Airdrop Explained [Part 2]

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Holla friends... Welcome back to this space. I trust you all are doing just great. Yeah! As usual I brought you another interesting piece, it's actually the continuation of what we discussed previously on Airdrop.

We have been able to look at what the term means and the types we have.We talked about how airdrop can be a viable promotional tool and how people can be very instrumental in helping out with growth of a new project.

As beautiful as the concept of Airdrop sounds to those who subscribe to it and the team behind the project, it's also important to mention that it also has it downside which I would like to discuss today.
We will be looking at the pros and cons of Airdrop. So without taking much of our time, let's delve into it right away

Pros and cons of Airdrops

We will be looking at the pros and cons form both the stand point of the reciepients and the new project.
I mean, how does it benefit and affect the parties involved.

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• Pros

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Airdrops serve as marketing strategy of promoting a project. The team behind a new project looking to gain entry into the market knows that giving people free tokens can help lure them in their direction.

So it's kind of a win-win event for both the team and the reciepients of such Airdrop token especially when the project turns out successful. In a nutshell, Airdrop tends to raise awareness for new projects.

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Airdrop also aims to reward early adopters, I mean those who embrace the project at it early stage and have also shown serious commitment and dedication to it. Many have benefit financially by so doing from Airdrop just because they supported a project at it very early stage.

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Airdrop also help to increase massive adoption and usage of newly issue token. How do I mean, There are some Airdrop that would require that you carry out simple transaction using certain wallet or token so that you can be rewarded.
By so doing, more and more people get to try this out especially when they see that those who attempted got some form of reward.

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• Cons

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Most Airdrop actually turns out to be a pump-and-dump scheme or even an outright scam. Many malicious and dubious developers have employed this means in the past to dupe investors. That's the reason why one needs to be very careful not to fall prey of these people I the course of claiming free token.

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One may also be exposed to security threats if one is not careful, especially in a case where recipient would need to connect their wallet to some third party or external site where they (team behind a project) claim the free tokens would be distributed.

If you by any means sense any unusual activity in the course of claiming an Airdrop, do discard and terminate the operation so that you don't become their prey.

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Most Airdrop token end up becoming worthless because they don't end up on an open exchange where there can be liquidity for them. What's the beauty of a token when you can't exchange, buy or sell at any time and day on an open exchange.

Don't forget most of the project that engage in airdrop activities are new and upcoming, trying to breakthrough, if they don't eventually, everyone will be affected include those who might have gotten the token.

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Most investors have choices when it comes to token distribution. If the distribution do not suit then, they can be discouraged and back off. This becomes a loss to the project.

You won't blame them for backing off would you? If the mode of distribution seems not to be very transparent, they would definately back off. After all the are only trying to do the project alot of good by supporting it.

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Most project embarking on Airdrop are deemed as low quality project by most investors. To them, thy feel it's most likely fail on the long run. Some would even advice you not to subscribe to such project.

While this might not be totally true, you are still advised to always DYOR if you must subscribe to any form of Airdrop carried out by any project.

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I will like to wrap it up at this point, I trust you got one or two lessons from this piece. Do well to share your thoughts with me in the comment section. I will be more than happy to go through them. Gracias!

Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.

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Regards
@lhorgic♥️

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