The new code might add new features, speed up the blockchain, or introduce other changes. Forks can be hard or soft. During a hard fork event, a currency splits into two. This results in two versions of the same currency (old and new) coming into existence. Hard forks are major changes to the blockchain protocol that underpins a currency, and are thus prone to create extreme market volatility. A soft fork also means a split, but the difference is that only one currency remains afterwards.

The Bitcoin Cash fork of 2017

August 1, 2017, became etched in the history of Bitcoin as its offspring, Bitcoin Cash, was born. A new currency came into existence that day, and any Bitcoin holders received the equivalent amount of Bitcoin Cash. While this fact bears similarities with an Airdrop, as users received “free coins”, it’s not quite the same. Airdrops are designed almost as marketing tools, to either generate interest, commercial leads, or simply maintain the buzz., while forks are major changes to a blockchain protocol, designed to split a currency.

Where to find free crypto Airdrops

There are pages in social networks, forums and applications that keep the community updated with relevant information that helps them select the most popular or current Airdrops. One website that offers interesting and reliable information about Airdrops is 

AirdropAlert.com.

Of course, CryptoCoin.News also has a section dedicated to free crypto Airdrops, in cooperation with AirdropAlert.com.

Scam Airdrops

The attractiveness of Airdrops opens the doors to scams, so it is important to verify the information of an advertisement with the official page of its promoter. No project that has an Airdrop planned will request a private key, personal data or a transfer of funds to be eligible for the distribution of the tokens.

Conclusion

An Airdrop is a useful strategy in many ways; it has brought to the ecosystem a new way of capturing the public and spreading new cryptocurrencies. In addition, it has served the market to motivate users in new project investments and build loyalty in others. And last but not least, Airdrops can earn you some free money, the easy way!

Article Produced By
Abel Colmenares Napolitano

Abel is a Fintech enthusiast experienced with blockchain technology. With a BBA and a master degree in e-commerce, he combines his passion writing about the Blockchain Industry, Cryptocurrencies and Fintech. When he is not working, he loves playing online games.

 

https://cryptocoin.news/analysis/what-is-an-airdrop-in-the-cryptocurrency-world-and-how-they-works-9315/

TP

Six Tips To Make Your Airdrop A Success

Six Tips To Make Your Airdrop A Success

Airdrops are becoming increasingly frequent

and are a common trend in the crypto space. With thousands of tokens currently in existence and a constant stream of more in development, the number of scam airdrops is also on the rise, therefore distinguishing between legitimate and fake airdrops is a big issue for potential airdrop participants.

With the fallout from the Cambridge Analytica and Facebook data privacy scandal still fresh in people’s minds, there is a heightened awareness around disclosing personal information and data protection — meaning existing mechanics such as Google forms (which require the input of personal details) may discourage potential involvement. Google form airdrops also require significant time and manpower to cross-reference Telegram users with registrants. Enter the progressive airdrop: by enabling live syncing between platforms, this new kind of technology allows companies to bring more value to their communities, as well as monitor participant engagement.

So what can companies do to ensure a smooth and successful airdrop?

  1. Use Telegram

By conducting everything in one place such as messaging app Telegram, it makes life easier for your users who won’t have to struggle with referral links, switching between multiple apps, or losing friends to drawn-out processes. Instead of copying and pasting, the progressive airdrop model (like the one qiibee uses) will automatically detect when you add a new member to your Telegram group. Having everything and everyone on Telegram also helps to build your community and encourages conversation starters.

  1. Live sync across platforms

By implementing technology that enables live syncing between platforms, this back-end development can help resolve logistical issues, thus eliminating any scope for human error during the process and creating a more seamless system — bringing added value to both your users and your Telegram group.

  1. Make it as user-friendly as possible

Consumers know the value of their data, and with ethics and regulation under the spotlight recently, it’s important to take the privacy of your participants into consideration. Airdrop registration should be a simple task with minimal input needed. While existing mechanics like Google forms require the input of personal details, this can be off-putting to some people and discourages potential involvement. To encourage more involvement, keep things on a need-to-know basis.

  1. Reward engagement

Unique to the progressive airdrop model, participants are provided with the opportunity to access more tokens through engagement. Giving control to participants and acknowledging their interactions and milestones is invaluable in building trust. Recognizing achievements with a badge system or leaderboard can motivate participants to be more active in your community channels. This forms a mutually beneficial relationship and further builds loyalty.

  1. Monitor spam

Managing community channels such as Telegram during the airdrop process often means dealing with increased volumes of spam and trolling. This can be detrimental to your credibility and have a negative impact on engaged participants contributing to the conversation. Using anti-spam and anti-abuse policies in conjunction with sentiment detecting and text recognition technology are simple ways of maintaining high-quality discussions.

  1. Utilize social media

Integrating follow features into your airdrop mechanic invites participants to continue the conversation across different channels. Spreading the word on Twitter, Facebook, and YouTube about a system like the progressive airdrop not only helps to reach new audiences, but bolsters your own message on social media.

Article Produced By
Gabriele Giancola

Gabriele Giancola, is Co-founder and CEO of blockchain-powered loyalty ecosystem, qiibee. A serial entrepreneur, Gabriele has co-founded multiple companies including gratis-auto.ch, a start-up focused on mobile outdoor advertising, and a mining farm with around 60 miners. Gabriele holds a Masters in Business Management from the University of St. Gallen in Switzerland.

https://www.valuewalk.com/2018/05/crypto-airdrop-guide/

TP

Crypto Airdrops

Crypto Airdrops

This is you complete guide to crypto airdrops,

in the below post we have listed down almost all of the FAQ that you need to answer on the subject.

What is a Cryptocurrency airdrop?

Cryptocurrency airdrop means, quite literally, dropping free crypto coins directly into your wallet. There are no fees, no charges, airdrop coins are simply transferred free of cost to your coin wallet. What is a cryptocurrency wallet? It’s a big topic and I will touch on this later in this post. Not satisfied with the crypto airdrop meaning? Well read on.

How do you get airdrop for free? Even if you are a newbie and just joined in into airdrop cryptocurrency mania you can still easily get free airdrop coins in 2018. The best way to stay updated on the upcoming airdrops is to join our crypto airdrops telegram channel. You can also find upcoming crypto airdrops on reddit as well on facebook. Our Crypto Airdrops List on our website is always updated with the latest and the best coin airdrops of 2018. You should also check our crypto airdrops calendar so that you can apply daily!

Of-course these airdrops are not 100% free, nothing really is in the world, right? Sometimes, there are certain tasks that the one needs to do to get free airdrops. These tasks are called bounties and in same way entitles you earn free eth tokens in airdrops. In our airdrop alerts to our users we send almost all kind of airdrops, except of course the obvious scam crypto coins. In short the idea is to reward early adopters of cryptocoins. These blockchain tech projects reserve a part of their tokens just for the free distribution to their crypto community.

While at other times you already need hold some type of altcoin or even bitcoin to receive airdrop coins. E.g. In two very popular cryptocurrency airdrop holders of bitcoins received free bitcoin cash and holders of Ethereum received free tokens of OmsiGo. To claim airdrop tokens you sometime need to register on project’s airdrop website or join airdrop telegram group. And yes, if the project is asking for ETH address don’t forget to provide one. Now you know what is an airdrop. Right? But wait there is lot more! In my post I have explained how to get free tokens and tracker on the site provides a list of airdrops.

Upcoming Crypto Airdrops

Are Crypto Airdrops safe?

I will say 99.99% yes. To get an airdrop coin all you have to give is some non-personal details and 5 minutes of your time. However, there do are frauds in cryptocurrency airdrops. There are some shady coin project which have no intention to do anything except of-course asking for donations for airdrop tokens. In such case you should always stay alert and avoid these coin projects by miles. Remember the golden rule – never ever share your private keys while applying to a coin airdrop. Reporting such issues is the best way forward as it alerts the whole community of the bad intentions of the developers.

Types of Crypto airdrops

There are a few different types of coin airdrops but for the brevity (and for the profit!) we will focus on Ethereum airdrops or ETH airdrops, in short. That being said, here are a few different kinds of airdrops: Crypto airdrop forks: Cryptocurrency airdrop forks basically means that an existing blockchain tech is forked in two and a new airdrop coin is created. Crypto airdrop forks can be soft or hard fork.

It is a hard fork where the real money is. Over the period of time, both Bitcoin forks and Ethereum forks have made a lot of free coins for their holders. The idea is simple, when a new cryptocoins are created it is distributed free to the community which is already holding the older coin. Ethereum classic was a result of hard-fork and is a great success, Bitcoin Cash too was forked out from Bitcoin and had been a massive value add to the Bitcoin holders. Who doesn’t like to receive free coin airdrop, right?

Ethereum Airdrops or ERC-20 Airdrops: Ethereum is a sort of a gold standard of cryptocurrencies, mainly because it is a fast growing platform with a well established cryptocurrency community. There are many other platforms such as Waves which also do airdrops, but they are rare and in-between. Ethereum not only provides platform to create your own DAPP (distributed app) but also allows you to create your own coin. Yes, anyone, with a wild thought in mind can go ahead and create his own new ether token! That’s the prime reason for a flood of ICOs (and hence ICO airdrops) that we are seeing these days.

Ethereum Airdrops are quite straightforward, at least most of them. The way it works is you apply for a cryptocurrency airdrop for a blockchain tech and receive airdrop coins directly in your Ethereum wallet. Crypto Faucets: While you can contest that faucets are not really cryptocurrency airdrops, they do by definition give away free Cryptocurrencies. They are 100 different faucets right now, but 99.99% of them are spammy and not really worth your time. I personally like free bitcoin (link on the top menu) which has been operating successfully for several years now, and it also doesn’t bombard your with advertisements.

Fun fact:

Free bitcoin was given in some faucets during the very early days. Many of them are crypto millionaires now. You can also call it Bitcoing Airdrop. Sweet, right?

Crypto Airdrops – Should you apply?

Well, for one if you are an absolute beginner in cryptocurrencies, airdrop is the best way to wet your feet. There is zero risk in coin airdrops, as only thing you have to invest is 5 minutes of your time. New altcons are flooding the cryptocurrency market everyday and hence the flood of free airdrops tokens too! There way to many coins for someone to track, so we do the job for you and send our users airdrop alerts.

Since absolutely anyone with little bit of invest can create his own ERC-20 token, there are a lot of shit tokens out there which serve absolutely no purpose. Here on https://airdrops.me we weed out such spammer coins and save you from wasting time. That being said we only remove the obvious low-life fraud crypto tokens and won’t remove anything else as we want you to do as many as coin airdrop possible.

Some of the businesses are actually genuine and not pump-n-dump kind of quick schemes that promoters are looking to make quick bucks on. Seriously, there are so many scams out there, so please do your due diligence, if you really are interested in investing. There are gems in between, and this is what you need to work on. Projects like Hawala tokens and OmsieGo have really made good returns for people who initially applied for their airdrops.

So, how will just a few Crypto projects will make you good money? Are these airdrops really worth your time? The answer totally depends on you… How so? Well, the key to actually striking it big is referrals. Almost every free airdrop comes with an affiliate system, the key is to apply for all these airdrops and then promote them with your affiliate id. Profit!

Why are all these projects giving free Cryptocurrency?

So, now you understood new cryptocoins are given away in airdrop for free. But you still can’t make sense of why these coin projects are giving airdrop free? It may appear that these projects are giving away free Cryptocurrency but it is far from the truth. They are actually paying to do certain crypto bounty tasks, at a bare minimum level they are making you join their telegram group and hence building a telegram community.

There are many other tasks they can ask you to do, e.g. sharing the cryptocurrency airdrops on facebook, follow them on twitter for airdrop alerts, clap them on medium blog etc. Social indicators not only promote their projects but also adds a sort of confidence in their investor when they look at their social media followers. Lastly, but not least, Blockchain tech projects gather email addresses which further help them promote their ICOs … to You! Yes, they know if they bombard you with emails just enough, some of you will actually become their customer and buy their ICO tokens. I, personally, absolutely do not recommend buying an ICO, but you be your own best judge.

How to Apply for ERC-20 Ethereum Airdrops?

At the most basic level the airdrop will ask you for two things:

  1. Ethereum address?—?where it will airdrop the tokens.
  2. Telegram id?—?where you will join their projects

This being said, there are a few different style of airdrops and we will cover them all in a separate blog post! We will show how to apply for each of these Crypto airdrops step by step. Also, note that for your convenience we send you airdrop alerts when you subscribe to our various channels.

You can easily create a ether wallet address by going over to myetherwallet or MIST or metamask wallet. When you create a new crypto wallet you will receive a pair of public and private key. The public key is your ETH address you will need to apply for a coin airdrop while the private is something you will need to do transactions like sending your ETH tokens to some other address. Needless to say, in order to safely apply to coin airdrops you need to keep your private key safe. Never share your private key with a coin airdrop.

How to check your free airdrop balance?

Checking your airdrop token balance is a very simply process. There are two main website I use to check my free tokens balance – ethplorer and etherscan. Go to any of these website and enter your ETH address to know your free tokens balance.Another useful crypto tip is to go to this coinmarketcap.com link. This is where all the new crypto airdrops get listed. This is helpful to check in which crypto exchange your free crypto is listed, what is the current market price and how much is the trade volume. All of this comes handy when you are trying to sell your new cryptocoin.

What to do when you receive an airdrop coin?

Coin airdrop would typically drop your ether tokens right in your mew address. Now, you can either continue to hold these free cryptocurrency tokens or simply transfer to an exchange to sell them at a profit. It takes time for new airdrop coins to get listed on exchanges but when they do you will see a significant price movement. You can sell your airdrop coins if you are sure about its blockchain tech future or if you understand their business, keep on holding these free new cryptocoins. Bookmark this Airdrop alert website to stay on top of the upcoming airdrops of the new cryptocoins. Don’t forget to subscribe to our airdrops crypto alert on twitter, facebook and reddit.

Article Produced By
AirDrops.me

https://airdrops.me/crypto-guide/crypto-airdrops-ultimate-guide/

TP

Cryptocurrency-Airdrops

Wouldn’t it be nice if money just fell from the sky?

In the world of cryptocurrency, sometimes it happens.The word "airdrop" immediately evokes images of parachutes and crates filled with vital supplies floating through the sky. When you hear "airdrop," you might think of food sent to starving populations or perhaps ammunition replenishments for embattled soldiers. In the cryptocurrency space, however, the term has taken on a different meaning altogether.

What is an airdrop?

According to members of Bitcoin Talk circa 2016, an airdrop is a "free giveaway of pre-mined coins." Perhaps surprisingly, the idea of giving away money isn't totally new. In a 1969 paper entitled "The Optimum Quantity of Money," economist and Nobel Laureate Milton Friedman suggested

a thought experiment.

"Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in bills from the sky, which is, of course, hastily collected by members of the community. Let us suppose further that everyone is convinced that this is a unique event which will never be repeated."

By dropping money from the sky, a nation's central bank could increase the amount of money in circulation. In turn, this would stimulate economic activity and augment inflation. Colloquially referred to as "helicopter money," this unconventional tool of monetary policy has never been seriously considered – notwithstanding a passing reference in a 2002 speech about deflation by former Fed chairman Ben Bernanke, earning him the nickname "Helicopter Ben." Returning to the world of cryptocurrency, airdrops seem most common among projects that are just starting out. It's a way of putting coins in the hands of potential users, not adjusting monetary policy for an existing economy like Friedman imagined.

For instance, in 2014, a politically disenchanted programmer named Baldur Friggjar Odinsson promoted Auroracoin (AUR) using an airdrop to the people of Iceland. At the time of its creation, AUR was meant to be $15 per coin, but today it's worth just $0.67 per coin – a pretty substantial decline. To receive their coins, Icelanders were asked to input their kennitölur, or national identification numbers. By most indications, the project never really took root. Ultimately, airdrops are an attempt to bootstrap the network effect, the phenomenon whereby a good or service gains value as more people use it. This tool of cryptocurrency organizations raises questions about the legality of and potential tax implications for coins that people have not bought or even requested.

Article Produced By
Matthew De Silva

Matthew has a passion for law and technology. He graduated from Georgetown University, where he studied international economics and music. Matthew enjoys biking and listening to tech podcasts. He lives in Los Angeles.

TP