Steemit Crypto Academy Contest / S19W1: Crypto Opportunities: Airdrops and Giveaways

Hello all my friends...

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It's great to still be able to join friends at Steemit Crypto Academy season 19 Week 1 with a very interesting theme and as we know, airdrops are currently very popular among cryptocurrency lovers. By participating in the airdrop we can get free tokens without having to pay. This looks very profitable at the start, but we need to be careful with every step we take because many airdrop projects are also scammers.

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Explain what a cryptocurrency airdrop is and what its main objectives are. Give examples of projects that have used airdrops.

Cryptocurrency Airdrop is a method of distributing crypto assets to some people or communities for free. This is a marketing strategy to increase the existence of these assets in the eyes of people and then attract them to invest in them. Usually this is a new crypto asset. Most airdrops ask us to do simple things like provide an email to register for a newsletter, give a referral to a friend, or download an application. After that, we will usually be given crypto assets in a predetermined amount according to what was promised at the beginning.

Airdrops allow us to diversify our crypto asset holdings at no cost or free and have the potential to provide profits if the assets increase in value. For its creators, airdrops spread public awareness of the created crypto asset (like effective advertising), provide incentives to early investors, and increase ownership of the blockchain network. Everything offered can tempt the recipients.

However, we still have to always be careful with Cryptocurrency airdrop because there have been several cases where it was used to take personal data and also private keys and several friends on Steemit have experienced this.

An example of an airdrop that once boomed was the Auroracoin project in 2014, where every Icelander received a certain amount of AUR, demonstrating a revolutionary style of guerrilla marketing, albeit with challenges afterwards. In Indonesia there is an airdrop which is also very popular, namely the project "PlayDoge". This project was launched in May 2024. PlayDoge features a fun 2D Doge pet that brings real utility to a Tamagotchi-style P2E game that supports staking with huge APY rewards currently over 11,000% (this information is in the app). And there are many more.

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What is the difference between an airdrop and a giveaway in the field of cryptocurrencies? Explain with concrete examples, including similar initiatives with the Steem token.

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Airdrop

Many crypto companies distribute free coins to their communities to increase project visibility, increase circulating supply, and stimulate trading.

Airdrops are usually token rewards awarded by completing given tasks such as simple social media tasks (Join their Telegram group, repost on Twitter, etc.).

These airdrop offers usually create a scenario where the company and the airdrop user both benefit because the company gets free marketing, and you get free crypto. There are also other Airdrops that will reward you simply for holding certain coins without the company expecting anything in return.

However, you still have to be careful about the type of airdrop because many airdrops turn out to be just scams, even the link provided can read all the information related to emails and others. Remember that airdrop prizes cannot be disbursed only through ordinary wallets such as Dana, Linkaja, or OVO, usually the disbursement process is connected to a cryptocurrency wallet, and reading the token history is very necessary to avoid major losses.

For example;

Now there is also something called the "Hamster Combat" project. This is a kind of game that awards tokens when a given task is successfully completed. Users can also play tap tap hamster with the number of points according to their level. In the selection options there is an "Airdrop" option. Here we can get tokens for free by completing the list of tasks that have been given.

This token has not yet been launched and its popularity is almost known throughout the world. In Asia, it is the most popular cryptocurrency money-making game at the moment. Maybe if you have reached the target, the token will be released immediately or vice versa (just a cradle). And today, July 14 2024, this airdrop cannot be accessed and if this is a scam, it will be the biggest airdrop scam ever.

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Giveaway

Meanwhile, giveaway is a marketing strategy that is generally carried out on social media by providing free gifts to social media audiences. These prizes can be in the form of products, services, or even cash or electronics. To win, conditions are usually imposed such as giving likes, comments and sharing the giveaway post.

On the Steemit platform, we see the same thing where communities/individuals try to publish a contest with certain conditions. If we can complete the task with the conditions met then we will have the opportunity to be the winner. The winners will be given prizes for their participation with various giveaways such as distributing Steem Power, liquid steem, TRX/SBD, sounds for booming, and coins.

For example; The World Of Xpilar community recently issued a contest [WORLD OF -subscribers-milestone-with-exciting-contest) with an unusual prize The Steem Silver Coin from 2018 comes with a certificate and there will be free shipping to the winner . Not a free gift, they provide several conditions to be fulfilled.

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What are the advantages and disadvantages of airdrops for project developers and participants? Use cases involving the Steem token if possible.

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Crypto airdrops are an effective way for blockchain projects to introduce their tokens to a wider audience. If we can do it right, we can get crypto tokens for free, even up to tens of millions of rupiah. The following are the advantages and disadvantages of airdrops;

Airdrop benefits

• Get Free Tokens
  Airdrop allows us to get crypto tokens for free without having to buy them without spending a penny and these tokens can be used, stored or traded.

• Portfolio Diversification
  Participating in airdrops allows us to add various tokens to our crypto portfolio thereby reducing investment risks and increasing profit opportunities.

• Increase knowledge
  Participating in airdrops allows you to learn more about new projects and technologies in the crypto industry. The project that organizes the airdrop will provide direct information about the latest innovations and market potential so this will really help us in the trading process later.

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Airdrop disadvantages

• Fraud
  Nowadays, we see a lot of airdrops that are scams that aim to steal our funds or personal information. These airdrop scammers can impersonate legitimate projects and ask for sensitive information such as private keys or other personal data.

• Failed Project
  Some projects with airdrops will not be successful. Not all projects are successful or achieve their goals, so the tokens you receive may not be worth anything.

• Wallet Security
  If we engage in an unsafe airdrop, your wallet may be vulnerable to attack. Loss of funds may occur if you provide your wallet information to untrusted sources. Do not provide any related informationwith personal data, let alone our wallet password.

However, often this project is used as a tool to earn money without having to work a lot or for free. Therefore, to avoid fraud and get the best benefits from airdrops, we must ensure that this airdrop project is validated before participating.

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What are the security and regulatory challenges related to cryptocurrency airdrops and giveaways? How can these challenges be managed?

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Scammer groups may offer digital currency airdrops to potential backers, providing guarantees about returns and long-term benefits to those who purchase additional tokens. However, they often do not follow through or have a genuine commitment to the initiative. As a result, backers may witness a sudden drop in the value of their tokens when the venture is abandoned, resulting in a loss of investment.

Unauthorized crypto airdrops often manifest as a token or multiple tokens having a large monetary value, either appearing spontaneously in a wallet or being “accessible” by entering wallet details on a third-party platform. These airdrop scams may originate from entities impersonating well-known brands or may even be perpetrated by users on cryptocurrency exchanges.

^source

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Fraudsters often collect information under the pretext of fake airdrops to infiltrate wallets, making off with the cryptocurrency and secret keys we've been given. Whatever efforts we make to return the money in the digital wallet, it will not produce results because the changed password cannot be reloaded.

Protection Measures :

It is important for us to always be alert and careful. In the digital world, anything can happen, especially if we provide personal information such as passwords to something that is not clear. We recommend that before doing anything on a particular airdrop project, we must ensure the authenticity of the project.

And before investing further in tokens offered by startups providing digital currency airdrops, it is important to evaluate their on-chain security protocols, token transaction fees, and project goals. Stay alert to any discrepancies in smart contract code, undisclosed transaction or sales fees, or lack of clear product descriptions from the organization.

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Propose a detailed plan to organize an airdrop using the Steem token. The plan should include eligibility criteria, required participant actions, implemented safety measures, and promotional strategies to maximize impact.

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If the Steem token follows in the footsteps of distributing Steem tokens for free (airdrop), then the important step that must be taken is to plan to be a trustworthy airdrop or not a scammer airdrop. Next, determine the distribution method for Steem tokens. I will propose the "bounty" method because this method is very effective and much in demand in today's technological age.

Some common tasks that users can perform to receive airdrop bounties include registering for a steemit account or following steemit social media channels. Project promotion on any social media platform, content sharing, and active community membership on Discord servers or forums can also earn airdrop bounties.

In an easy and proven safe way, the plan to attract users' attention in introducing the Steem token will be very effective. Making the platform a trusted platform will very easily increase the value of the token as well as the value of the platform.

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Until here, my participation in the Steemit Engagement Challenge S19W1 at SteemitCryptoAcademy.
I would like to invite my friends to participate in this Steemit Engagement Challenge, @eliany @chant @stream4u @drhira @patjewell @goodybest @wakeupkitty @ulfatulrahmah @sahmie @hamzayousafzai @el-nailul @alee75

^{Thank you also for supporting me at every opportunity}

greetings,
From your friend
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