Airdrop: Investors Could Take Advantage of Free Coins as Airdrop Trend Takes Hold
Blockchain and digital currency startups are discovering a new way to gain momentum with their enterprises and affiliated coins. Using an airdrop is a new trend for a constantly innovating industry and can mean that interested parties receive free coins at, or after, the fundraising stage of a startup. Once the coins become publicly traded they can accumulate value just like any other token or coin.
Using a token airdrop developed as an expansion of, and alternative, to Initial Coin Offerings (ICOs). ICOs developed from the concept of crowdfunding, they are often a mix of private and public “token” sales. Tokens are purchased by investors who can use them to acquire the product or service of the initiating seller as their technology is developed or held and traded as the “token” becomes a listed digital currency.
Private coin sales are raising so much that coins can be given free to consumers
Venture capitalists and professional investors are investing so much money into fintech startups that some just don’t need the additional funds a public ICO sale can bring. Many of the first token airdrops gave tokens to social media followers, email subscribers, and interested parties without condition.
Chinese firm Omchain, for example, is building their Ontology network and token (ONT), funding a blockchain that can be applied by businesses with no prior blockchain or distributed network knowledge. It raised the required funds through a private round of funding and didn’t need to conduct a public sale. Ontology went on to give 1,000 ONT tokens to interested parties who were early signups to an email newsletter. The tokens became available publicly in March and are already worth over $1 USD.
Massachusetts Institute of Technology-based Eximchain has already raised $20 million USD to fund its smart contract blockchain for supply chain stakeholders. Eximchain is now planning a token airdrop of 1.5 million EXC tokens, which can be further converted for use on its blockchain when it launches.
Canadian token airdrops
STK Global Payments is raising funds to enable real-time digital currency payments at points of sale, aiming their first launch in Canada in 2018. STK closed its “Token Generation Event”, or ICO, after reaching its hard-cap target of $17 million USD early. STK has decided to airdrop the remaining tokens to social media subscribers who had followed STK prior to December 29th, 2017.
Singapore and Toronto-based Rublix is developing the “Hedge” platform for trading predictions, analysis and education. Rublix has already awarded tokens in a recent airdrop and plans further drops as the platform is developed. Once the platform goes live financial traders of all kinds will be able to post trading predictions via a smart contract powered, blockchain based, “Blueprint”.
Hedge users will be able to purchase Blueprints using the Rublix and Hedge token RBLX. If the trader’s prediction, or Blueprint, is correct the trader will receive the payment of RBLX.
Latest token airdrop seeks action for reward
Rublix is not the only platform looking to reward users in digital coins. Current is developing a media streaming platform.
While in development Current is rewarding those who connect socially, share certain social posts, and follow a set of criteria that ultimately will extend Current’s marketing reach. Once the platform goes live, Current users will be rewarded for their time spent, advertisement impressions, and personal data they share. Rewards will be in CRNC, the token of the Current platform.
Though token airdrops are designed predominantly to entice early users to a new platform and aid marketing efforts, they also create an opportunity for investors to obtain coins which could in theory gain in value and become tradeable or an asset to HODL, or ‘hold onto’, as the market grows.
Investors should be as equally wary of token airdrops as they are of ICOs. Token airdrops don’t require a financial investment, but may see users sharing data, digital currency wallet addresses, and endorsing the issuer.
Image credit: Pixabay
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