What It Is and Why You Should Know About It

With an EOS airdrop coming to EOS wallets everywhere this summer, it’s the perfect time to take a look at what they are, why they matter, and why you should know about them!

Chances are, most of us have likely heard the term “airdrop” quite a few times since getting involved in the cryptosphere, but many may not actually know what they really are or why they’re worth paying attention to. Today, we’re going to help clear some of the fog around the subject and get everyone on the same page (Author’s note: Make sure you don’t confuse “airdrop” with “airswap”; they’re two entirely separate things).

What is an ‘Airdrop?’

The word “airdrop” may evoke an image of someone or something being dropped out the back of a large airliner, using parachutes to slowly make their way down to the ground and you know what? That’s actually not too far from the truth! Obviously, no one is going to be driving an airplane around just dropping free tokens out to the world in small cargo boxes (though that would be pretty cool), but the idea is the exact same.

When we talk about an “airdrop” in the cryptocurrency space, we’re referring to a form of token distribution. When specific tokens are distributed for a cryptocurrency, there are a variety of ways to send them out to interested investors. One of the most well-known distribution models is a token sale (think ICO sales and pre-sales), but another method is to literally just give them out.

Now, when these tokens are being given out, we’re not talking about randomly receiving an email saying “Congratulations! You’ve been selected to receive _____ token! Click HERE to accept them today!” Instead, we’re talking about tokens being distributed by the issuer to those who already have a created wallet and own some of the currency.

The idea of an airdrop is to reward those who are invested in the project and already hold a specific amount of the cryptocurrency as well as to help spread awareness. Though airdrops are typically done to reward those already holding the cryptocurrency, there are times when the distribution of tokens are done at random as well for another reason: marketing.

By handing out coins and tokens for free, a project can spread awareness, interest, and use of the cryptocurrency. Sometimes airdrops have requirements to participate like holding a specific amount of the currency, following the project team on LinkedIn, Twitter, joining a Telegram group, etc. But it all comes down to one thing: free tokens.

What is EOS?

EOS Logo 1.png

Just in case you’re not already familiar with EOS, let’s take a quick look at what it is and why you should know about it. EOS.io is considered the “most powerful infrastructure for decentralized applications” (known as “dApps” for short). The platform is a blockchain-based system that focuses on decentralization and provides the infrastructure required for the applications.

Not only does EOS provide a way for dApps to run, but it’s built to be robust enough to handle executing commercial-scale dApps. The EOS platform is similar to some of the other major platforms in the cryptosphere by providing the tools necessary for development and hosting of dApps as well (think something like Ethereum) but goes beyond that. The idea came about to create a system that can solve many of the issues already faced in the dApp sector, mainly regarding problems of scalability, speed, and flexibility of platforms.

Why Should I Care?

Just in case it wasn’t obvious earlier, the main reason investors should care about airdrops is because they mean free tokens. True, they may not be completely “free” since it might cost you a few minutes of your time (basically to prove that a wallet you own is actually yours and that you’re not a robot looking to scam the system), but you won’t need to actually pay for anything to get the tokens!

However, airdrops also matter for a second reason, though it may not seem as obvious. Airdrops are great marketing tools for the project and cryptocurrency they’re being done for. If you’re already invested in a cryptocurrency and you’re expecting it to gain in popularity (and hopefully value) then it’s in your own best interest to participate in the airdrop as well.

Since airdrops are fantastic marketing tools for the teams putting them on, you can help spread the word and recognition of the currency you’re already invested in. That’s going to not only help you immediately (free tokens), but in the long run as well (growing the project).

So what’s not to love about airdrops? Get out there are start participating in your favorite ones today!

In the next article you'll find out step by step exactly how to get your EOS June airdrop if you have invested.

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