SEC S19-W1 || Crypto Opportunities: Airdrops and Giveaways

Welcome steemit family to my post. I am @drcrypto1 from #pakistan and hopefully that you all will be fine with the blessings of Almighty Allah. I'm here today for participating in the SEC-S19W1 in SteemitCryptoAcademy. The topic is very interesting titled as "Crypto Opportunities: Airdrops and Giveaways". So get started;

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In the field of cryptocurrency, the Airdrops and Giveways have attracted the attention of people so much especially those who took very interest in cryptocurrency and are earning their passive or active income through this field. Airdrops and Giveways have long been employed in this field and give us practical earning opportunities by involving in social tasks issued by different projects. These projects have different aims like attracting people's attention to new launch token, increasing the number of token holders or making their token stable before launching. Let's have a breif look at both Airdrops and Giveways:

What is Airdrop?

We can say that airdrop is a marketing strategy of a specific token employed for liquidation of token, for making it's price stability and for having mass token holders. These Airdrops are shared for free in the user's wellet addresses when they complete all the tasks for a specific time. Most of the Airdrops have a bot and are connected to telegram in which users do social tasks and in the return they are given the token in the form of airdrop, it's popular example is ton Airdrops.

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What are Giveways?

Giveway, on the other hand, is a campaign run on specific crypto app like I have seen many campaigns on binance and on bybit. These campaigns are run by these apps or specific communities in which participants have to do some activities including social tasks. In giveways users are asked to do deposit and trade a certain ammount of USDT. After finishing time of campaign they are given rewards in the form of giveway and for example I thinl we can see BNB which are given in the form of vouchers.

Already we have discussed briefly about cryptocurrency airdrop. Now we discusse about it in detail. Cryptocurrency airdrop is a practice in the cryptocurrency field apply before launching the specific token in the market. The main objective of the airdrop is to promote the token before it's launching so that when it came to market it become stable. Airdrop is given to it's users by sending the tokens randomly to wallet addresses or in line with some parameters. Through a bot companies apply airdrop of specific token on social media platforms like telegram, Twitter and users asked to do some social tasks.

People join the airdrop by sign up using their email and do social activities like taping, mining the token, posting, retweeting the post and many more. Before distributing the token users asked to connect their wellet addresses and after launching users are given the cryptocurrency tokens in their wallets seeing the eligibility criteria. So this is the cryptocurrency airdrop according to my knowledge.

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● Some examples of cryptocurrency airdrop:

There are many tokens which are launched on cryptocurrency apps like binance, with the help of airdrop projects. Some examples are given below;

Chainlink (LINK):
This token was launched in 2019 before that they conducted a airdrop project in which LINK tokens were distributed to users. It enhanced it's users, promoted the LINK token in the cryptocurrency field and made the token more decentralized.

Uniswap (UNI):
This token was launched as airdrop in the 1st of September 2020 in which users are token 400 UNI tokens at the end of September 2020. They were given token by looking their previous Uni transaction. Main objective was to encourage investors for investment in this token and gathering more people to this decentralized token.

Binance coin (BNB):
Binance coin after successful projects still it is given as airdrop in certain campaigns on binance app. This airdrop used binance usdt (BUSDT) and (XVS) tokens in it's projects. I think this coin is given first come, first gain bases.
The main objective of this airdrop of attracting more users to trade in newly listed tokens on binance and for making ir more decentralised exchange among all others exchanges.

Airdrop and Giveway are the same things in rewarding as they reward the tokens to their users for free. But both are quit different in their function and conditions.

Airdrop is rewarded to it's members who do some specific activities like joining community, promoting the airdrop and by doing other social tasks. Users who gathered more points and hold the points for certain time are given the particular token in the form of airdrop.

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Example In the case of steem token; Let's suppose that before launching the steem token the steem blockchain apply the project for promotion of steem token in the form of airdrop. First users are asked to connect its website and than they all have to do certain activities for gaining the steem token as airdrop. At the end of project users will be given this token who met the criteria issued by steem blockchain. This is the simple example of promoting steem as decentralized token on different exchanges.

Giveaway, although given free to users as airdrop but different from airdrop in it's action. It is difficult to gain reward of specific token given by giveways. It also asks for some activities but it's numbers of members are specific and are rewarded the token on first come basis.

Example suppose steem blockchain run a campaign on specific crypto exchange it might be binance or bybit for specific duration. In that compaign users asked to join it and after performing all particular activities they will rewarded with steem token. This is steem Giveway. This compaign helps in promoting steem token and make it more trading token on particular exchange.

Airdrops are specifically employed in the field of cryptocurrency from the project holders for promoting token and users use this project as mean of their earnings. Both project holders and participants gain benefit from airdrops but there arw also some risks related to airdrops. I have discussed below about its advantages and disadvantages of Airdrops for both project holders and for participants.

Advantages for project holders:

Project management run the compaign of airdrop using bot for attracting the intention of investors to their token. After giving specific name to their project they launch the airdrop on social media platforms like mostly used is telegram. Users join the compaign and perform social tasks, this give popularity to token and make liquidation of token more strong. Thus airdrop is beneficial for project holders. More people holding the token more chances of its trading on exchanges and more investment will be done.

Disadvantages:

If not controlled wisely by a specific programme this will be very disadvantaged for project holders. Project holders should be first clear the Kyc of the users for preventing multiple accounts from one individual. The security of the airdrop should be maintained for preventing from dilution of the token. Some users hold the token for long term this cause in low price of token thus it is risky for project holders.

Advantages for participants:
As airdrop allow it's users to earn free tokens just doing simple tasks in this way participants earn a handsome amount by selling the tokens which they are rewarded in the form of airdrops. By involving in airdrops they get knowledge about cryptocurrency this is also very beneficial for participants.

Disadvantages:

Main disadvantage for participants is scamming in the form of airdrops. With the successful launching of many crypto token many scammers are doing fraud in the form of airdrops. Such that they share a link and show that it is a best airdrop project, when users click the link for joining the scammers get access to user's personal information and steal the stake tokens.

If we talk about steemit this a wide platform working in the form of blockchain and now it very popular and has a a lot of users. These users share the informative content on the blockchain and for that they are rewarded with steem token. This helps a lot for promoting steem token and due to it's reward system it become very popular.

Security and regulatory challenges related to field of cryptocurrency airdrops and giveaways are included:

• Security transactions in wallet addresses
• KYC problems
• Investment contract with investors
• Users can face lack of clarity on regulatory status of airdrops and giveways.
• Struggling for classification and distribution of tokens
• Some security measurements
• Facing unnecessary fear in the field of cryptocurrency
• Constant threat of fraud from scammers
• For successful launching of airdrop, positive feedback is necessary
• Users potential who join the compaign

All these challenges can be solved by:

• Allowing judicial confirmation from successful project holders
• Applying KYC pass rule very wisely
• By facing the regulatory instability
• Encouraging stake holders for innovation
• Asking for feedback from participants
• Engaging more with in the community issued by project holders
• By employing a transparent compaign
• Managing security measures for successful launching of token

It is very necessary for maintaining regulatory and security measures for successful launching of tokens. There are many scammers in the cryptocurrency field who do fraud by sharing irrelevant links. We should be very careful before joining any airdrop.

Purpose and Objective:

Airdrop act as marketing tool for promoting any crypto token on exchanges. It's the best strategy use for liquidation of specific token. The circulation and distribution of tokens to wide number of participants make the token more steble.

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Eligibility criteri:

In the case of steem blockchain we will require from participants to be active like posting, commenting and voting for specific duration of time. First users are asked to upload introductory post than they will considered as eligible for this airdrop.

Required participants actions:

Participants asked first to sign up and do some social tasks which are helpful for promoting the project. Than they are asked to make one blog post for promoting the airdrop. Second they are required for inviting their friends so that this airdrop will reach to more people.

Safety measures:

For security we will ask to participants for passing Kyc so that one individual can't make double account. For preventing from scammers we will allow some private keys which will fully different to all users.

Promotional strategies:

For promoting the token different social tasks can be asked to users for doing. Make a community in which users engaged with each other. For promotion steem token users share the link on their social accounts and invite the fiends. Show the project as real and convince the participants by simple tasks and by adding the wallet addresses of certain exchange. These strategies may be helpful for popularity the project.

So friends this is all about my today post. In this post I have disscussed about airdrops and giveways and try my best to answer all the questions by using my poor knowledge. Guide me if there's any mistake in this post. Being a newcomer I need your guidance.

Thank you