Explained: How investors can participate in crypto airdrops

cnbctv18.com:

Airdrops in cryptocurrencies work just like discount coupons you may have often received in your inbox from some e-commerce platforms. The discount coupons aim to entice you into visiting the online store of the platform.

Developers of new blockchain-based projects adopt a similar approach, luring users to their platform by sending them free tokens.Airdrops are part of a broader marketing strategy with the underlying hope that more users will be drawn to the project – even if all they do is cash out the free tokens. Airdrops serve as an effective alternative for a fair distribution of tokens since some countries have banned initial coin offerings, an unregulated way to raise funding for crypto projects.However, there is one difference between discount coupons and airdrops -- the objective.

While discount coupons encourage you to make purchases, airdrops strive to create more awareness about the project.Also Read: Is crypto illegal in India or not: SC asks Centre to clarifyFor participation, users are invariably asked to complete tasks like following a social media handle, re-sharing a social media post, signing up to the network, etc. Token recipients are also incentivised to spread awareness among other people, as it translates into price appreciation.Free tokens, attractive incentives and just the general excitement of being involved in the launch of a project; what’s not to love about airdrops? However, before you go looking for airdrops to sign-up for, you need to know how to spot the right ones.