When a new project is about to launch into the blockchain, one of the very effective methods that give projects a grand entry into the market is airdrops. Airdrops are very potent in supercharging new blockchain projects. Secondly, it helps new projects connect easily with new blockchain communities.

Airdrops is a marketing strategy for many blockchain projects. It boosts a project's brand awareness before and after the launch of the token. The most interesting part of airdrops is that it is a call to action which involves incentivizing new communities for contributing to a project's publicity.

However there is more to airdrop that most crypto enthusiasts hardly know about. Airdrops generally trigger a psychological effect on the beneficiaries. We will take a deep dive into the truth about airdrops as we advance this article.

Know Airdrop Types

Standard Airdrops

This kind of airdrop requires little to no tasks at all and is very reliable. However, the airdrop supply is usually very limited and the token allocation is not 100% guaranteed.

Bounty Airdrops

To receive bounty airdrops, beneficiaries are required to complete certain tasks as trade-offs for receiving the tokens for free. The beneficiaries get the actual tokens after meeting the requirements.

Holder Airdrops

This type of airdrops is usually the catch. Holder airdrops rewards beneficiaries who have accumulated another token. For example a project can reward beneficiaries with token ‘B’ after allowing them to accumulate token ‘A’. So the more token ‘A’ you accumulate, the more token ‘B’ you receive. Think token ‘B’ as the main token.

The truth about airdrops

It sounds like a money-saving deal

Airdrops simply make people feel happy since they receive ‘money’ for doing almost nothing. The psychological effect and human desire for freebies gives a sense of excitement. It doesn't really matter to the beneficiaries if the token will yield value or not; the hype around the airdrop gets the best of them

Triggers Fear of Missing Out (FOMO)

Another truth about airdrops is that, most times people feel they could be missing out from a free money-making venture that others are benefiting from.

You all remember the Notcoin airdrop; not too many people participated in the airdrop. However after the beneficiaries cashed out, it felt like others missed out. Now a lot more people are taking their chances with the new tapping airdrops around the Telegram.

Airdrops triggers a loyalty effect

Airdrops makes you want to maximize the reward package by completing all the required tasks. Tasks like referrals, social media following, tappings, play-to-earn games and related tasks are relatable.

The loyalty effect that airdrops triggers becomes very beneficial to the blockchain project. For example, it improves engagement on the project's page, and makes a community of loyalists to advocate for the project for free. It also ensures a long lasting commitment to the project most times.

There is usually a difference between perceived value and real value

The hype around airdrops usually gives the token a speculative value that may not be attainable at the time of launch. This intensifies the accumulation effect.

On a summary note, airdrops are great marketing means especially for new projects seeking to reach new communities. It equally enhances token distribution which leaves a positive effect on the token’s value at launch.

However, it is advisable to verify the credibility of a project before participating in the airdrops. Secondly, connecting your crypto wallets to new project websites is very risky as they can become scam traps.