Crypto Airdrops are promotional campaigns that distribute crypto tokens or coins. This usually happens at early stage of a token coin or an NFT project.
There are a variety of ways in which crypto tokens can be distributed:
– Private Sale
• This is one of the first events.
• The token is offered at a reduced price to individuals who express an interest in purchasing it privately.
• The purpose of a private sale is to raise money for the token project through the sale of securities.
• Funds are gathered to develop a product.
• Liquidity is needed to list the token in an exchange.
Token has no market value yet at this point.
– ICO (Initial Coin Offering)
• This is the first time a coin is offered for sale to the general public.
• At this point the crypto coin is not yet listed on an exchange.
• Price is higher than the Private sale.
There is still no market value for the token.
– IDO (Initial Decentralized Exchange Offering)
• Token is sold in a decentralized exchange.
• Liquidity had been provided by the team to support the launch price.
Token has market value at this point.
– IEO (Initial Exchange Offering)
• The token is first sold through a crypto exchange like Coinbase, Binance, etc.
• Token has hundreds of holders and liquidity is not an issue.
There is an existing demand for the token
– Dutch Auctions
• This is also one of the first events on coins and NFTs.
• Sales of the token are filled from the highest bidder down to the lowest until supply runs out or until the reserve price is met.
• This event will also provide liquidity or funds for the project.
• It’s a form of promotional campaign
• Usually at early stage of a token coin or an NFT project
• Tokens are sent to holders wallets for free
• The goal is to generate awareness and demand prior to a big event
• Applies to large NFTs collections on the “secondary market” or, to smaller NFT collections that would like to be promoted.
– Minting website
• It applies to large NFT collections.
• From hundreds to thousands of variations of the NFT
• Once an NFT is minted, its owner will be able to sell it directly to a buyer or in a “secondary” Marketplace