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What do I need to participate?
To get these airdrops you usually have to do small tasks like joining a Telegram chatgroup or following their Twitter account but only until the end the airdrop. After you received the tokens you can leave the channels. In most cases it is a so-called ERC20 tokens, a cryptocurrency based on the Ethereum platform. Therefore it is necessary that you have at least one Ethereum wallet address.
And these free tokens have value?
Yes! You might think just because you get these tokens for free they are not worth it. However, these tokens are usually distributed before the sale in order to carry out marketing, as already mentioned. As a rule, a maximum of 1% of all tokens are made available for an airdrop. The rest is still for sale. Thus also the free tokens have a value.
Why do companies give away free cryptocurrencies?
Marketing! In order for a cryptocurrency to be useful and worth something it has to be used by people and this is hard to achieve. With giving away free tokens you can get a network effect going. It’s an easy way to build a large community because everyone loves free tokens. Another purpose of this is to draw people’s attention to the project. Whenever they scroll through CoinMarketCap or see the logo of the free coin elsewhere they know it. This will eventually even buy them tokens, since the project appeals to them.
It’s a win-win situation: On one hand, you get free tokens. And on the other hand, blockchain companies raise awareness for their projects.
What is a crypto airdrop?
Airdrop is another term for free cryptocurrencies. These free cryptocurrencies (also called coins or tokens) are distributed by new projects. These are their own and new coins. Therefore, it’s verly unlikely you get bitcoins or ethereum in these airdrops. You’ll receive POLY, OMG, DBYTE or however they call their tokens. We actually also don’t know most of the tokens because they give them away only for early adopter before they even sell them, which leads us to the next topic: