Meaning Of Airdrop in the Cryptocurrency World
Digital currency developers are trying a new tack for marketing and encouraging mass adoption:
" Airdropping" free cryptocurrencies into people's accounts.
" In certain ways people are getting free lottery tickets", said Matthew Roszak.
Here are few reasons more digital coin developers are pursuing Airdrops:
- Promotion
They are using the Airdrop method to promote new projects insteaf of " spending money on Billboards and T-shirts".
In order to implement an Airdrop, the maker of a new coin can look up and offer all of the holders of one cryptocurrency, such as Ethereum, a chance to receive the up-and-coming token for Free.
- Mass Adoption
" Slipping money into someone's pocket is a powerful way to get their attention", said Spencer Bogart, partner at San Francisco Blockchain Capital.
Despite growing interest in digital coins, adoption remains a fraction of the population. Airdrops try to address this issue.
- Price
Developers may also have an incentive to use Airdrops as a way to drive up the price for an existing coin. The demand for that cryptocurrency could go up as investors buy it just to be a part of an upcoming airdrop.
There will be a Tsunami of Airdrops this year said Matthew Roszak.