A lot of you must have heard about airdrops already. That term ain't new to people in our crypto space. Just in case you have no idea owhat airdrop is, here is a quick one.
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When a company releases a new product and they want the world to know about it and buy it and they just can't get people to buy what they don't know since it's a new product, all they need do is give out some portion of the product for free.
Let's say they have 1000 unit of their product, they can decide to give 300 unit for free to a selected individuals, and keep 300 for people to buy and keep 400 for themselves.
The 300 distributed for free was distributed so the people can appreciate it, because everyone who has a coin wants it to moon.
If the project does well at the end, everyone who has the share of the 300, will tell those who don't have and they'll buy the ones available in the market.
the company pays for the transaction fee for those tokens that will be distributed.
note: most airdrops are not 100%, dome are sold to raise capital.
In airgrab, the same distribution I gave in the example above can be done, but the major difference is in the fees. Here the receiver of the coin pays and cover the transaction fees.
All the company needs to do is make the tokens available, those interested and eligible will pay for the fees to receive the token.
On Ethereum Blockchain, most icos and Ethereum have been proven to be useless or scam, not because of Ethereum itself, don't get me wrong. So what if these new tech on eos and Ethereum decides to airgrab?
Now imagine you spent $0.1 on transaction fees for 10000 coin, that would amount to $1000 spent on fees.
Assuming 50% of them ends up being scam, that means you've wasted $500+ on fees. The $500 is gone forever in waste, and the rest is gone but you'll be hoping the coin gains value.
Currently I don't know if airgrab is possible on Ethereum Blockchain, but it's sure possible on eos Blockchain.
eos has a feature that enables users to send transactions for free,that can only happen if and only if they lock up some token.
But for developers to do an airdrop, they'll need to buy ram so they can do their airdrop, after the airdrop has been completed, these ram can be sold back to get the capital used to do the ram,if and only if price of ram remains relatively the same, because they (eos) are planning on increasing ram 1KB/block.
airgrab on eos:it's quite expensive do an airdrop now on eos, so since fees can be gotten back after an airdrop, developers that don't have enough money to do an airdrop prefer do airgrab instead, which is a way in which the users get to pay for their ram fee and after the token is distributed, the user gets back Their fees.
Blockchain technology is still in its infant stage ..... Do your own research, embrace the techthat suits you and invest wisely.
