SEC-S19/W1 | Crypto Opportunities : Airdrops and Giveaways

Hello everyone how are you doing I am good today I am here to take part in another engagement challenge where I have to explore my knowledge about the SEC-S19/W1 | Crypto Opportunities : Airdrops and Giveaways, I will try to explain it up to my best level.

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Explain what a cryptocurrency airdrop is and what its main objectives are. Give examples of projects that have used airdrops.

A well structured strategy of marketing where users have chance to get free tokens from ceypto airdrops. The main aim is to wider introductions of the project and urge more users towards adoption through proper marketing.

If we see in more details the airdrops may serve many roles in crypto ecosystem as its useful to reach more people and there is no as such cost for marketing is required. Hence the users who are loyal can get more rewards as they adopted it early and passively it leads to sense of wider engagement in the community.

The benefits of free airdrops are clear as the users may get chance to get free airdrops, which can be later on useful for trading and get benefits. Furthermore as the engagement increased there is more chance of visibility and higher revel of circulation of airdrops. These steps are helpful in ceypto community and project may got success in short time period.

Now we will see how is the working of crypto airdrop work?

The mechanics of crypto airdrops consists of defined process of

• Announcement
• Registration
• Verification
• Distribution
• Claiming tokens

In the first step the announcement is done by project holders with the help of social media and also by using different forums like official website, crypto forums and also through emails.

Obviously the users who fulfilled the criteria needs to get registered by wallet address and further requirements. Moreover according to requirements of projects sometimes users should have hold certain amount of cryptocurrency in wallet.

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After registered the process of verifications is done according to eligibility criteria, the verification is completed the free airdrops are distributed among ursers.

The process is little bit simple as the transfer of token is free from project wallet to users wallets
However sometimes there is need of claiming the token by follow6 few rules provided by the project holder.

Few examples of free airdrops are as follow.

• Stellar lumens project which has awarded millions frew tokens to the users jyst to raised the publicity of project.

• Similarly, in Celo project, the users may got chance to earned free tokens by referral friends and also by sharing posts on different desired social media platforms.

• Flare network, its quite simple the one shouod have to follow the social media account and got a chance to win flare network free tokens.

What is the difference between an airdrop and a giveaway in the field of cryptocurrencies? Explain with concrete examples, including similar initiatives with the Steem token.

As I have explained in above question the crypto airdrops involved in giving a certain number of free tokens to the users, although it had sometimes criteria of having a certain amount of crypto assets in wallet which is the requirements of free token.

The main criteria include to meet the eligibility requirements set by project, hence users may got free token token automatically in wallet, in return the users has to take part in promotions activities of the said project's it leads to increased promotion.

For example in case of steem token, users may got a specific amount of steem power who meet the criteria of keeping certain amount of steam in their wallet.

Such as users holding 50 steem in his wallet may got the chance of getting 5 steem power based on staking and also based on activities with the platforms.

It resultant improved engagement in community by putting its effect by hold and stake steem.

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what is giveaway?

In this process reward are given on the basis of promotional activities in which tokens are given on the basis of completing desired targets. Although in this case more active response of uers is required in teem of engagement not only with new users but also with olders one's.

The main elements which are consider in give away include the completing the said tasks either on social media platforms, through referral or sharing the contents. Its applicable for all users either he is new or older on platforms.

For example such as steemit may have giveaway for the users so consistently writing equality post and publish with the help of specific tags, obviously the post with unique higher quality contents may have more chance of winning and also on the basis if engagement in the community too.

Such as few communities announce the steem token of 5 or 6 based on the engagement in the contest or in community if I do it definitely I got the wining chance of 5 or 6 steem tokens.

So it can be summarize as follow the airdrops dirstribut rewards on the basis of meeting criteria, promotion and adopt it and there is no active users response requires.

While in giveaway it works on vice versa complete the desired tasks by being active in community sharing unique content and more windwe interaction with the ecosystem is basically required.

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What are the advantages and disadvantages of airdrops for project developers and participants? Use cases involving the Steem token if possible.

Here I will discuss few advantages of airdrops.

1: Wider level of awareness For airdrops promoted where you are on different social media apps and platform obviously they are would be more wider range of awareness among the users in the more people can get retention.

For example in case of steemit Platform if airdrops are given to the new users after signing up or is there any promotional activity it definitely it will urge and attract more new uses towards the steemit platform.

2: Build up a stronger community Obviously airdrop s free give away is the primary given to the users which are loyal and definitely it create a stronger community with of the loyal people.

Example if the steam power is given to the users which are active on steemit platform through their content writing and the used loyal engagement definitely they have more edge over the other users in building community more stable.

3:Urge of staking As free airdrops are often given a specific number of free tokens to the user which hold a certain amount of steem tokens in their wallet, definitely it leads to reduce selling pressure and more stability of system.

For example the award of steem tokens to the the participants who hold a certain amount of steem token for a time period.

Here are few disadvantages of free airdrops.

Disadvantages

1: Cost In appropriate planning of free airdrops obviously it required cost for effective execution and marketing.

For example on steemit platform the process of verification of users for eligibility obviously needed resources for accomplish.

2:Less engagement retention As airdrops didn't require much engagement or activities of the users.

The effect is highly visible as if uerse are not active and didn't do engagement the activities of airdrop trying to build a stable active community would be weakened and abolished.

3: Market selling pressure if the users sold steem token all at once it tend to increased sold pressure and the there is marked decreased in Steem price.

For example if more users tends to sold it exerts negative impression in the market.

4: ScamAs there is always danger of being scam or faud chance by bit service and also multiple account used by users.

5: Tax awareness When users got free airdrops there are tax and users must aware of all these unwanted taxation law.

What are the security and regulatory challenges related to cryptocurrency airdrops and giveaways? How can these challenges be managed?

As in airdrops there is always danger of being exploited by scammer and fraudulent either it leads to steal of personal information. Moreover users must keep himself update about the scam and could handle them.

It can be managed only by checking the official website of announced projects so that its legtimaticy may be verified. Hence users must work on secure platform in order to avail free airdrops.

Hence as we well aware there is use of not and fake multiple accounts and they misleading the higher coverage of said campaign.

it can be managed by implication of using CAPTCHA system which is effective in stopped automatic entry to proceed.

The users have knowledge of know your customer and also beware about the anti money laundering procedures so that he might be able to valid identify needed for the verification.

In order to overcome these issues the users may have knowledge to filter malware activities with the help of alogarithm.

The data stealing and misleading is quite obvious in free airdrops if we could not secure it very properly.

In order to managed it we need to used proper encrypted method which enabled secure of personal information.

Furthermore sometimes shared of free airdrops is being exploited by big whales which definitely manipulate the share.

In order to cope with this issue users needed to set the limit of tokens.

Regulatory Challenges

The airdrops needed few strategy the most profound is to deal with know your customer and also anti money laundering to prevent any misleading act to be happened.

Few tokens might encounter the issues of security in order to handle this issue users needed to comply with local laws. To cope this issue he beware of strong know your customer and also anti money laundering protocol hence it would robust the verification and idebtifc of the user.

As there is tax implication on the free token and users may aware of these kind of tax system become becoming part of free token rewards.

Propose a detailed plan to organize an airdrop using the Steem token. The plan should include eligibility criteria, required participant actions, implemented safety measures, and promotional strategies to maximize impact.

Eligibility criteria required participant action some safety measures and promotional strategy this is a very interesting question and every one should have better understanding of it who should clearly fall in this category.

Eligibility criteria

So the main important thing to do is verification then user must undergo the verification process.

After that the user must be involved in active posting and posting regularly and unplegrised content and most importantly should have a good amount of steem power.

And to maintain the ecosystem of the steemit plateform users must do regularly power up to maintain the ecosystem.

And now a days I think it is mandatory that there should be good engagement this not just to stay active but also in a way posting commenting is to up regulate in the other user and should have better environment.

Content must be plegiarism free and AI free. And along with that must share your post on your social media accounts like treasure Instagram etc.

Safety measures we can say the participants data should be secured.

Like we have seen many incidents some fake accounts also exist on the platform and we must avoid that and also upvote the other user and along with that wisely should take decision regarding as a selling of the airdrops and should not involve the scammers or fake ID.

So there are ways you can promote for example by engagement and why putting the post on your social media apps and we have a lot of social media app like Twitter most commonly then we use Instagram Facebook.

And most of the community is already doing tweets or share the post on the social media app and also stay updated regarding airdrop.

Another most exciting thing is that you can also promoters via your friends who are on famous pages like Facebook pages or were very good bloggers on YouTube these are also good source of promoting strategies if you are willing to do.

You can also make videos or graphic or blog to promote the Airdrops.

Its all about my today's post.

I would like to invite my friend @m-fdo, @ashkhan and @jannat12 to take part in the chllenge.