Crypto Academy / Season 3 / Week 3 - Homework Post for @wahyunahrul
Source: snappa
What do you think about Airdrop in cryptocurrency?
Airdrop is an activity in which coins from a new cryptocurrency service project are sent to wallet addresses of volunteer participants, which serves as a means to create awareness to the new cryptocurrency project.
If a new start-up which is blockchain based wants to create awareness for its services and its coins, airdrop is one of the ways through which these objectives can be easily achieved.
Airdrops are very necessary especially for new crypto start-ups because it helps brings much needed awareness to the services provided by the crypto start-up. Investors are likely to get attracted through airdrop, because the crypto service provider uses this opportunity to give details of the start-up project using mediums such as white paper, which give detailed documentation of the potential of the crypto project.
Crypto start ups can also build a large community of members through airdrops. This is beneficial to the crypto start-up as it helps to increase the authenticity of the start-up project, and also helps to increase the value of the coins being distributed by the crypto start-up.
In the crazy world of crypto currency, there are thousands of start-ups and existing crypto service providers in the market and they are very competitive. Sometimes for a new crypto start-up to standout, they use airdrop as a way to differentiate their services from the rest.
How can we know about an Airdrop event so that we can participate?
We can know about an airdrop through the company's website as they promote their airdrop activity there. The thing about going through the company's website is that, we may not know before hand that a new company is promoting themselves through airdrop.
However, one of the best means of getting information about airdrop or a particular airdrop activity is by visiting coinmarketcap to get information.
Source: coinmarketcap.com
Over there you get to see a list of different new projects giving out airdrops. You have the option of choosing from different categories such as Overview, Ongoing, Upcoming Ended & Participated. When you are on the page, it is automatically on the Overview option, on it you have the ongoing and upcoming airdrops.
The Ongoing Airdrops displays the new crypto currency project doing the airdrop, the amount of people who participated in the event, the number of winners, the total airdrop amount of coins and the time the airdrop campaign is ending. You would also get to see different metrics for Upcoming Airdrops.
There are other means of getting information about airdrop for any crypto currency company. They include:
The most common and preferred means for discovering new airdrop is through coinmarketcap, because they are one of the world's largest independent cryptocurrency data aggregator with more than 6,000 different crypto assets tracked across more than 400 exchanges. So people know and trust coinmarketcap more than the other sites listed above.
Where are Airdrop events often held?
Source: binance.com
Airdrop events are often announced on crypto currency exchanges such as binance, huobi, upbit etc. On these exchanges you get to see that they support the airdrop event of any new crypto project, even as these new crypto projects are listed on the exchange.
Airdrop events are also held on coinmarketcap. Anytime a new crypto project is offering airdrop, they pass the information across through to coinmarketcap who then dispels the information to interested participants.
Because it is very difficult to be browsing through different websites to check for airdrop events, the best way is to check the exchanges and cryptocurrency data aggregators such as coinmarketcap, to see if there is any upcoming airdrop event.
Are all Airdrop events free from scams? Otherwise, how can we avoid the scam?
Certainly, all airdrop events are not free from scam. Scammers use airdrop events as a means of gaining profit for themselves. Some of the scams perpetrated by scammers using airdrop events includes:
- Theft of private keys
- Theft of individual data
- Use of referral mechanism for scam purposes
- Getting investors to buy airdropped tokens, then leaving the network after selling tokens to new investors.
We can be able to avoid these scams by doing these simple tasks below:
Know the purpose of the Project
Before participating in any airdrop event, it is of great importance to get acquainted with the crypto project and what they stand to achieve. Check if the token would be useful or not.
Know the track records of the Airdrop developer
It is also good to get an idea of the persons behind the project doing the airdrop event. You can get some facts about the developers when you get to learn about their track records. To be able to achieve this, you must be willing to do an indepth research.
Try to read all the rules given
This is another very important activity to be carried out before engaging in any airdrop event. Try to read all the rule and regulations before taking part in any airdrop event. By doing so it would help you to know before time if the airdrop is legit or a scam.
Have you ever participated in a cryptocurrency Airdrop event? If so, then explain. Meanwhile, if you have never participated but have heard of the Airdrop event, then explain it. (Show proof with screenshot)
I haven't participated in any airdrop event as of yet, but as i was doing some research concerning this exercise, i came across an airdrop event that had taken place.
Cryptodoggies
Cryptodoggies can be found in coinmarketcap, as it is one of the airdrop events that was listed in the airdrop section of coinmarketcap.
Cryptodoggies has a price share of $0.004547, a market cap of $18,532,431, a circulating supply of 4.08 billion tokens which is about 82% of its total token. All the information stated above are as at the time of writing.
Source: coinmarketcap.com
The details of the airdrop showed that 368,000 DOGGY token were given as rewards for the airdrop events, 96,090 people participated in the airdrop event, only 1,000 people that won in the airdrop event, and the airdrop event took place from May 24, 2021 through to May 29, 2021.
Details of Airdrop source: coinmarketcap.com
The method that the team of Crypto Doggies used to distribute their airdropped tokens was the Bounty method. They made prospective airdrop participants to take on some tasks which would help them win Crypto Doggies as rewards.
Bounty method source: coinmarketcap.com
Give and explain an example of an Airdrop event that has passed and the airdrop was successful. Then give one more example that has been proven to be a fraud. (It is not allowed to take the example that has been taken in question number 5).
Successful Airdrop Event
While going through some of the airdrop events that had taken place, i was lucky enough to see one airdrop evet that was successful.
Mettalex (MTLX)
Mettalex is a derivatives exchange that is decentralized and is based on a blockchain, which focuses on commodities (traditional and crypto), unique decentralized finance (DeFi) markets, and spreads that are both traditional and crypto based.
The airdrop event for Mettalex (MTLX) started on the 28th of June 2021, and ended on the 5th of July 2021. A total of 700 MTLX was airdropped to the winners of the event.
The airdrop event for Mettalex (MTLX) started on the 28th of June 2021, and ended on the 5th of July 2021. A total of 700 MTLX was airdropped to the winners of the event.
As at the time of writing, Mettalex is ranked 1131 in coinmarketcap and has a price of $3.15. It has a market cap of $3,534,021, a circulating supply of 1,123,003.12 MTLX coins and a total maximum supply of 40,000,000 coins.
Source: coinmarketcap.com
Fraudulent Airdrop Event
Over the years just as it is with human nature, as genuine airdrop event by responsible crypto projects took place, there were some fraudulent cases too.
I would be talking about one of such.
OmiseGo (OMG)
OmiseGo airdrop fraud has been recorded as one of the biggest in the history of airdrop. The said company had a plan to airdrop its token back in 2017, however decided to postpone it due to reason unknown. But before the postponement, the airdrop campaign was already popular on social media such as Twitter, Telegram and in some crypto forums. Since they did not communicate rightly with the participants of the airdrop event, scammers took advantage of the popularity that the OmiseGo airdrop event had and went ahead to create fake Twitter handles and sites with the aim of tricking unsuspecting users into giving out their private keys. It was after about 300 ethers which was valued at $56,781 had been already stolen that it became apparent that it was a scam.
Look for an example of ongoing Airdrop events, make an analysis that proves that the Airdrop of your choice is good. (Screenshot required)
For this exercise, the airdrop event i'm choosing is Zerogoki
Zerogoki (REI)
Zerogoki is platform that mints leveraged tokens which is deployed on Ethereum blockchain and it is based on an algorithmic pegging mechanism, which provides users with leveraged tools for conventional assets in fiat currency exchange, gold, and bonds. Users of the Zerogoki platform can use the tokens (REI) to cast leverage tokens or they can use the Zerogoki protocol's synthetic dollar-zUSD to buy leverage assets directly.
Source: Zerogoki
Zerogoki is the first experimental protocol from the Duet Protocol, and it is the only one to have the Lite-minting module of the Duet Protocol. This means that the synthetic assets can only be generated by destroying the protocol asset-REI, and the leverage tokens which are volatile are chosen as the listed assets in order to increase the system test pressure.
Whitepaper
The content of the white paper describes the creation and the purpose of Zerogoki. It gives information on the prelude to Zerogoki-Duet Protocol, the similarities and differences between Zerogoki and Duet, Zerogoki's internal asset category and the protocol token of Zerogoki-REI, and how it would be distributed.
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Distribution of Zerogoki Tokens
Coinmarket Metrics
Zerogoki is currently listed on coinmarket with a price of $3.25. It is ranked 2917 and has a total supply of 41.1M coins.
Zerogoki on coinmarketcap
Airdrop Event
The 3,000 REI airdrop tokens would be shared amongst 1000 winners. So far there are 137,470 participants in the Zerogoki airdrop event. The snapshot of the event would be closing in 11 hours time.
Zerogoki airdrop event
Explain the steps to participate in the Airdrop of your choice. (Screenshot required).
These are the steps i took to enable me partake in the ongoing airdrop event for Zerogoki Tokens (REI)
- Go to coinmarketcap, then click on calendar at the options above, then click on free airdrops.
- On the airdrops page, you would see a list of ongoing and upcoming events. Click on any airdrop event on the ongoing section
- Then go to right lower corner and click on login to participate.
- Do all the necessary tasks required and then click on join this airdrop.
- After you have clicked on join this airdrop the address wallet would be indicated and it would also notify you as being joined in the airdrop event
