Pros and cons of airdrops
With airdrops, it seems like everyone is a winner; the owners of the ICO project will generate demand for their coin/token, and individuals who receive the airdropped tokens will get coins/tokens for free, which may turn out to be worth a fortune, when they get listed on exchanges. But, is there any downside to airdrops?
With the popularization of ICOs in the past couple of years as a preferred means for seed funding and crowdfunding in the crypto space, airdrops have increasingly grown to gain acceptance among ICO project founders as powerful marketing tools. Even though the word "airdrop" literally means the act of dropping troops, supplies, or equipment by parachutes from an airplane during times of war, cryptocurrency airdrops represent a different concept related to crypto project owners trying to market their coins/tokens by distributing them for free to members of the crypto community. Why would ICO project founders choose to give out their tokens/coins for free after spending time, effort, and money on developing them? In the early days, airdrops were used to get the attention of the crypto community. Everyone loves to get things for free, and tokens are easy to distribute for free. In many ICOs the tokens are included as part of the marketing budget, so using the tokens to pay for marketing purposes and getting attention might sound like a good idea. But is this actually good or useful?