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Topic: Ayrdrops cost billions, but the success rate is very low (Read 103 times)

member
Activity: 224
Merit: 10
If there is not a good exchange, then these airdrop tokens are worthless.
So that's why I'm not willing to join the airdrop.
member
Activity: 434
Merit: 10
Not always like that. Sometimes airdrops gives from 100 to 300 $... Its easy to apply and everything is very simple. KYC now but its ok - few steps and id
full member
Activity: 392
Merit: 105
No exchange is just a symbolic price! Bounty programs often add value to attract attention for the purpose of the show! Be sure to review and check before deciding to participate!
member
Activity: 219
Merit: 11
Free tokens, which at one time were distributed by some successful projects, now cost more than $ 4 billion. But the percentage of successful eyrrdrops is very low: without active use, tokens become practically useless. Nevertheless, eyrdrops can develop as an alternative method of raising funds, allowing you to bypass the laws on securities.

The popularity of eyrdrops is growing, as they serve as an alternative or complement to the ICO, which recently have been under the scrutiny of regulators. The goal of Eyrdrops is not to raise funds, as in the case of the ICO, but to distribute free tokens among the participants who would later use them, and thus increase the community.

In blockages based on the Proof-of-Work algorithm, the distribution of new coins is always carried out through mining. But the blocking system without mining should have an alternative system for distributing tokens. All the tokens on the etherium are with the premarin, so most projects attract funds through ICO: investors buy them, counting on future usefulness.

Ayrdrops allow developers to distribute free tokens among a certain group of people. Sometimes they decide to distribute tokens to the owners of existing crypto-currencies, such as bitcoin or ether, and sometimes they choose users who fulfill certain conditions.

In the case of eyrdrops for bitcoin holders, developers take a snapshot of the block at a certain point in time, and then users must sign a transaction that proves that they do have private keys. For example, Stellar and Byteball distributed their tokens to the owners of the bitcoins. The founder of Byteball, Anton Churyumov, said that he decided to conduct an airdrop out of marketing considerations in order to "attract more users and ask them to test the product."

OmiseGo, which raised $ 20 million of venture financing and another $ 25 million during the ICO, distributed 5% of the tokens among all those who at that time in the wallet had more than 0.1 ETH. But the risk of providing tokens to existing holders of bitcoin and ether is that the new asset will reflect the existing distribution of BTC and ETH, where the market largely depends on speculators.

Another type of eyrdrop is the distribution of tokens to anyone who fulfills certain conditions. Nano initially distributed his tokens for free through a crane, which closed in October last year. Creator Nano Colin Le Makhie said that, having considered other methods of distribution, he stopped at the crane system because of a fair and uniform primary distribution, and also wanting to attract people who knew nothing about crypto-currencies.

Unlike ICO, eyrdrops are best suited for tokens that already have a working use case. With free distribution of tokens to early users, the cost of the project is determined by this artificially launched network effect. Ayrdrop projects can be successful only when there is a strong base product: otherwise the tokens will be sold and will not retain their value.

The incentive to keep such tokens in most cases no. And this is noticeable, since more than 300 eyrdrops took place in the last two years, and today only 3% of them have a capitalization of more than $ 100 million.

If the token already has a working platform, its value is likely to be less speculative. The distribution of tokens does not violate securities laws and shifts responsibility to regulators to the stock exchanges. It is technically possible to use eyrdrops as a means of collecting funds to circumvent the securities laws when the company transfers some part of the tokens and stores the rest for themselves. If the base token becomes valuable in the market, then the company will be able to begin selling the part that it saved for development.

The startups, trying to get out of the regulators' mind, did not open America, and the Securities and Exchange Commission (SEC) is already familiar with similar tricks on the example of the dotcom bubble. A similar method of eyrdrop, but for stocks, tried to use it back in 1999. As a result, the SEC intervened and stopped "free shares". Thanks to these methods, issuers received value, creating a growing public market for their shares, expanding business and increasing traffic on their websites, and in two cases they even managed to provoke interest in potential IPOs.

Coinbase released a statement in early March that said that although eyrdrops can help develop innovation and improve digital currencies, it will not support every eyrdrop, because the safe organization of such a process is technically difficult and time-consuming. So, Eyldrop Stellar was supported by the Kraken exchange, and not by Coinbase.

Source coinspot.io
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