Elesho Eric Ogbonyemi
The current economic situation of the country has left a lot of citizens in extremely difficult times, living paycheck to paycheck or hand to mouth. However, you may describe it. We can all agree that these are truly trying times. Such times call for desperate measures, which has made many youths seek refuge in airdrops.
No. I do not mean aviation airdrops, which strictly has to do with cargo delivery and emergency supplies or personnel by parachute from a flying airplane. What I have in mind here is Cryptocurrency airdrops. These are a strategic marketing tool that blockchain protocols and teams use to distribute tokens or digital assets to eligible users. Airdrops aim to boost protocol activity, raise awareness, and enhance community engagement.
Airdrops gained popularity among Nigerian youths earlier this year when Ice network was listed in January. It gained extra popularity after the listing of Notcoin back in May. Notcoin airdrop was straightforward and logged into the Notcoin website on telegram and tap on the logo. The number of taps equalled the number of points a person earned.
Cryptocurrency Airdrops are strategies used by Crypto platforms to create awareness about a new cryptocurrency. The process involves the distribution of tokens to a group of users who have met certain requirements. Such requirements depend on the type of Airdrop the Cryptocurrency is adopting.
Types of cryptocurrency Airdrops.
Here are some of the types of Airdrops we have.
Bounty Airdrops
Standard Airdrops
Holders Airdrop
Exclusive Airdrops
Raffle Airdrops
Bounty Airdrops:
This is the most common type of Airdrop among Nigerian youths as the tasks are straightforward enough. These tasks most times entail raising awareness of an incoming Airdrop by following all the company social media accounts, tweeting and retweeting, posting, commenting, and liking posts made by the company on social media. Bonuses are also given for referrals, signing up for the news letters of the company or joining the company’s discords groups.
A few companies require that you earn a certain amount of points before you qualify to claim the airdrop. To claim points, users have to perform daily tasks, such as interacting on a post, retweeting, performing ton transactions, daily logins, etc. A few examples of bounty Airdrops are Blum, Apes of BTC, Tomarket, Dogs, Notcoin, etc.
Standard Airdrops:
These kinds of Airdrops are relatively simpler than bounty Airdrops. Here, the individuals show their interest in the airdrop. They provide valid wallet addresses and sometimes additional information aside from the wallet address.
In standard Airdrops, there is usually a set amount of the token that the company is willing to distribute and a limit as to how many people can get them. Airdrops of this nature are very simple to participate in but aren’t really Nigerian youths’ favorite primarily because the amount they receive is based on how much the company is willing to give, not based on a series of tasks performed.
Holders Airdrops:
Airdrops of this nature occur based on individuals who are holding existing tokens. Holders Airdrops ensure that only individuals holding large amounts of the tokens get the Airdrops. This makes it the least popular among the youths of Nigeria.
Dynamics of airdrops:
Airdrops generally begin when the company decides that there is a need for an Airdrop. It might be a marketing strategy used by the company to create awareness of the upcoming cryptocurrency. The company then has to select the type of airdrop it wants to be, either holding, bounty, or standard, and who is eligible.
The next stage is to get a public campaign going. This includes collecting information such as social media handles, email addresses, and a valid wallet address. In most Airdrops, the information collected is limited to just valid wallet addresses. Other Airdrops might opt for snapshots. A perfect example is tomarket Airdrop.
Snapshots are used to identify users who possess certain criteria. For example, which individual has gotten to 20,000 points. Token prices unusually experience high volatility when the Snapshots are taken. Snapshots can be done as many times as the company wants. New data or transactions after a snapshot doesn’t count for the Airdrop. At the end of the airdrop, individuals who participated will receive the coins or tokens directly.
Advantages and disadvantages of cryptocurrency Airdrops:
Given the economic crisis faced by many Nigerians. It provides an extra source of income for youths. Youths who need capital to start trading either forex or cryptocurrency or youth who just need the extra cash to take care of one expense or the other. It can also be a life changer for those who are disciplined. A few weeks back, a Nigerian woman won about $3000 from memefi Spin to win Airdrop. It simply goes to show how much money can be made from just participating in Airdrops deligently.
Just like any online business, it has its advantages and disadvantages.
One of the major disadvantages of Airdrops is uncertainty. In other words, “how safe is the network being used?” The way Airdrops are redeemed raises a few eyebrows. Some Airdrops make it mandatory that users must connect their wallet to shady websites, and once this is done, the scammers now have access to the user’s secret keys or password. This is a big risk in a world plagued by Yahoo boys and other Internet frauds.
Also, some Airdrops lack liquidity. They might literally be worthless if they can’t be traded on an exchange. Some Airdrops claim to have values worth thousands of dollars. The truth, however, remains that without the ability to openly trade the token once it’s Airdropped, the free money might end up being nothing.
Here are a few Airdrops that could be of promising value
Blum
Major
Timefarm
Apes of BTC
TonXDao
Want to go for Airdrops? Caution is the word.
Elesho, a student of statistics, writes from the University of Ilorin.
