Airdrop FAQ / Pros and cons.

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Hello guys! It's your fav author on this again. Welcome back to this space. Trust me am happy to have you back here. I hope you enjoyed my last post on Airdrop...have you considered participating in the ongoing Airdrops around you? Anyways it your decision to make. Am only here to help you make an informed one.

Yeah! I thought about going even much deeper today by attempting to give answer to Frequently Asked questions on Airdrop (FAQ) and then see how I can also round it up with pros and cons. I believe you would find this post interesting. Let's get into it guys!

FAQ on Airdrops

• What are Airdrops

Airdrop is a viable strategy employed by crypto company or project where they distribute free coin or token to their community members to increase visibility, create massive awareness, increase circulating supply and even stimulate trade.

Basically, for new and upcoming project, airdrop is a strategy to create awareness and build a strong community base of supporter who should help the project succeed with their goals.

All you need do is to perform certain trivial tasks such as joining their telegram channel, following them on X, tweeting and retweeting and basically promoting them on social media. You can see that all these do not involve initial capital on the part of the participant.

• Why are crypto projects giving away coins for free?

Project gives out this free coin or token basically for awareness and visibility...and for mutual drive and support. Giving this free token would lure more investors into buying the vision of the project. Many would not have heard of the project on a good day if an airdrop was not organized.

Now the idea is this the more people gain access to this token the more it begins to get a favourable consideration in the sight of people and in turn begins to become something valuable because participants would begin to push for it success.

• How do I claim airdrops?

Claiming an airdrop varies from one project to another. It's not completely generic but the fact is, it can be claimed especially when everything expected of you have been done including supplying the wallet address where the free coin will be dropped.

Some project would specifically ask you to download certain kind of wallet and ensure you have done the needful before the free token or coin can drop.

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• Why didn’t I receive my airdrop?

This is a very important question. Not receiving airdrop could be as a result of many reasons which ranges from not completing the steps or processes for eligibility, not including some important details, or when there is an issue with your social handle such as telegram where the airdrop process was initiated.

Some users might have unavoidably exited the airdrop telegram channel or even deleted their tweet and shares about the project...all of these is enough to disqualify a participant. So do well to ensure you follow the steps, avoid deleting anything about the project on your social handle and try as much as possible to stay in the telegram channel.

• Are all Airdrop Legit?

Sadly, the answer is not. While airdrop seems to be a very good and viable strategy for project looking to become visible and create a very strong community base, there are some others who are looking to use Airdrops to scam unsuspecting folks out there. Some of the airdrop out there always turn out to be fake and a huge scam.

Pros of Airdrop

• Brand Awareness: It attract investors and prospective investors into the project as more and more people begins to align with the project as they become aware of it. This is actually a win for the project, because they have successfully won for themselves folks that would in turn helps the project succeed.

• Reduced Advertisement cost: The airdrop process is designed in such a way that folks who get into it also do an homework of bringing in other folks into it by means of referrals and shares on their social media handles. So the project developers do not get to invest hugely into adverts and promotions. What's a cheap way to get people on board.

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• Profit making: it always a win win situation for both the project developers and the participants/investors but my focus here is on the investors as they get to earn free token at no cost. They do not need to commit themselves financially before they earn from airdrop.

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Cons of Airdrop

There are so many disadvantages attached to participating in Airdrop. Airdrop sometimes are unpredictable, some do not even end up succeeding and by then you would have wasted time and resources. This is actually on the part of participants/investors.

Airdrop could also be used by malicious players in the crypto space to scam unsuspecting investors. They could even demand for initial financial commitments which is not consistent with the procedure for airdrop. Some might even go as far as sending pishing links just to hack into users storage and wallets.

Most successful project also struggles after the distribution of an airdrops that has gained value . The free token received by these participants are dumped as soon as they are gotten by those who qualify, leaving the token or coin almost worthless. It then takes a lot of effort to get the token stabilized.

Bottom Line

I hope I have been able to answer some of your questions around airdrop and by now I also believe you have a basic understanding of the pros and cons of Airdrop. Well you can always dig deeper into this topic. There are hundreds of resources online. Meanwhile there are ongoing airdrops you can be part of...at no cost.

I want to believe you've gotten so much from this piece. As my usual custom is, I would always encourage that you DYOR to be sure of every financial step you would want to take as I won't be liable for any form of loss encountered by you.

Feel free to share with me your thoughts in the comment section. Thanks for your time once again. Gracias!

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^{Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.}

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Regards
@lhorgic♥️

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