We are seeing a nice correction in EOS but it is still down significantly from the high. Crypto is still trying to recover from the recent downtrend in the market and I would like to take a little time to explore why I think EOS will be one of the best performers in crypto. One of the reasons behind this is going to be airdrops. For those of you who don't know what those are let me catch you up to speed really quick.

Airdrops

In crypto airdrops are used to distribute coins or tokens. In order for a project to be successful you want it in as many hands as possible. With most blockchains you can see the balances and wallet address of the users. Your Identify is still hidden but this info is public knowledge on most blockchains so people can use that info to give you free tokens or coins. Airdrops have been growing in popularity in recent times. A lot of new projects are offering airdrops to people after raising the money they need in private initial coin offerings (ICOs) and then skipping the public sale for an airdrop. They might have you join a Telegram group and complete some tasks to get your free tokens. Some projects like OmiseGO distributed a certain amount of tokens to anyone holding more than 0.10 ETH in their Ethereum wallet. Airdrops can also be thought of as similar to crypto forks. The most famous for being the bitcoin cash fork of the bitcoin blockchain back in August. If you were holding Bitcoin in a wallet where you controlled the private key or on an exchange that supported the fork then you received 1 bitcoin cash for every bitcoin you have. It was a 1:1 ratio distribution. So if you just had 0.10 BTC than you got 0.10 BCH. Airdrops have been growing in popularity.

Google search trends for airdrops

Forks and airdrops have been big drivers of the crypto markets in the recent months. Ethereum Classic, ZClassic and Monero are all coins that have seen spikes in price after the announcement of forks or airdrops. People seem to get very excited about coins when they find out they can get other free coins just from holding them. If you are not aware of it EOS is going to have an airdrop for IQ tokens for the project. Everipedia is a Wikipedia competitor and they plan on doing an airdrop for all EOS holders in June. Galaxy Digital funded Everipedia development with 30 million dollars. So since they have already funded the project there will be no ICO. The tokens will just be given to EOS holders.

So what does this all mean for EOS?

Block.one has already announced that they will be using the 1 billion plus that they have raised to help fund development on the EOS blockchain. They have also partnered up with some big names like Mike Novogratz's Galaxy Digital and Eric Schmidt’s TomorrowBlockchain. So while it has not been officially stated as far as I know but it looks very much like we will see others follow in the path of Everipedia's airdrop. It would make perfect sense for this to be a distribution model widely adopted by EOS projects.

This is beneficial for several reasons:

1. block.one owns 10% of EOS tokens so they will get 10% of airdrops.
2. It brings well known VC's into the vetting process.
3. It helps to reduce the selling pressure of EOS tokens.
4. Creates another reason to hold EOS and not just dump after getting free tokens.
5. Helps build a better community around EOS with great projects.

As you can see there will be so many reasons for this to be the adopted method of token distribution. EOS already has many great things about it but this right here is the kind of stuff that really can help build an even stronger community around such an already powerful project. It helps drives development and success of the chain. These are some major reasons to hold onto EOS tokens because this project has so many amazing things going for it. Ethereum has just become a platform to launch ICOs but once EOS launches we will be able to see so many scalable blockchain applications that actually can be used. These are very exciting times and I look forward to all the amazing projects that the community will be building and growing together.