Why Airdrops Might Be the Next Big Thing for Cryptocurrency

A lot of governments are trying to regulate or censor cryptocurrency but closing doors on them only leads to new and innovative pathways to get around these obstacles. In fact, people can fly over these obstacles and drop them out of the sky – an airdrop.

Airdrops are free cryptocurrencies and tokens waiting to be claimed. As part of their initiative to spread the word, blockchain companies and startups have set aside a portion of their crypto-assets to do several of those –basically free coins for the taking.

 

Airdrops as an Effective Marketing Tool

Businesses use different strategies to get customers, but there is one particular method which always seems to make an impact regardless of the industry they’re in. Giving something valuable for free would almost always elicit a positive response from potential customers.

In the context of blockchain businesses, an airdrop is the equivalent of giving away product samples or gift cards to encourage buyers and users to take the next step. It might be as simple as coming back to learn more about the cryptocurrency or ICO (creating traffic to the website) or spreading the news about an airdrop. If the project seemed very promising, they might choose to join the ICO or buy more tokens to qualify for upcoming airdrops.

Airdrops have already been used for quite some time to raise awareness about a blockchain project or startup. They’re becoming more widespread as blockchain businesses move away from online and social media advertising and adopt censorship-free promotions. People can get information about airdrops from airdrop hosting sites like Airdropalert.com, Airdrops.io, ICOdrops.com, and forum sites like Bitcointalk.

 

Airdrops Target Specific Users

Despite recent advances in A.I., paid advertising is essentially a hit-and-miss strategy. Airdrops increase the likelihood of user engagement because they only target specific users. People who come to airdrop hosting sites might have learned about them through word-of-mouth, or they might have stumbled upon airdrops out of their own curiosity.

The target audience are most likely users with some experience dealing with cryptocurrencies. They’ll have their own Bitcoin, Ethereum, or wallets that support multiple currencies, and have already used them for quite some time. The other part are newcomers who wants to learn more about cryptocurrencies and get some free coins.

The chance of having successful adoption for every airdropped cryptocurrency or token is a lot better than if they were spent on paid advertisements which are a lot more expensive and don’t guarantee success. Think of it in terms of how Costco built their business. They didn’t (and still don’t) spend a lot of money on commercials or advertising. This ensures they keep their prices competitive with other large bulk discount stores. Instead, they use free samples of cheese, condiments, salad dressing etc as an incentive to increase sales and transactions in the store. Essentially airdrops allow crypto companies to become the next Costco.

 

How Airdrops Work

Airdrops use a different cryptocurrency or token (usually Bitcoin, Ethereum, or ERC20 tokens like EOS) as giveaways to promote their own. Blockchain startups and ICOs rarely publish airdrops on Google or Facebook, if at all. They’re usually listed in airdrop hosting sites where users can check the status of the airdrop and provide links to these sites.

There are basically three ways to airdrop.

Taking snapshots of the blockchain. Blockchain projects will set a date for taking snapshots of the blockchain. If you happened to make a Bitcoin or Ethereum transaction during the snapshot, you might soon find some free cryptocurrencies or tokens sitting in your wallet. In most cases, people are aware about the airdrop and learned them through airdrop hosting sites.

Requiring users to sign up for the airdrop. Some airdrops will require information about the recipients, especially their wallet addresses, emails, telegram, or twitter accounts. It’s basically a marketing strategy to get more users onboard and start a community. Unfortunately, not all airdrops are real or have value; some are used as a ploy to get information from users. Steer clear from airdrops asking for sensitive personal information or private keys.

During a hard fork. Blockchain projects can create free coins by forking an already existing blockchain. They usually have a community working on a blockchain project based on the original. Users get an equivalent amount of “free coins” depending on how much they own prior to the fork. They’ll get free cryptocurrencies tradable for fiat every time the blockchain forks. Bitcoin has had three forks since 2017: Bitcoin Cash, Bitcoin Gold, and Bitcoin Private.

Some airdrops will incorporate a referral system where users get additional coins free for every successful invite. Others require users to have a specific amount of cryptocurrencies or tokens to become eligible for the airdrop. Dapps which are set to launch on the EOS blockchain once EOS migrates from the Ethereum blockchain will give away tokens based on the amount of EOS tokens users have.

 

Conclusion

Cryptocurrency companies will always have a plethora of ways to market and promote themselves. But whatever strategy a company chooses, airdrops should like be included in that strategy, especially with the constant updates to advertising rules on Facebook and Google.  In fact, online and social media advertising might no longer be a huge traffic driver even if these companies choose to lift the restrictions on cryptocurrency. Try as they may, there seems to be no limit on the number of ways cryptocurrency communities can innovate and stay censorship-free.

Gone Hunting – How Bounty Hunters Are Pushing Borders for Cryptocurrency

Bounty hunters conjure up images of the Wild West where people search for outlaws to get rewards. (Blame Hollywood for that.) In a decentralized world of cryptocurrencies, bounties are given to anyone who fulfils a given task or solve a particular problem, not with cash but with cryptocurrencies and tokens.

So why talk about bounties when people could just get them through mining contracts or buying from exchanges? We’ll look at the implications of bounty hunting for cryptocurrency and why this could help solve specific problems the industry is currently facing.

 

Bounty Systems in the Cryptocurrency Space

Cryptocurrency goes beyond cashless, decentralized peer-to-peer payment systems by adding a new sector of the cryptocurrency economy. Primarily a mining industry, it quickly grew to include trading, investing, blockchain startups, ICOs, and now, a system of rewarding people for offering their work to the community.

With the arrival of bounty systems in the cryptocurrency space, we might well be seeing a revival of interest in rebuilding a decentralized economy. Bounty hunting invites everyone to participate without spending a dime on expensive mining equipment, or putting investor’s money on the line. All it takes is a range of skills in online marketing, coding, and a little bit of “hunting.”

Bounty hunting programs come in many forms. The most popular ones include signature campaigns, content creation, social media likes and/or posts, debugging, and coding. There are even bounties for tracking down hackers, fraudsters, and cyber-criminals; almost like a bounty hunter in a real sense.

 

 

Building Stronger Communities with Bounties

More people are taking interests in bounty hunting as barriers to entry in the crypto-space become more challenging during the past few months (crackdown on ICOs, mining farms, and cryptocurrency exchanges). Bounty systems provide a clever solution to get around excessive prohibitions and create an environment which could benefit all members of the community using their own resources.

Development teams and startups have benefitted a lot from bounty hunting programs. It accelerated the process of building new applications for blockchain and raising awareness about cryptocurrency by outsourcing some of the best talents in the cryptocurrency community. In return “hunters” are given cryptocurrencies like Bitcoin, Ethereum, or ICO tokens as bounties.

ICOs have saved a lot on marketing campaigns by using their own tokens as rewards. Bancor (BNT), and Iconomi (ICN), are just a few examples of successful ICOs that used bounty system as part of their marketing strategy. Some bounties were also offered for bug fixes. Status (SNT), had been giving away $1 million worth of tokens to anyone who can submit potential solutions to bugs in their software.

 

 

Bounty Hunters Reshaping the Online Industry

Global freelancing sites were among the first to “decentralize” the jobs market, allowing both sides to find the right people for the job, and the most rewarding work aside from the usual 9-5 jobs. Competitive industries such as online marketing, advertising, and software development come to these sites to fill the gaps in their workforce or hire additional personnel on a shoestring budget.

Bounty hunting sites might well become the future of decentralized freelancing for blockchain businesses. Bitcointalk.org, Bounty0x.io are among the few sites which offer bounty hunting programs for tasks like:

 

  • Signature Campaign
  • Content Creation
  • Social Media Posts/Tweets
  • Coding and Debugging Software
  • Translating into Different Languages

 

Majority of bounty hunting programs aims at increasing people’s awareness about a new blockchain project and cryptocurrencies as a whole. Cryptocurrency is pretty much uncharted territory as a niche topic for most content creators. Hence, competition for writers and YouTube creators in the cryptocurrency industry may not be as tough as popular ones. Likewise, bounty hunting can also be an alternative source of income for coders with some background in distributed systems. Finally, people can work as translators for their ICO company’s whitepaper, any cryptocurrency for that matter.

For blockchain companies who bank on Google and Facebook for advertising, this seems to be the best, if not the only recourse, to circumvent their decision to ban cryptocurrency-related advertising on their platforms. But this might only be just the beginning, and cryptocurrency community could come up with more creative ways to grow without them. (Hint: the Internet, by design, is a decentralized network and has no single point of failure).

On the bright side of things, blockchain companies won’t be spending much on paid Google and Facebook ads. Instead, they can allocate their resources as bounties to spread the word about cryptocurrency or about a new startup company.

 

Some Potential Drawbacks to Keep in Mind

Bounty systems are also a potential for misuse, especially ICOs and promoters of cryptocurrencies who might use them for their pump-and-dump schemes. Bounty hunters might not realize they had a hand in spreading FOMO on an ICO or worthless cryptocurrency until it’s too late.

Bounty hunters might also end up with nothing after spending hours fulfilling the bounty task, or their tokens turn out to have very little value after the ICO. Not all bounty hunting programs are legit or turn out as expected. We still have to do our research and due diligence to have a high chance of success.

 

Conclusion

Bounty hunting as a two-way process helps build our cryptocurrency community. It calls on everyone, from every part of the world to participate in a global effort to bring cryptocurrency and blockchain technology into perfection. By doing so, we’re also sharing with everyone the very thing that runs our cryptocurrency economy.

How to Spot a Cryptocurrency Scam

Whenever you see red flags, it’s best to stay away and not get involved. How do you detect so-called red flags? Most often than not, it’s a gut feeling that something is not right or something is off. That’s all great, you might say, but what if you don’t have very good intuition. If that’s the case we’ve put together a list of signs you can watch out for. 

Exaggerated claims or guaranteed payouts. Unfortunately, there’s no such thing as a “guaranteed” payout in most kinds of investments. There’s always the risk of losing. In fact, out of every 10 trades, only one or two of them turn out to be winners. Some investors do get lucky, but they account for less than 1% of the population. To put into perspective, if someone assures you of winning the lottery, you’re pretty sure the game is rigged or the person is a scammer.

Nonexistent businesses or fake photos of their premises. Investment scams are easily caught when doing a fact-check on their base of operations and business offices – you won’t find any. That alone tells you they don’t want to be found by people asking for their money when the scam blows up.

A lot of unverified facts and/or shady past:. Doing a fact-check on these people behind the scams can also raise a red flag. It’s either they don’t exist or they have a previous history of scamming other people and being involved in one of their elaborate displays of opulence and extravaganzas. Remember their names and steer clear from anything that has to do with them.

You see a lot of complaints when you Google search. Scammers are cleverer these days, using the word “scam” as one of their SEO keywords to trick people into clicking these links to know if they really are. Instead, they end up going to one of their landing pages or paid reviews and articles promoting their company or explaining why they are not a scam. This might not always be true with all companies and cryptocurrencies that has the word “scam” in search suggestions, but suffice to say, scammers are using this tactic to get people involved.

Tech-savvy investors can turn the tables on these scammers by using the same tool they trick people with – the Internet. Research and cryptocurrency education are your best allies to thrive in today’s technology-driven world.

That said, we’ll end this blog post with a cryptocurrency investment “hall of shame.” These are companies that have unfortunately scammed people of their money and disappear with the profits.

The Hall of Shame

Gladiacoin – founded in November 26, 2016, this ponzi scheme promised to double Bitcoin in 90 days, which include 2.2% payout dividend. It folded on June 2017 with investors losing millions of dollars. Gladiacoin can no longer be reached in their now-defunct website https://www.gladiacoin.com/. Their coin was never listed in Coinmarketcap.

Onecoin a ponzi scheme which promoted a cryptocurrency with a “private blockchain” and run by people who have been previously involved in these shady investment scams. Authorities began shutting down Onecoin’s offshore offices in 2017 and have people arrested and filed appropriate charges to perpetrators, including the CEO.

Bitconnect generally regarded as a pump-and-dump and ponzi scheme for its high-yield investment program. It reached an all-time high when it was listed as one of the top 20 cryptocurrencies in Coinmarketcap at $460 apiece, and folded in January 2018 at only $5.92. Thousands have lost their savings, retirements, and are now in huge debts for buying cryptocurrencies which is now a little more (or less) than a dollar. It is now ranked 554 in Coinmarketcap at $0.9 apiece.