Monday, March 12, 2018

New cryptocurrencies are trying to entice in customers by giving away 'free samples'

There is an interesting new phenomenon occurring in the cryptocurrency sphere, and it involves companies giving away free samples, or 'airdropping' them directly into the accounts of current crypto holders.

With over 1400 recognized cryptocurrencies having already been created since 2008, and with the expectation of thousands more being developed as companies begin to migrate over to the Blockchain, developers and entrepreneurs need more and more gimmicks to try to entice customers to check out their tokens, and thus the idea of airdropping was born.

Digital currency developers are trying a new tack for marketing and encouraging mass adoption: "airdropping" free cryptocurrencies into people's accounts. 
The meaning of airdrop in the cryptocurrency world has little to do with an iPhone. In this case, a group of people starting a new digital currency decide to give these newly minted tokens to holders of an existing coins like bitcoin or ethereum, for free. 
"In certain ways people are getting free lottery tickets," said Matthew Roszak, co-founder of enterprise blockchain-technology company Bloq. "There will be a tsunami of airdrops this year." 
Earlier this month, holders of the cryptocurrency neo were selected to receive another digital coin called ontology, for free. The token is supposed to give holders voting rights for a platform that focuses on identity verification and data services. Ontology began trading on Hong Kong-based exchange Binanceon Wednesday, according to a release. 
Three other teams — including developers behind a Wikipedia-like site called Everipedia, similar to the ethereum's Callisto Network, and a smart-contract system called United Bitcoin — are also planning airdrops, according to Fundstrat Global Advisors. - CNBC
With over half of the ICO's created since last year having failed to take off, providing cryptocurrency traders 'free samples' of their tokens is a novel concept if you need to try to get your crypto to stand out in the ever growing sea of digital currencies.  So if you have an account on an exchange, and regularly trade in some of the bigger names like Bitcoin, Ethereum, and NEO, don't be surprised if one morning you wake up and find you suddenly have a slew of cryptocurrency you never even heard of in your wallet, because at least for now this is the new marketing scheme being concocted to try to whet your appetite for their products.

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