The Tech Quiz - Season 13
Hello amazing steemians friends how are you all doing today I hope all is well and you all are enjoying your day, today I will be taking part in the tech quiz contest organize by @malikusman1 here in the Steem4bloggers community.
What Are Crypto Airdrops?
A cryptocurrency airdrop can be described as unsolicited distribution of crypto tokens or coins which is always for free to various wallet address for the purpose of creating a general awareness about the existence of such token on the blockchain.
In crypto business the use of airdrops is a marketing stunt which involves sending crypto assets to various crypto wallets for the purpose of creating awareness of such virtual currency
Did You Receive Any Crypto Airdrops?
Throughout my journey on the blockchain I have never for once received a crypto airdrop in my wallet neither have I ever witnessed it dropping in some other person's accounts before
Cryptocurrency airdrop has been a myth to me because I have been hearing of it on social media platforms but never for once have I ever witnessed it talkless of receiving it in my wallet.
Pros And Cons Of The Crypto Airdrops
Below are some of the pros as well as the cons of crypto airdrop, and they are;
Pros
- Airdrops serves as a means of encouragement to investors to contribute more on the project
- Airdrops serves as a means of rewarding new users
- Airdrops serves as an opportunity to receive free crypto
Cons
- Users who receive airdrops may immediately turn around and sell them
- Airdrops may attract individuals who are only interested in receiving free crypto thus cause Misaligned incentives:
- Airdrops may attract hackers which may seize the opportunity in scamming investors
Conclusion
Like the say even in free town nothing is free and as long as airdrops is concerned it is a marketing strategy which at the end turns out to favour the owners of such projects.
This will be the end of my entry and I will like to invite
@solaymann
@artist1111
@khursheedanwar
Your analysis of crypto airdrops reveals what they are used for, and problems develop. That is interesting to listen your(r) views on their role in the world of crypto. Although you have no actual image of the air drops, your observations on their impact and prospects as risks are valuable food for thought to other users. Cheers to the tech quiz contest.
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