Why Should a Company Give out Free Cryptos?

Written by: Mike, AirdropRating.io

Airdrops are free cryptos/coins waiting to be picked up. But the idea of getting free money is simply unimaginable. I mean, nothing is free, not even in Freetown.

It’s not unusual to associate free things with sub-standard products, or as a reward for a prior purchase or task. However, in the cryptocurrency space, you can get rewarded for performing simple tasks. So why should a company pay you for doing almost nothing?

First, you must understand that once an item is free, then you are probably the product. Companies don’t just wake up one morning to do airdrops because they are nice guys. Rather, think of airdrops as part of an elegant PR plan, which will ultimately lead to an increase in the value of a token. It’s a win-win for crypto enthusiasts and these companies.

Airdrops serve these two major purposes:

1. Increase Popularity: I’ve already said that airdrops are a marketing strategy. The more wallets and people involved in a project, the stronger the base of active users or rather supporters. These supporters may turn out to become real customers in the long run. I’d naturally support and hype a project that has promised me some free tokens because I know I will have more in my wallet if the project increases in value. I bet, you would too.  

2. Increase Awareness: The crypto space is very busy – just have a look at the number of new tokens and ICOs that hit the market every week. With so many projects screaming for the attention of users, one way to easily grab attention is to offer something for free (which is what airdrops do).

Instead of putting traders at a spot where they need to research and decide whether they want to take a position in a project or not, airdrops give them some stake first and then let’s them decide if they want to sell, buy more, or hodl. When faced with such decisions, the first thing I always do is research the project and team behind it. This will spur me to either sell or buy more.

Putting all of these together, instead of spending a couple hundreds or thousands of dollars on an elaborate marketing strategy, companies can enjoy free and cheaper advertising by doing airdrops.