A comprehensive guide on the concept of ICO Airdrop and its underpinnings!

In simple language, ICO airdrop is a procedure of distributing or allocating free tokens to existing cryptocurrency holders in the form of awards. According to an ICO development company, ICO airdrop is a marketing tool that is used to invite more people into a blockchain network. The best thing about ICO is that is an alternative way of raising funds and people from any geographic location are totally eligible to participate in an ICO (initial coin offering).

What is an ICO airdrop, and how is it executed?

A depicted earlier, an airdrop is basically a procedure of distributing tokens through the ICOs. Airdrop are best used for offering people with free fund and get them engaged by rewarding them and share company information as well. An ICO Airdrop development company facilitates planning a task beforehand, which can be the hardest part of launching an airdrop. In an airdrop, rewarding is easily done due to the fact that all addresses are public.

With an ICO airdrop, a broader target audience can be reached out easily because it serves as a part of ICO marketing strategy. In an airdrop, the coins or tokens are distributed to the entire crypto community for free and for other purposes as well. With every airdrop new token awareness is spread seamlessly which consecutively increases the number of token holders. However, to receive an ICO airdrop, one needs to subscribe to receive airdrops. In some occasions, the tokens are automatically dropped to wallets holding Ethereum.

How profitable are ICO airdrops, and what are scams associated with an airdrop?

According to a Smart contract development company, every ICO airdrop can be hugely profitable, but that is only once in a while. The tokens received from an airdrop are scarce, and it is barely worth the gas to send it to any cryptocurrency exchange. However, at times, many of the tokens received from an ICO airdrop can be worth nothing.
However, before you go for airdrops, it is best to stay aware of the scams out there. If in case you have come across any of the below-mentioned scams, then it would be best to avoid them. The scams can be listed as –

•    Private key scams
These airdrop scams are entirely fake and have no identity of itself. This type of scam comes with one motive – to trick you into giving out or revealing the private key of your wallet. In such a scam, a token airdrop participant will ask the participants to disclose their wallet’s public address. People having little or no knowledge of the functionalities of a crypto wallet do fall prey to such scams easily. To avoid this type of scam, it is best to keep safe the private key of a crypto wallet, as there is no requirement of a private key for an airdrop.

•    Dump airdrops
All types of airdrops are not entirely emphasized on building value or community. A dump airdrop comes with a goal – motivating token developers to create a short-lived token information that will lure people so that they buy it immediately once it hits crypto exchanges. However, it is quite hard to avoid such scam, but paying more attention to the project’s website and whitepaper can help to an extent.

•    Information tolling
This type of airdrop scam comes with a motive to steal personal information or data, which can help the scammers to sell it to third-parties or even use such information for phishing as well. There can be fake projects promising giveaway of free tokens, and the goal is to retrieve your email address, wallet address, social media info, and other personal information. The right way to avoid such scam, research more on the project and the whitepaper.

•    Bait and switch
This airdrop scam comes with a motive to trick you into signing you up for things which someone else is entitled for. In such scams, the referrals can be designated for other ICO airdrops, and you can be asked to sign a partnership treaty. Through this scam, the scammers generate fake referrals and could even ask for signup on a crypto exchange as well. The correct way to avoid such scam is to never participate in any airdrop asking for signing up for any extrinsic project.

When it comes to ICO airdrop, only the best innovative ways and strategies that could help your business grow and steer towards success. The blockchain experts of a Top ICO Development company in Kolkata work relentlessly in order to strengthen the initial coin offering process with rigorous market research.