Topic: ICOs vs. Airdrops (Read 341 times)

Very helpful information to everyone who's new on this cryptoworld like me. Thumbs up for you thanks.

very informative thread for newbies. thank you very much

Hi Guys, What do you think of the Pools before ICOs? https://discord.gg/FHKZGGX

Very good post, I enjoyed reading it.  Keep up the good work.

Very informative. I give you credit for that. but technically speaking, ICOs and Airdrops are not in isolation that requires a choice. You actually have to invest in an ICO to be a part of those who got first hand on the token by any means of payment deemed legit to the project team. Failure to participate in ICOs does not impede you from getting an airdrop.BTC

ICO are good for high returns but all ICO are not good. some of the investor invest high price but due to market crash they loose there money. Many of airdrop gives very small amount of token which not worth even transaction price. so join the airdrop but don't expect too much profit from airdrop. also beware of scam. because too many peoples are trying steal your info or money.   

Thanks for this!

Thanks for helpful information 

You can participate by making payment as per the requirement of ICO. Most of the ICOs accept ETH or BTC. You will need to send it from the wallet for which you have the private keys. Don't transfer it from the exchanges like bittrex, poloniex, etc. You won't receive the coins after your purchase.

how can i participate with ICO? thanks!

Thanks for sharing such an informative post. It will really be helpful to newbies to understand ICO and Airdrop.

Though, I feel that the title could be little misleading as ICO and Airdrops aren't opposing entities. Both have their own significance and offerings.

very creative thinking and constructive post i should give A+ to the creator

Thanks merit me

Thanks

Sorry only just seen your response.  Thanks for all the detail, it all makes sense and just helps me realise how much I've got to learn.  I've found one ICO I like, I've invested a small portion of my cash (not sure of the correct term, I'm used to calling it a bankroll) into the presale, I'm getting involved with their Telegram channel and making some tokens through their bounty scheme.  I thought the best way to learn was to see one in action and see how it plays out, see whether my instincts for a a good ICO can be trusted.  Thanks again for the help.

Great article! Very informative. For a project it's good to have a mix of both imo.

Sorry, sir, you are wrong.

Officially, "Airdrop" is the term used for the distribution of coins by way of hard fork. Most people misuse the term, particularly cryptocurrency/token developers issuing bounty campaigns and/or giveaways to generate hype about their ICO.

"Airdrop" sounds sexy, which is why it's being misused. And then Newbies like you take the misuse of that term and spread it around as fact. It's not your fault, I guess, it's the fault of the ICO developers that are misusing the term.

Here's a source to educate all of you: https://steemit.com/bitcoin/@bitcoinflood/icos-are-out-airdrops-are-in

And I'll quote one of the first sentences from my source:

Welcome to crypto! It's a fun place to be. Once a coin is distributed, one of the goals of the development team is to get the coin listed on exchanges. The team's effectiveness in getting the coin listed can vary a lot based on the community support behind the project. Often, to get a coin listed, an exchange requires a certain amount of upvotes before a coin is listed. The coin will generally be listed on small, obscure exchanges at first. As trading volume increases and the project details become more concrete, the coin might get listed on larger and larger exchanges. A coin will not be listed on exchanges that exchange into fiat until the coin has obtained widespread adoption and trust within the community as a legitimate and important project. The reason for this is the fiat exchanges act as the regulatory gatekeepers for crypto and try their best to work within existing legal frameworks. Smaller exchanges often operate in legal gray areas. Notably, when coins are listed on big exchanges for the first time (binance, OKEX, Coinbase, etc.), you'll often see a huge spike in price.

The coin's price can vary between exchanges, especially for new coins. Coin price is a function of how thin/thick the order book is (how many orders are being placed for substantial amounts). A thin order book can drive the price up or down quickly as market orders fail to be met because the price is either too high or low. As order books get thicker (like Bitcoin), the price volatility will steadily decrease as the market becomes more liquid and better able to meet demand.

Because coin prices are based off order book thickness and trading volatility, the price for a crypto asset can fluctuate between exchanges (arbitrage opportunities) because the crypto markets are not nearly as efficient as other currently available capital markets. As a result, pricing a new asset can be difficult. This is where Coinmarketcap.com comes in. Coinmarketcap.com (and other similar services) aggregate trading prices and order volumes among all exchanges which list any given crypto asset. The Coinmarketcap algorithm then does internal calculations and spits out the aggregate price for the token (although the price on coinmarketcap is not necessarily the price on any given exchange).  

Thanks for that, really useful.  I am only a week into this and I'm still trying to understand how things work.  Once the ICO completes and the coin/token is minted, I assume it will then go on an exchange, how is the price of the coin set and by who?

Happy it helps, keep researching and you'll be okay. There's a lot to learn in this space but you have plenty of time to learn it.

Thank you!