Bounty and Airdrop in ICO: free cryptocurrency methods

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What are Airdrop and Bounty Programs

More than other areas of the cryptocurrency industry, it is the opportunity to make money without any investments that attracts newcomers. It should immediately be noted that such an opportunity may not always persist. Now the current way to receive funds for free is Airdrop. Most cryptocurrency users have heard of it, but many of them have decided that this is another type of fraud. However, this is not always the case and in this article we will tell everyone about how it works and how to get cryptocurrency.

In the field of cryptocurrencies, Airdrop is the distribution of its tokens by any project for free. This term is taken from English and means dropping cargo from the air. Thus, project developers seem to “dump” their tokens on the Internet.

Airdrop announcements are about the same as news about the launch of the initial token placement (ICO). Typically, the crypto community is notified in the following ways:

  • Publications on BitcoinTalk and other popular thematic forums
  • Announcements at specialized sites (the list is presented in the corresponding section at the end of the article)
  • Project groups in social networks
  • Already existing sources in social networks

Information is published some time before the start of the project, and its active dissemination begins after the start of distribution. The announcement almost always contains information about the technical features of the project and the tasks that it solves. Distribution conditions must also be present.

Reasons and history of occurrence

Most often, airdrops are arranged by new startups that are not known to anyone on the market and want to get started in this way. It can be trading platforms, blog platforms, classic currencies or other applications.

Thus, startups attract investors, future customers and offer to use their services or simply share information with the community to attract those users who are really interested in the project. In simple terms, the goal of an airdrop is regular advertising. Therefore, large and well-known projects, such as TON, will not conduct such distributions.

Airrop Bounty Campaign: Key Differences

Some people sometimes confuse airdrop with a concept like a bounty campaign. However, these two types of earnings have important differences. These include the following distinguishing features:

Firstly, Airdrop has much simpler requirements for participants. Bounties often require participants to have some specialized skills, such as programming skills, translation skills, or design knowledge. Developers who have chosen bounties for their project are looking for competent people, and project developers with a simple distribution system do not set any requirements. In addition, bounty campaigns may require the user to have a large number of followers and deep knowledge in a particular area. At the same time, Airdrop requires only the simplest actions that are aimed at increasing the popularity of the project.

Secondly, it’s easier to implement Airdrop. If the user is registered in the bounty campaign, then he can expect his rewards for more than two weeks. And registration in Airdrop usually comes down to filling out a Google form. Coins to the wallet also come much faster. Of course, sometimes tokens with free giveaways have to wait long enough, but most often this is not related to the complexity of the implementation of such a system and occurs due to any technical errors of the developers.

Thirdly, for airdrop you will receive much less tokens than you could get for participating in the bounty. The participants of the crypto community tried to calculate the differences in payment and concluded that the difference is ten times different. Of course, this number is not accurate, but the fact that the difference is significant can be easily confirmed. However, it should be noted that efforts have to be made less when it comes to Airdrop.

How to participate in the free distribution of cryptocurrency

There are two main options for conducting an Airdrop campaign, which differ in some conditions:

In the first case, coins are distributed to everyone who has a certain cryptocurrency. Distribution occurs in proportion to the number of coins that is on the owner’s wallet. This type is called automatic, because all processes in this case are automated. This approach is often used by hard fork creators. It can be both developers and teams who just want to improve an existing project.

Thus, the owners of the cryptocurrency become the main target audience of the new project, because if the user is interested in the classic version of the cryptocurrency, then his improved version, that is, hard fork, may also be of interest to him.

As an example of such distributions, you can recall Bitcoin Cash. It was distributed to the holders of bitcoin in a one-to-one ratio, and this process took place automatically.

Sometimes, special conditions are set in order to receive currency in such distributions. So, for example, Bitcore coins were transferred only to those users who possessed more than 0.01 bitcoin.

There are also cases when new coins are distributed to holders of third-party projects. We could observe this situation with the Stellar project, which was distributed to the owners of bitcoin. Now many Airdrops are conducted subject to the availability of a certain amount of Ether cryptocurrency on the account.

Another option for free distribution is a kind of promotion of users. It is understood that users can somehow help promote a startup. Thus, anyone can get coins, but developers get a guarantee that he will not just leave the wallet address and disappear with tokens without providing any assistance to the project. It is for this that various distribution conditions are prescribed.

The conditions are always different, But they are all aimed at promoting the project and can be fulfilled by almost anyone who knows how to use the Internet. For example, you may need reposts on social networks or some kind of newsletters. Of course, the conditions are not as difficult as the bounty program puts.

Sometimes startups can even pay for ads in the signatures of famous users on forums. Sometimes you just need to leave a review or register on some resource.

Precautions: how not to become a victim of scammers

Often there are cases when airdrop projects turn out to be simple fraudulent schemes, attempts to use social engineering methods, or even the spread of virus software. For example, a project is organized that distributes tokens to cryptocurrency holders of ether. In the user registration form, they are asked to indicate the wallet address, email address and the number of coins on the wallet. The presence of this information with the hacker makes the account quite vulnerable. Some do not even hesitate to ask users to specify a private key or other sensitive data. The saddest thing is that many are engaged in such a divorce and are left without money. In addition, the distribution of tokens can turn out to be a financial pyramid scheme or one of the tools of a phishing site.

Should I take part in Airdrop cryptocurrencies

Users who have any significant amount of popular cryptocurrency on their account can use these campaigns for extra income. In this case, they will have to monitor the Internet in search of projects that distribute tokens to the owners of a particular cryptocurrency.

You should be careful, because there is a high probability of running into any scammers. You should be careful about all stages of registration in the distribution. You need to check everything – from the correctness of entering the website address and to the requested personal data. In no case should you specify private keys, passwords and other information that can be used to access your account.

In addition, such projects may interest people who have long been active participants in cryptocurrency forums. If the account is sufficiently promoted, then the user can easily become a participant in the campaign, providing advertising for the project and the additional income will not be worth much effort.

Users who are the owners of promoted accounts on social networks can also take part. You can make good money on this, provided that the number of subscribers exceeds several thousand.

If we talk about users who are not owners of publicized accounts in social networks or profiles on forums, then for them it is not very advisable to engage in the promotion of their pages specifically for participation in distributions. If there is great interest in blockchain technology and cryptocurrencies in general, then you can do it. But do not consider this as a good scheme for earning from scratch.

If there is little knowledge in the field of cryptocurrencies, then you can search for projects that do not require the presence of any coins or accounts and that contain conditions that are more suitable for the user. There are fewer such projects, of course, but they also exist and you can participate in them. The main thing is to remember that participation in Airdrop, although it does not require investments, may take a lot of time to fulfill all the conditions for participation.

The user can only decide on his own whether the participation in a particular project is justified and evaluate his time resources.

Advantage

1. Free receipt of cryptocurrency. The user receives tokens, which in the future could probably increase in price. You should not count on excess profits, but you can still get small amounts if the project is successful.
2. Minimum effort. If airdrop is carried out automatically, then the user does not have to do anything. In the case of encouraging airdrops, you only have to register somewhere or perform a couple of other simple actions.
3. Small time costs. You can perform all the necessary actions for participation in a short period of time, which allows you to participate in a large number of such programs.

limitations

1. High requirements for participants’ accounts. Encouraging campaigns often place requirements for which newcomers to the cryptocurrency industry will not be suitable, for example, to the number of subscribers or posts, reputation and other characteristics.
2. Relatively low rewards. It is obvious that no one will give out a large number of tokens, so to get a substantial income you need to participate in more than one project.
3. The low success of projects. A startup with a similar form of currency distribution is not very successful or even turns out to be some kind of scam.

 

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