What is Airdrop in Brief?
For those who don't know what Airdrop is, let's talk about it briefly. We can say that Airdrop is the biggest helper of projects in terms of advertising. Cryptocurrency projects promise to give their users their own cryptocurrencies in exchange for certain tasks. The logic of airdrop is simply this. It is like: Complete the tasks and earn crypto money.
While airdrops make great contributions to projects, they also become a source of additional income for airdrop hunters. Almost all cryptocurrency projects organize airdrops for crypto lovers. There are many reasons why projects organize airdrops. While organizing an airdrop sometimes produces positive results, it can sometimes cause serious problems. We can say that positive or negative results depend almost entirely on how the project conducts that airdrop.
What are the Positive Aspects of Organizing Airdrops?
Thanks to airdrops, projects can minimize advertising costs and get maximum value for their money. In other words, when a cryptocurrency project goes to a few sites for advertising purposes and pays thousands of liras, how much profit can it get from those sites? So, first of all, it is necessary to know how much of the audience of that site is related to cryptocurrencies. However, when the advertising budget is allocated to airdrops, you directly reach cryptocurrency users.
In particular, airdrop hunters closely follow the airdrops of all projects and ensure that the airdrop of that project quickly spreads to other cryptocurrency users. The project has to set up and manage airdrop very well. When we consider airdrop tasks wisely and in terms of cost-benefit, we can definitely say that the benefit will be much greater.
When Airdrop tasks include only following Twitter accounts, it will perhaps reach 100 people, but when it also adds tasks such as retweeting and tagging 3 people in a comment, it can quickly reach thousands of people. Naturally, assuming that the tasks are set well, the social media accounts and user base of the projects will increase rapidly.
As social media accounts grow, information about the projects will reach many more people. Although many users come just to earn free coins through airdrop, if the project is really useful and necessary, it can attract the attention of airdroppers and attract investment.
Additionally, since they reach a large audience quickly, they can enter many exchanges by using this audience correctly. Because when many exchanges list tokens, they occasionally conduct surveys to users and ask questions such as which cryptocurrency should we list. Projects with a growing audience can go one step ahead, come out on top in the voting, and be listed on the stock exchanges at no cost.
Since they distribute their cryptocurrencies to thousands of people via airdrop, they increase the number of holders, that is, people who keep that cryptocurrency in their wallets. This gives confidence to investors. If you ask how it provides it, let me explain it like this: There are 100 pieces of one stone. Do you think having these 100 stones in the possession of 3 people would constitute trust or in having 100 stones in them? You will be more secure if there are 100 people.
Even if 10 or even 20 people sell this stone, it will still be valuable because 80 people still hold it. However, if 3 people hold their stones and 2 of them sell their stones, the majority of the stones will become worthless as they will be lost. Therefore, airdrops further reduce the risk by spreading the projects' coins to more people. Of course, there is a bad side to this situation, and we will talk about its negative aspects.
What are the downsides of organizing an airdrop?
As we said at the beginning, there are many negative aspects of organizing an airdrop. Let's start with the one that poses the most serious problem. If the distributed cryptocurrency is already traded on stock exchanges, a serious price danger arises when thousands of dollars of cryptocurrency are distributed to thousands of people through airdrops.
Airdroppers generally aim to generate income by instantly selling the cryptocurrencies from the airdrops they participate in on the exchange. Therefore, with thousands of people making mass sales at once, the cryptocurrency may cause a serious price drop, frightening investors and causing them to make panic sales. In this case, it may cause that cryptocurrency to enter an irreversible path.
Let's talk about social media, which we mentioned on the positive side. When projects achieve significant growth in their social media accounts, their costs will also increase. For example, since airdrops take place via Telegram, the majority of projects that organize airdrops have a Telegram group. A lot of questions can come from a serious group member and it is really difficult for a single admin to keep up with them. So they have to employ additional people for Telegram groups.
Likewise, if the slightest mistakes are made to these users, that project can be quickly denigrated by the same audience. Serious work may be required to check whether people participating in airdrops fulfill their duties and to carry out operations such as distribution.
Now, let's make a general overview and briefly write down the positive and negative aspects of the project in items.
Pros of Organizing an Airdrop
1. It increases efficiency by reducing the advertising costs of projects.
2. Significantly grows the projects' social media accounts.
3. The number of holders and supporters of the cryptocurrency increases.
4. The project can reach more investors by reaching the cryptocurrency audience directly.
5. Thanks to its growing audience, it can be listed on many stock exchanges at no cost.
Downsides of Organizing an Airdrop
1. Since crypto money was distributed to thousands of people via airdrop, there was a serious price drop with the sale of thousands of people.
2. If the social media audience is growing, more employees are needed.
3. Serious work should be done in the process of organizing and completing airdrops.
4. With the constant pressure of airdroppers for free coins, investors may be alienated from that project.
In our opinion, the positive aspects of airdrop projects are definitely better than the negative aspects. Airdrops have played the biggest role in the growth of current important projects. One of the most obvious examples of these is Hydro. However, in addition to the rise of Hydro, as I mentioned on the negative side, it also experienced a serious price drop with the mass sales of airdroppers and is traded well below its initial levels. You can learn more by checking out our other articles about Airdrops.