Crypto Academy / Season 3 / Week 3 / Beginners : Airdrop - Giveaway In Cryptocurrency. Assignment for Prof @wahyunahrul
Thank you Prof @wahyunahrul for this beautiful lecture on Airdrop, here is my entry.
Question 1
What do you think about Airdrop in cryptocurrency?
Airdrop is a mechanism for awarding people or communities with crypto currency for participating in the airdrop event freely. Airdrop have become very popular since 2017 as lots of projects use this mechanism as a means of rewarding loyal holders or to encourage adoption. This helps to place value on a token as recipients may begin to trade their tokens. They're normally used by start-ups to boost their cryptocurrency projects.
When an airdrop takes place, certain amount of cryptocurrencies are airdropped to wallet holders of their target members. In some cases a recipient is required to hold a particular token or a certain balance in order to be qualified to receive the airdrop. In other cases they maybe required to carry out small tasks such as posting about the project on social media, follow certain accounts, referrals etc. Most crypto enthusiast love airdrops because they are free money. Their value could increase or surge suddenly providing profit.
In general I think airdrop is healthy for the crypto market if used wisely. I believe it is a two sides of the same coin. It has its advantages and disadvantages. In as much as it helps in creating adoption and boosting the value of a coin if abused it can lead to a centralized monopoly and can as well encourage pump and dump.
Question 2
How can we know about an Airdrop event so that we can participate?
Reading or Researching about it
Prof @wahyunahrul gave a clear example of how he got to know about an airdrop which he participated by reading about it on UPbit Indonesia. This is a good way of knowing about an airdrop.
Promotion Campaign
Prior to an airdrop event some cryptocurrencies carry out promotion campaign to enlighten people on their airdrop. News of an upcoming airdrop is usually posted on certain websites and shared across social media platforms by accounts with large numbers of followers.
Referral from Friends
One can get to know or participate in an airdrop if he/she is referred by his/her friend. This referral scheme is common among crypto projects that makes use of bounty airdrops. So when one is referred he knows about the airdrop and can then participate in it.
Question 3
Where are airdrop events often held?
Airdrops can be held or hosted in websites
This requires registration through the airdrop project website providing their email address and name. At intervals updates about the airdrop will be communicated to the participants. Members of that site will be entitled to participate in that airdrop that is specific to that community.
Airdrops can also be held in exchanges
In these exchanges recipients may be required to hold a certain amount of a particular coin to be eligible.
Airdrops can also be held on social media
platforms like telegram, discord etc. In social media platforms like Telegram airdrop bot may issue certain instructions or task to be followed after which the recipient is asked to input his or her wallet address.
Question 4
Are all Airdrop events free from scams? Otherwise, how can we avoid the scams?
Not all Airdrop events are free from scams, as a matter of fact some airdrops are fake, designed to steal ones data or gain access to ones wallet. Thus to avoid these scams the following precautions ought to be taken:
1 Never pay for an airdrop
2 Never share your private key
3 Create a new dedicated email address that you only use for airdrops
4 Never give your private email address or one connected to your Binance or other exchange.
5 Avoid KYC airdrops if it seems fishy as personal information about yourself may fall into the hands of scammers.
Question 5
Have you ever participated in an Airdrop event? If so, then explain. Meanwhile if you have never participated but have heard of the Airdrop event, then explain it.
I have never participated in an airdrop event but during my research I discovered an airdrop on coinmarket cap. The token being airdropped was the Zerogoki Token(REI).
It is a leveraged token minting platform deployed on Ethereum and based on an algorithmic pegging mechanism, which can provide users with leverage tools for traditional assets such as foreign exchange, gold and bonds etc.This coin is ranked 3146 on coinmarket cap. It has a maximum supply of 41,142,633 REI with its current value sitting at $3.54. reference
To participate in this airdrop participants must carry out the tasks as shown in the picture below. This Token makes use of the Bounty Airdrop, at the end participants are required to input their Ethereum Wallet address.
In this airdrop 120524 participated and 3000REI was awarded to 1000 people.
Question 6
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?
Successful Airdrop
In coinmarket cap I discovered an airdrop that has ended and was successful. Baby Shark is a BEP-20 deployed on the Binance Smart Chain Contract.
Every Baby Shark transaction accrues a fee of 8% that benefits all holders where 3% is redistributed amongst all owners of Baby Shark, the other 3% is locked away into the liquidity pool and 2% is added to the charity well. It has a supply of 780,000,000,000,000 Shark Coins. It is ranked 3270 on coinmarket cap The Baby Shark Airdrop started on 4th of July, 2021 and ended on 14th of July, 2021 with 4.7T Shark distributed to 2000 people. Reference
A Fraudulent Airdrop
The Stellar Gold Token my friend participated in. He was asked to pay 0.01ethereum to receive the coin. He was sent 100,000,000,000 billion fake Stellar Gold Token worth nothing. Besides airdrop are free and not to be paid for. Images from Trust wallet
Question 7
Look for an example of an ongoing Airdrop Event, make an analysis that proves that the Airdrop of your choice is good?
About the Project
The Bird Finance (HECO) is an ongoing
Airdrop Event on coinmarketcap.
This Coin has a supply of 10,000,000,000 Bird Coin. It is a cross chain revenue aggregation protocol with extreme deflation which helps users find safe,stable and high yield projects in the blockchain word, develop diversified mining strategies with compound interest and realize asset appreciation. Reference
Airdrop
Researching further I discovered the airdrops transactions that has already taken place, looking at this image we can see the recipients wallet addresses as well the airdrop received and the wallet address from which they were sent.
In this airdrop 172,186 participants
recorded, 1000 people have been awarded and
12million coins distributed.
Question 8
Explain the steps to participate in the Airdrop of your choice?
Bird Finance (HECO) used the Bounty Airdrop Mechanism where certain tasks are to be completed.
Thus the following conditions are to be satisfied:
1 Add Bird Finance to watchlist
2 Join coinmarket cap announcement Telegram Channel
3 Join Bird Finance Global Telegram Channel
4 Follow @coinmarktet cap Twitter Account
5 Follow @bird-aggregator Twitter Account
6 Retweet the Post
After these conditions are satisfied the participants can click join airdrop.
Conclusion
Airdrops have become essential in the crpto space or ecosystem It has promoted and bossted a lot of cryptocurrencies. Airdrop is vital especially for new projects who are struggling to go mainstream. Airdrops can be carried out in different ways each with its own requirements which participants must meet. In as much as Airdrop is healthy for the Crypto Community, its use should not be abused as this will cast doubt upon people's mind. The importance of Airdrop cannot be overemphasized. Before engaging in airdrops we must ensure we are not falling victims to scammers.