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

Friends I am privileged to be here, we are still tapping our way to financial freedom by doing airdrops, I tap hamster, tapswap, w-coin and lots of them. Thanks @basil20 for inviting me, I was still working on this before now and it has taken me days

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CRYPTO AIRDROPS AND GIVEAWAYS

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A cryptocurrency airdrop is a strategy blockchain-based project adapted to distribute tokens to a large number of addresses for free, a little contribution is made to end this token not by Investments, the contribution here could be logging in daily to claim your token and sharing the project with friends who would also participate, the aim of cryptocurrency airdrops are enormous and are commensally beneficial.

• By the distribution of this token, their project will gain engagements, thereby ranking them better in a competitive crypto market

• Airdrops can entice users and investors as well, while they explore the space and seem to find the projects interesting.

• Airdrops can be used by different projects to gain incentives like social media channel engagement (followers, likes, comments etc)

Cryptocurrencies distributed through airdrops

In 2018, cryptocurrencies like Tron(Trx), binance coin(BNB), Stellar(XLM) as well as the steem currency was distributed through airdrops

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DIFFERENCE BETWEEN AIRDROPS AND GIVEAWAYS

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Though airdrops and giveaways have a primary aim which is the promotion of crypto projects, there is a clear difference between the two.

Airdrops involve the distribution of free tokens to a large number of addresses, certain rules are being given but this could mainly be so that the token distribution would be successful and its process is automated.

A giveaway is a form of token distribution organized by crypto influencer exchanges like Binance this distribution requires the completion of certain tasks like following and liking posts on social media.

For Steem, I would say a giveaway is currently running on the Steem blockchain because you can't get the Steem token if you are not contributing to the space by participating in context by participating in a Contest where the Steem currency is acquired without investments.

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ADVANTAGES AND DISADVANTAGES OF AIRDROPS

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For developers;

Advantages	Disadvantages
It increases awareness as the Airdrop continues on the space, for steem it raises awareness as content creators keep on engaging	Airdrop distribution is costly as it requires so much from project developers to keep the distributions on
Platform building: for the Steem token rewarding content creators helps in building an active community around the stimulate platform	Token dumping may be seen if a large number of recipients of the Steem token decide to sell their token at once after distribution and this will lead to token market value deppreciation

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For Participants;

Advantages	Disadvantages
Participants receive free tokens without investing with their finances	Participants may be at risk of high taxes which may be more substantial than a token received investing in this can lead to loss
Early birds have higher chances of having high returns, I looked through my Binance account and I saw a time 1 steem=$8, beneficiary that had 100,000 steems tokens at that time their benefit will be massive	Volatility; if holders of the steam token at 2018 had not sold out they token at that time they would have been filled with so much regret because steam doesn't amount to 0.5 dollars this time

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Security and regulatory challenges

Scam and fishy attack; Fake airdrops could be created to steal personal information and create engagement on social media portfolios for personal interest. Education on legit project tracking and verification before participating could help avoid scan and fishy attacks

Smart contract vulnerability; Airdrops that use smart contracts are susceptible to attacks and it can lead to potential fund loss.

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For regulatory challenges

Tax implication; exchanges can implement a varying tax and the consequences of this implementation are on both the participants and the project this could be managed by reporting the value of the airdrop to reduce taxes implemented

KYC and AML requirements; Airdrops and giveaways must comply with anti-money laundering and know your customer regulations to prevent fishy activities, to manage this challenge KYC procedures should be implemented to verify a user's identity.

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STEEM TOKEN AIRDROP PLAN AND IMPLEMENTATION

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• Eligibility criteria

This airdrop is strictly for new users who have signed up and completed the basic KYC process and for active users of the Steemit platform with a minimum account age of 6 weeks and a minimum of 30 posts/comments COMBINED. The referrer and referee are eligible for this airdrop if the above criteria are met.

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• Participant action

Complete account verification through KYC for new users through an achievement post and an updated profile information that tallies with the post

Publish at least three posts during the airdrop period with an achievement post inclusive

Follow Steemit's official social media handles with the username @steemit on Twitter, Facebook, Instagram and Youtube

Refer at least one user who will complete the above-listed task.

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• Airdrop distribution mechanism

Automatically verify eligibility based on predefined criteria

The token will be distributed to eligible participants as airdrop elapses

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• Security measures

Implement a secure KYC process to verify users, ensuring that one user doesn't attempt airdrop twice during the airdrop process.

All data collected from participants should be protected

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• Promotional strategies

Social media campaign; launch targeted campaigns through top social media like Twitter, Facebook, Instagram and Telegram ads could be created to increase visibility

Influencer partnership; collaborate with top influencers with verification batch and a high number of followers to reach a broader audience and increase credibility from users and investors

Exchanges advertisements; collaborate with exchanges to run on their portfolios

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• Execution time

Prelaunch phase week 1: Finalize all criteria and security measures, begin promotional activity and set up KYC infrastructure with educational PDFs

Launch phase: Open airdrop for participation, monitor engagement on social media platforms, fix technical issues and provide participant support.

Post-launch Phase: Verify participants' eligibility and distribution via the provided smart contract address, analyze the success of the airdrop through engagement rates and social media platform reach, and collect feedback/reactions from participants to improve the project in the future.

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I would love to invite @khursheedanwar, @kouba01, @edgargonzalez and @bossj23 to join in this contest

_{Posted using SteemPro Mobile}