“How easy is it to give away free money? Actually, quite difficult!”
An article by Peter Hengst
In the crypto space there is a common term that involves expanding wallet holders and overall token transfers. It is called an “Airdrop.” An airdrop is a way for a new cryptocurrency company to give out their tokens to people in an attempt to gain traction in the industry and showcase their popularity and legitimacy on the blockchain. Imagine if the government wanted to try out a new form of money. In order to get as many people involved as possible, they would have to have a large quantity of people who owned some of this currency or it would always remain unknown. For that to happen, they would either have to pass a ton of it out for free to the general public or demand everyone to switch to the new currency with force. This is essentially what many new crypto firms are attempting as we speak. They are attempting to get a strong following for their digital currency in order for enough people to collectively agree that it has value. Since even the leaders of the crypto space have no authority to force a new currency onto the general population, the only alternative is a free airdrop.
Airdrops are a great way to stimulate growth and also create a “buzz” about your new cryptocurrency. Alternatively, they can sound too good to be true for a lot of people and then they will label you as scam. Once enough individuals have decided that you are a scam, it can be very difficult to come back from. The problem is that with our current society we have a lack of trust in our fellow peers. How can someone be willing to give away something for free that they believe will be worth money? Why would they knowingly pass it out like Halloween candy if it holds value in their mind? The true reason a person would be willing to distribute some of their tokens to the masses for free is because they believe in their token and want to remain completely transparent about their project. If they have nothing to hide, then they are willing to spread around the wealth and knowledge of their company in order to get more people involved. If it were a scam, then it wouldn’t be free. Nobody in history has gained anything from a scam by literally giving people free stuff.
The initial airdrop is a tough hump to get over. Since nobody knows anything about you or your token, then it seems unreasonable for them to trust a single word you say. After you are able to get a few people to accept your offer for free tokens, they will be able to prove to their peers that the airdrop is real. Once confirmed real, it will be a snowball affect and more and more people will be interested in receiving the airdrop. If you plan on conducting an airdrop for your token, it is wise to have an outlet for people to ask questions or get assistance with their wallet creation. Telegram, FB, IG, Discord, Medium, Twitter, and Reddit are great forums for this type of outlet. Trying to launch a token without a place for people to communicate with you directly will seem very suspicious to most people. Accountability is the key focus for managing a token launch and the best way to do that is remaining available to anyone in need of information.
What does all this mean? Is a free airdrop the way to go for expanding the reach of token holders in the early stages of a token launch? Absolutely it is. The single fastest way to get more people involved in your project is to give them a piece of the project for free. Just be sure to include a link to your website with available information about the utility behind your token. List any available data publicly so that it is obvious that you are not trying to hide anything. Be sure to include, in detail, every aspect of your business with a road map to your goals that shows a timeline to reach each one. Additionally, have a meet the team web page so that everybody who has helped you create your business is accounted for and can be proven to be real people. The public prefers to see a face and a profile for the people involved in a project. This allows them to decide if the team is capable of making a real cryptocurrency successful based on their education backgrounds and work history.
Given my own personal experience with conducting an airdrop, I was able to conclude that it is a fantastic opportunity for a new cryptocurrency project to expand their influence rapidly. This does not mean that there won’t be hurdles. The key will be to avoid getting discouraged by every obnoxious person claiming online that you are a scammer or rug-pull. Instead, keep your head up and be confident in your project’s legitimacy and potential growth. If you truly believe that you have a special and unique token, then nothing should stop you from achieving success.