This article helps you to know more about what airdrop marketing is, how it works, what are its types, and how it helps crypto businesses.
What Is Crypto Airdrop Marketing?
A Crypto airdrop is a marketing strategy to promote or introduce a newly developed blockchain-based project to the investors The potential users who participate in the airdrop marketing will get the native coins or tokens for free Before users claim the free coins, they have to complete some promotional activities like following and sharing the posts related to the project or product on social media and inviting new users
How Does a Crypto Airdrop Work?
The crypto airdrop is an effective promotional activity or process of transferring free digital assets from the crypto project to the user’s crypto wallet addresses The crypto company assigns tasks to the users like creating brand awareness, following the social media pages of the project, promoting interest among users about the project, and attracting more investors The users who complete the task successfully will get the free tokens and it will be more beneficial for both the investors and traders The issuing company gets more benefits as the demand for the crypto project increase with efficient marketing efforts from the airdrop users The users also benefit as they get free coins, which can provide massive profits at zero capital, and the value of the free asset will surge over time or suddenly It is a win-win situation for both recipients and issuing company
Different Types of Airdrop Marketing
Airdrops are one of the influential strategies in attracting new users and retaining existing users in blockchain projects. Different coins and NFTs can become more familiar to investors by implementing NFT airdrop marketing. Here are the different types of airdrop marketing campaigns, each with some unique characteristics.
1. Standard Airdrops
Any crypto company that wants to promote the new project and create awareness among investors can make use of the standard crypto airdrop strategy. It is the most common airdrop promotion to introduce a new crypto coin or NFT project to grow the community and raise the brand identity. People who want to participate in the airdrop crypto promotion just need to provide a valid digital wallet address and no need for any other additional details. In this type of campaign, the project determines the number of tokens to distribute among the users. This means the task needs to complete within time to get the free tokens. Even though, a standard airdrop is a simple and easy method, the distribution of free tokens takes place through a draw to distribute it fairly.
2. Bounty Airdrop
In a bounty crypto airdrop, the users need to complete the tasks to gain the free coins. In this airdrop, the users require to sign up for a newspaper, follow the project’s social media pages and posts, share the project contents on social media, and actively present on social media platforms. The individuals may also get the finder’s fees for recruiting other new users. This airdrop demands the users to earn certain points to qualify for the free coins. It requires some effort to earn the free tokens. Most crypto projects opt for this method for its optimum result.
3. Holder Airdrop
The holder airdrop focuses on the existing crypto users who already hold a certain amount of crypto coins or tokens. This is because the wallets and the distribution of tokens are transparent to all the users in the blockchain. The amount is set by the snapshot of the crypto wallet. The amount received by the users is purely based on the amount of NFTs or coins in the user’s crypto wallet. Mostly, the users who already hold the coins don’t possess any interest in the airdrop.
4. Exclusive Airdrop
Exclusive airdrops are only for people who are specifically selected based on their extended history with the project. The recipients of this airdrop may be active community members of the project who have been supporting the crypto project since the beginning. The exclusive airdrop may also reward the users who spent more money on non-token activity and an earlier supporter who posts many contents on social media forums. The cryptos are sent to the designated wallets of users who are close to the project and may not hold any tokens in the wallets.
5. Hard Fork Airdrop
When the protocol code of a coin or token changes, then a new token is created in the new version of the blockchain. The existing coins held by the users will be replaced with an equal amount of new coins or tokens in their wallets. When the hard fork happens, the chain splits which results in creating a new blockchain version based on the original coin.
Advantages of Airdrop Marketing
Airdrop marketing for NFTs and coins help to gain more fame for the crypto projects. Here are some of the advantages of the crypto airdrop.
1. Create More Hype for the Crypto Project
Airdrop marketing helps to capture more awareness or recognition of investors towards the crypto project. After a successful airdrop, the market value of the newly developed NFTs or coins starts to upsurge. Airdrops are the perfect marketing strategy to build and grow the brand image among the crypto community.
2. Control the Token Distribution
Airdrop helps to distribute the crypto assets among the users it helps to create some hype about the project. The project should plan the supply of the crypto assets in a way that is more beneficial for the project. It gives a massive advantage when more users hold the assets of the project, which creates more demand and helps in the rise of the token value.
3. Develops a Database for Valuable Leads
Airdrops help the crypto company to get additional information about the investors. If the value of their token increases, then it attracts more attention from additional investors. You can take advantage of the investor’s information and reward them with free tokens to promote your project in their specific groups. It allows you to build credibility and reputation among the users and increases sales.
4. Reward Devoted Users
Rewarding loyal investors will always help the crypto company to build more trust in the community. The gained investors will spread good words among the community about the project will help them gain more sales.
How to Find Trusted Airdrops
Users should always do their own research before opting for any airdrops, especially when you incorporate your wallet with any website. There might be chances of taking over your tokens or coins from your wallet. Make sure to check the official website of the project. Regarding crypto companies, airdrops are the best way to make their project more familiar among investors. The projects can also consider choosing airdrop crypto promotion services to promote their services or products among the community. This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
