SEC S19-W1 || Crypto Opportunities: Airdrops and Giveaways
Friends I am privileged to be here, we are still tapping our way to financial freedom by doing airdrops, I tap hamster, tapswap, w-coin and lots of them. Thanks @basil20 for inviting me, I was still working on this before now and it has taken me days
A cryptocurrency airdrop is a strategy blockchain-based project adapted to distribute tokens to a large number of addresses for free, a little contribution is made to end this token not by Investments, the contribution here could be logging in daily to claim your token and sharing the project with friends who would also participate, the aim of cryptocurrency airdrops are enormous and are commensally beneficial.
By the distribution of this token, their project will gain engagements, thereby ranking them better in a competitive crypto market
Airdrops can entice users and investors as well, while they explore the space and seem to find the projects interesting.
Airdrops can be used by different projects to gain incentives like social media channel engagement (followers, likes, comments etc)
Cryptocurrencies distributed through airdrops
In 2018, cryptocurrencies like Tron(Trx), binance coin(BNB), Stellar(XLM) as well as the steem currency was distributed through airdrops
Though airdrops and giveaways have a primary aim which is the promotion of crypto projects, there is a clear difference between the two.
Airdrops involve the distribution of free tokens to a large number of addresses, certain rules are being given but this could mainly be so that the token distribution would be successful and its process is automated.
A giveaway is a form of token distribution organized by crypto influencer exchanges like Binance this distribution requires the completion of certain tasks like following and liking posts on social media.
For Steem, I would say a giveaway is currently running on the Steem blockchain because you can't get the Steem token if you are not contributing to the space by participating in context by participating in a Contest where the Steem currency is acquired without investments.
For developers;
| Advantages | Disadvantages |
|---|---|
| It increases awareness as the Airdrop continues on the space, for steem it raises awareness as content creators keep on engaging | Airdrop distribution is costly as it requires so much from project developers to keep the distributions on |
| Platform building: for the Steem token rewarding content creators helps in building an active community around the stimulate platform | Token dumping may be seen if a large number of recipients of the Steem token decide to sell their token at once after distribution and this will lead to token market value deppreciation |
For Participants;
| Advantages | Disadvantages |
|---|---|
| Participants receive free tokens without investing with their finances | Participants may be at risk of high taxes which may be more substantial than a token received investing in this can lead to loss |
| Early birds have higher chances of having high returns, I looked through my Binance account and I saw a time 1 steem=$8, beneficiary that had 100,000 steems tokens at that time their benefit will be massive | Volatility; if holders of the steam token at 2018 had not sold out they token at that time they would have been filled with so much regret because steam doesn't amount to 0.5 dollars this time |
Security and regulatory challenges
Scam and fishy attack; Fake airdrops could be created to steal personal information and create engagement on social media portfolios for personal interest. Education on legit project tracking and verification before participating could help avoid scan and fishy attacks
Smart contract vulnerability; Airdrops that use smart contracts are susceptible to attacks and it can lead to potential fund loss.
For regulatory challenges
Tax implication; exchanges can implement a varying tax and the consequences of this implementation are on both the participants and the project this could be managed by reporting the value of the airdrop to reduce taxes implemented
KYC and AML requirements; Airdrops and giveaways must comply with anti-money laundering and know your customer regulations to prevent fishy activities, to manage this challenge KYC procedures should be implemented to verify a user's identity.
- Eligibility criteria
This airdrop is strictly for new users who have signed up and completed the basic KYC process and for active users of the Steemit platform with a minimum account age of 6 weeks and a minimum of 30 posts/comments COMBINED. The referrer and referee are eligible for this airdrop if the above criteria are met.
- Participant action
Complete account verification through KYC for new users through an achievement post and an updated profile information that tallies with the post
Publish at least three posts during the airdrop period with an achievement post inclusive
Follow Steemit's official social media handles with the username @steemit on Twitter, Facebook, Instagram and Youtube
Refer at least one user who will complete the above-listed task.
- Airdrop distribution mechanism
Automatically verify eligibility based on predefined criteria
The token will be distributed to eligible participants as airdrop elapses
- Security measures
Implement a secure KYC process to verify users, ensuring that one user doesn't attempt airdrop twice during the airdrop process.
All data collected from participants should be protected
- Promotional strategies
Social media campaign; launch targeted campaigns through top social media like Twitter, Facebook, Instagram and Telegram ads could be created to increase visibility
Influencer partnership; collaborate with top influencers with verification batch and a high number of followers to reach a broader audience and increase credibility from users and investors
Exchanges advertisements; collaborate with exchanges to run on their portfolios
- Execution time
Prelaunch phase week 1: Finalize all criteria and security measures, begin promotional activity and set up KYC infrastructure with educational PDFs
Launch phase: Open airdrop for participation, monitor engagement on social media platforms, fix technical issues and provide participant support.
Post-launch Phase: Verify participants' eligibility and distribution via the provided smart contract address, analyze the success of the airdrop through engagement rates and social media platform reach, and collect feedback/reactions from participants to improve the project in the future.
I would love to invite @khursheedanwar, @kouba01, @edgargonzalez and @bossj23 to join in this contest
X promotion link
https://twitter.com/nsijoro/status/1812213949674168516?t=QgN6xzlrePVwkvlmEMmiTw&s=19
Thank you, friend!
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Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
Sometime we may get good project token at free in early stage in Airdrop. Nice post.
That is right sir
. I appreciate how you highlighted the benefits and challenges especially with the Steem token. It's great to see how these strategies can promote crypto projects and engage users.
Yes you are right brother by implanting the KYC verification we can keep the malicious actors frauds and hackers away from stealing the sensitive information about the participants of a specific crypto project in the form of an airdrop and a giveaway. This is because it provides an extra layer of security and Privacy. By the way your article is very well written and thank you so much for sharing with us. I wish you very good luck 🤞
Thanks for your valuable comment on my post, thanks for appreciating my pattern of writing
You are always welcome dear friend 💞 just keep sharing high quality posts with us have a great day 😊
Thanks dear friend
Upvoted! Thank you for supporting witness @jswit.
Heyyy broo,..... Great seeing you participating in this contest (Engagement Challenge) which comes with a very interesting topic for the week..
It's no more that we have seen that the new schemes are tapping our ways to financial freedom!👍😊... Although, these all became serious since the time we all saw that the first telegram mini app tap to earn game cooked very well after being listed on multiple exchanges on May 16th 2024. There are many games that are now available which includes; tapswap, hamster Kombat, catizen, w-coin, yescoin, pixelverse, Memefi and many more ...... Will these projects turn out to be good and rewarding airdrops just like NOTCOIN??? The answer is for us to wait and see, because most of them are getting launched and listed in the Q3 of 2024!
If there should be an airdrop using the Steem token, It'll be very massive. And your plan gives a nice approach and step to take it on.
Airdrops and giveaways are gradually taking over the cryptocurrency world and I'll say that it hasn't been this way before not until 2024. We hope for the best though....
Thanks for sharing and writing this great piece...
GoodLuck
You are right on the aspect of airdrop taking over the cryptocurrency world because we are likely going to experience more project being launched through airdrops as time goes on
The big question of whether this token is going to be launched is what I cannot clearly give sure answer, because for me I haven't done much research on this project knowing their aim.
If you read my work carefully on the area of disadvantaged, you will see that this token may actually launch but not a good rate in other to reduce the risk of failed distribution
I am glad you stopped by, Thank you so much
Greetings @nsijori
How are you? You said right that these projects are in tranding nowadays and people are getting so much interest in airdrops. For preventing from scammers KYC is so important. There are many advantages and disadvantages for both project holders and for participants. Last you proposed an airdrop in which you beautifuly described all aspects, how you run this project.
Overall nice post, looking forward to your success. Thanks
Yeah I proposed an airdrop project but the fund generation aspect on my end as the project owner could be a major problem.