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ICO Airdrop Programs: How to do it for the maximum results?

What makes ICOs so desirable for startups is undoubtedly their ability to raise funds easily for the development of the company. However, attracting investors to an ICO is clearly a difficult task at hand. Numerous ICOs are being introduced every day and as a result, raising the funds you require may seem like a pipe dream at first. However, with the right marketing strategies, you can attract more investors to your project. In this article, I’ll explain a new kind of  ICO airdrop program, which can be far more effective than conventional airdrop programs.

What are ICO Airdrop programs?

Airdrops are basically giving away free tokens to potential investors of an ICO. It is a reward mechanism that provides incentives to people who help spread the word about the project. Projects that are just starting out will often give out a small number of free tokens to verified people or communities to talk about their projects. This way the ICO project is reached a large number of people. The community members will work with the full potential to make sure the ICO is familiar in the crypto world. Airdrops are also useful in generating valuable leads for the company. In exchange for free crypto tokens, the users will be asked to fill out personal information which can be used to develop a good list of potential leads.

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How an airdrop helps your token?

The free tokens declare a good incentive for the community for creating a buzz about the project. However, another reason for giving away free tokens is – they will help to increase the value of the token. When people hold the tokens that were given away for an extended period of time, the value of the tokens will go up. Usually, the amount given out during the airdrop is low in terms of fiat currency, but as said before if people hold onto the token for an extended period of time and pick a suitable project with that token, then tokens can grow in value. In the long run, it’s up to the recipient to hold the token or to spend it. However, I have to add this disclaimer that many airdropped coins will not be able to sell at the time of the airdrop.

In a conventional ICO airdrop, crypto tokens are given away to people mostly on a first come first serve basis. The founder of the ICO cannot anticipate any positive impact of the airdrop on the ICO due to the unambiguity of the airdrop recipients.

How ICO airdrops can be more effective?

The best way to do an airdrop is to give away free tokens to those people who have a higher chance of investing in your ICO. Rather than giving away tokens at random, identify your potential investors, rank them and distribute the tokens based on the rank. This includes identifying people who work in the same sector as your ICO project, people who have invested in similar ICO projects in the past, etc.

This may sound like a hard nut to crack (Actually it is) but it is easily possible if you are using CoinFactory as your ICO launch platform. Coinfactory’s sophisticated airdrop engine identifies the investors who have invested in ICO projects similar to your projects and airdrops free tokens to their personal wallets.  This will catch the attention of the token recipients towards your project and makes your hunt for investors easy.

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Airdrop programs will help to spread the awareness of the project to the relevant audience of potential investors with the help of existing customers. Leveraging this new marketing strategy will clearly help to bootstrap your ICO project.

Author

Rahul A R is a technologist and full stack developer who specializes in Blockchain technologies and Cryptocurrencies. Though he’s worked within numerous privacy and security sectors, Rahul’s recent emphasis has been on solutions built on Ethereum, Tezos, smart contracts, and smart signatures, in particular, decentralized self-sovereign identity. He’s Helped clients, from start-ups to Fortune 500 companies, across North America and Asia, develop their blockchain strategy and build several decentralized applications using blockchains and smart contracts.

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