The Biggest Crypto Airdrop in History
Recently, the cryptocurrency space has seen a massive influx of investors as institutional investors and big companies continue to get involved in the space. As more and more people continue to get involved with cryptocurrency, plenty of new and unfamiliar terms are coming to investors' attention.
In particular, a term that many are unfamiliar with is 'crypto airdrop' - knowing what they are, and how they have impacted the crypto industry, is crucial in having a well-rounded understanding of bitcoin (and crypto more generally).
What is an Airdrop?
Essentially, the term 'crypto airdrop' refers to the free cryptocurrency, whether crypto coins or tokens, distributed to a cryptocurrency wallet. It is a method of marketing that has seen varying levels of success.
Whilst it might sound like a strange thing for a cryptocurrency to do, it provides value. It helps companies and startups gain exposure and increase talk surrounding a cryptocurrency - not to mention; it provides users and investors with a great way to earn some free crypto.
Recipients of the small amounts of free coins will be active members of the crypto space. For example, a crypto investor who has been trading through a crypto exchange might benefit from an airdrop - in return, they are often required to complete a small service (such as retweeting a specific tweet regarding the relevant crypto coin); however, airdrops can also be carried out for free. When it comes to qualifying recipients, they also might need to hold a minimum amount of crypto in their wallet.
What Was the Biggest Airdrop in History?
When it comes to the biggest crypto airdrop in history, there are a few that stand out. In particular, many reports indicate that the biggest airdrop in history was done by Decred.
In 2016 (not long after the cryptocurrency launched), the new cryptocurrency Decred airdropped 258,000 DCR - this had a total worth of somewhere around the $500,000 mark. Whether attributed to this crypto airdrop or not, the price of DCR was between the $1 - $2 dollar range in 2016 - today, one DCR is worth approximately $140.
If you want to define the biggest airdrop based on new participants in a cryptocurrency, an interesting example is with Squeezer, in an airdrop that saw immense success for the crypto company. After a crypto token sale, they held an airdrop - the result was 20,000 joined users within an hour.
Ultimately, there have been countless airdrops over the years - whilst some have seen success (whether based on size or speed), others have just been moderately successful or have even been failures.
The Biggest Airdrop Failure
When it comes to the issues surrounding crypto airdrops, there are a few - a great example of them is in auroracoin, which is one of the oldest and most well known airdrops in history.
Back in 2014, the creators of auroracoin announced that AUR, intended to be a cryptocurrency designated for citizens of Iceland, could be received by Icelandic residents with permanent residents ID. All they had to do was register on a website, and they would receive 31.8 AUR - at the time, this was worth $385 - of free tokens to their crypto wallet.
Whilst this sounds like a great initiative, the project (and virtual currency) was a failure. The residents who did sign up immediately sold the currency, and today, AUR is worth approximately $0.17.
Cryptocurrency Airdrops Today
While cryptocurrency drops on the same scale as Decred might be less common than they once were, a number of successful cryptocurrencies of today (such as Stellar Lumens, and the Spark token) saw success following airdrops, and numerous airdrops continue to occur monthly. Another great example of a successful token airdrop was with BadgerDAO, which was intended to support community members and did so successfully.
With this being said, there can be risks associated with a crypto airdrop. While rare, it is possible for crypto airdrops to be unfulfilled. In getting users to join telegram groups and share the cryptocurrency on social media, cryptocurrency projects have previously closed the telegram group, with the airdrop never arriving. Moreover, airdrops can require hidden fees that add up to be a higher amount than the worth of the airdrop. Finally, a crypto project often utilises its own airdropped coins to advertise other airdrops. As a result, it is important to do your research and make the right choices.
About the author:
Lucy is the content manager at Current.com.au. From Sydney, Australia, Lucy specialises in tech and finance writing. She loves staying up to date with industry news so she can bring well researched, timely and accurate information to her readers.
The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.