Topic: Why do ICO's make Airdrops? - page 3. (Read 499 times)
In some cases ICOs can cancel their main public token sale and hold an airdrop instead just for legal reasons, or if they want to distribute their tokens evenly between the whole community. For instance, Ontology did an airdrop where all whitelisted members who passed KYC got a pretty large amount of tokens which could be sold for 11 ETH at the highest point.
I signed up for an ICO the other day and saw that they were giving away quite a lot of tokens for just signing up with Twitter and Telegram. How do they benefit from this? Do they just want more followers or do they want to get rid of tokens? Or is it maybe just a scam?
They have to create Airdop to distribute free coins, I know that is very little but they do so their community is crowded and more well known. Then there will be more people investing in their ICO. But that is why ICO buyers are losing money because many people get free coins at low pricesI signed up for an ICO the other day and saw that they were giving away quite a lot of tokens for just signing up with Twitter and Telegram. How do they benefit from this? Do they just want more followers or do they want to get rid of tokens? Or is it maybe just a scam?
That's just a way of quick promotion of the forum's threads, socials and telegram.
If an experienced investor sees that there was an airdrop he understands that there is ~ 20-30% of real (interested) followers in the project. Others follow because of airdrop's task.
I signed up for an ICO the other day and saw that they were giving away quite a lot of tokens for just signing up with Twitter and Telegram. How do they benefit from this? Do they just want more followers or do they want to get rid of tokens? Or is it maybe just a scam?
That's most effective and the easiest way for new projects to advertise their tokens and to attract a lot of new users. Thousands of new projects used that is proven and well-tested system. You get them for free, and when you start using coins - you become part of the system.
Companies hold airdrop campaigns in order to have a larger audience of potential investors, to spread their concept around big groups of people. It is some kind of an advertising campaign.
During the airdrop process, you promote the campaign, join the community and involve the project. It is a cheap way for ICO owners to promote their projects, since almost 1000 people join their telegram groups, share the ICO on social media etc., the only thing they lose is small amount of tokens they distribute.
it seems that it is a very good promotional method to do other than that to do that too is not that difficult and it gives big advantage to the successful ico in their altcoin sales transaction problem.
I signed up for an ICO the other day and saw that they were giving away quite a lot of tokens for just signing up with Twitter and Telegram. How do they benefit from this? Do they just want more followers or do they want to get rid of tokens? Or is it maybe just a scam?
Of course, they want many people on their telegram channel and followers to their twitter profile the more followers they've gained the more credibility they can generate in the eyes of the investors, this is, in fact, a good marketing strategy and always pays off.
Because they need more followers, if more followers accept the token.
So there's going to be a nice increase for this token.
So there's going to be a nice increase for this token.
There some certain purposes for airdrops. This is a commercial for ICO. Also, all the coins released by a startup belong not to 10 people, but to many. It always better for the coin to have many holders.
I signed up for an ICO the other day and saw that they were giving away quite a lot of tokens for just signing up with Twitter and Telegram. How do they benefit from this? Do they just want more followers or do they want to get rid of tokens? Or is it maybe just a scam?
Because the more airdrops , the more their projects will be advertised and investments will come ... I think !!
I have seen icos that gave too much airdrops to the point of having so many dumpers when their token is unlocked and being traded on DEX's. The result, the price go below ico. You have to really think about this, when you join an ICO and want to buy/contribute, you must check if they give airdrops. After that you must evaluate or ask around or DYOR if their airdrop is too good to be true and just so many.
Everything is very simple. Any project at their early launch stage needs support and building up its community, which will be loyal to it. Therefore, to give as a gift a few tokens to each member of the crypto community - this is the ideal way to attract attention and gather loyal supporters to your side. Looking back you will see that NEM blockchain (XEM) used to give free airdrop to people and now look at its success.
Airdrop is one of the bounty programs or bounty campaigns which an ICO made during their creation period. I think ICO's make an airdrop to advertise their products to the investors and bounty hunters to gain more participants and members in their community in telegram channels. to have many followers in their social media sites and to have more investors that can contribute to their success.
Often an ico makes an airdrop program because they do it so that the invetors are interested in following an ico besides it's very easy to do an airdrop.
It's the best form of marketing. ICO's need to gain momentum and spread the word about the sale/coin and airdrops with referrals attached is the best way to do this. I've seen telegram accounts go from nothing to 30000, 40000, 50000 members on airdrop campaigns alone. This then encourages investors to invest in a popular coin and can get you on the ico map. can also help with being reviewed which also grows the ico.
There is also the theory that people with a bit of coin airdropped are more likely to buy more in the future to add the the balance...or use some leftover exchange $ (remainders) to buy a coin they already have in a wallet.
Also doesn't really hurt the ico as they are giving away tokens which don't yet exist. They don't lose any money by adding a percentage of tokens to bounty / marketing.
There is also the theory that people with a bit of coin airdropped are more likely to buy more in the future to add the the balance...or use some leftover exchange $ (remainders) to buy a coin they already have in a wallet.
Also doesn't really hurt the ico as they are giving away tokens which don't yet exist. They don't lose any money by adding a percentage of tokens to bounty / marketing.
This helps them to increase the siza of community, what in turn has an influence on investor's decision.
That the token will become more popular thats the only thing why doing airdrops
it is possible to introduce their altcoin in most societies so that many are interested in following the ico in an investment, and this I often meet.
Airdrops is needed to solve two key problems faced by new crypto-currency projects:
1. ICOs need effective advertising to promote the idea to the masses.
2. In most cases, for the successful operation of the new blockchain platform, users who will keep its crypto currency, forming network nodes, are needed.
I agree to that key problem, Airdrop usually a kind of marketing strategy. ICO's not have actually an airdrops, they have offerings. It's a very important but often confused distinction. Hype and buzz are valuable commodities in the cryptocurrency world. Many people are actively looking for the next big thing. The promise of free tokens is a useful incentive that has the potential of attracting a lot of people to the project. 1. ICOs need effective advertising to promote the idea to the masses.
2. In most cases, for the successful operation of the new blockchain platform, users who will keep its crypto currency, forming network nodes, are needed.
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