EOS airdrops and why it is a long term hold.
We are seeing a nice correction in EOS but it is still down significantly from the high. Crypto is still trying to recover from the recent downtrend in the market and I would like to take a little time to explore why I think EOS will be one of the best performers in crypto. One of the reasons behind this is going to be airdrops. For those of you who don't know what those are let me catch you up to speed really quick.
Airdrops
In crypto airdrops are used to distribute coins or tokens. In order for a project to be successful you want it in as many hands as possible. With most blockchains you can see the balances and wallet address of the users. Your Identify is still hidden but this info is public knowledge on most blockchains so people can use that info to give you free tokens or coins. Airdrops have been growing in popularity in recent times. A lot of new projects are offering airdrops to people after raising the money they need in private initial coin offerings (ICOs) and then skipping the public sale for an airdrop. They might have you join a Telegram group and complete some tasks to get your free tokens. Some projects like OmiseGO distributed a certain amount of tokens to anyone holding more than 0.10 ETH in their Ethereum wallet. Airdrops can also be thought of as similar to crypto forks. The most famous for being the bitcoin cash fork of the bitcoin blockchain back in August. If you were holding Bitcoin in a wallet where you controlled the private key or on an exchange that supported the fork then you received 1 bitcoin cash for every bitcoin you have. It was a 1:1 ratio distribution. So if you just had 0.10 BTC than you got 0.10 BCH. Airdrops have been growing in popularity.
Google search trends for airdrops
Forks and airdrops have been big drivers of the crypto markets in the recent months. Ethereum Classic, ZClassic and Monero are all coins that have seen spikes in price after the announcement of forks or airdrops. People seem to get very excited about coins when they find out they can get other free coins just from holding them. If you are not aware of it EOS is going to have an airdrop for IQ tokens for the project. Everipedia is a Wikipedia competitor and they plan on doing an airdrop for all EOS holders in June. Galaxy Digital funded Everipedia development with 30 million dollars. So since they have already funded the project there will be no ICO. The tokens will just be given to EOS holders.
So what does this all mean for EOS?
Block.one has already announced that they will be using the 1 billion plus that they have raised to help fund development on the EOS blockchain. They have also partnered up with some big names like Mike Novogratz's Galaxy Digital and Eric Schmidt’s TomorrowBlockchain. So while it has not been officially stated as far as I know but it looks very much like we will see others follow in the path of Everipedia's airdrop. It would make perfect sense for this to be a distribution model widely adopted by EOS projects.
This is beneficial for several reasons:
- block.one owns 10% of EOS tokens so they will get 10% of airdrops.
- It brings well known VC's into the vetting process.
- It helps to reduce the selling pressure of EOS tokens.
- Creates another reason to hold EOS and not just dump after getting free tokens.
- Helps build a better community around EOS with great projects.
As you can see there will be so many reasons for this to be the adopted method of token distribution. EOS already has many great things about it but this right here is the kind of stuff that really can help build an even stronger community around such an already powerful project. It helps drives development and success of the chain. These are some major reasons to hold onto EOS tokens because this project has so many amazing things going for it. Ethereum has just become a platform to launch ICOs but once EOS launches we will be able to see so many scalable blockchain applications that actually can be used. These are very exciting times and I look forward to all the amazing projects that the community will be building and growing together.
everyone likes when the EOS grows
I own a decent amount of EOS, (at least to me) I really didn't think about the airdops that might happen before I read this! thanks for the info..you have reminded me that I still need to register my EOS tokens which I have been procrastinating doing.. :D
Yeah you definitely need to get you tokens registered. Some exchanges are doing it for for but you wanna make sure you control the private key of the Ethereum account you have them in. This way in case there are multiple EOS chains launched you will have coins on all chains. Plus some airdrops might happen sooner. I think there is one coming up on 4/15. I should do a post on that.
Just be careful with 'airdrop' promises. Up to this day all of such were scams trying to steal your coins!
There are a lot of airdrop scams so people need to be careful. Never give out your private keys to anyone. Always move your coins to a new address before claiming forks and such. Always best to be safe.
Sorry for the late reply @rumble...long day :)
Yeah I know I have to do it, but honestly Ive never done it before (I have them all in MEW with my ledger) I am scared but Im going to have to just sit down and look up some tutorials to do it so I dont mess it up...
Some advise: set your gas limit to 90558 when registering your ETH address with EOS. Transaction will fail if you set it below that. 90558 gas is exactly what you need to register. Refer to ethgasstation.info to set your safe gas price.
awesome, thank you so much!
All good. Impressed that you have a ledger. Do you mind me asking where you got them? Some exchanges have already registered the EOS tokens for you. Also I do remember something about being able to import your private keys from your MEW wallet too. I will have to go look into all this. I can understand it being intimidating
I got them on Binance...but then I transferred them to MEW...I know that you can only register them if you arent in the US since they are still in their ICO..so ill need to use a VPN, and after that I am lost. For being into crypto since September I still dont know enough to feel confident doing these things lol
you can register using just mew but it is a process. I think I will look more into this and do a post on it
Another great post rumble! EOS airdrops definitely create an incentive to hold. The market needed this correction and EOS is poised to be one of the leaders of 2018. Please keep us updated if you hear anything new! Thx
EOS will be a leader in 2018 and beyond!
You beat me to it:
https://steemit.com/eos/@natxlaw/you-better-buy-some-eos-immediately
Cool just upvoted and committed on your post.
EOS and Cardano are my favorites. EOS is going to hit the market first therefore have high chances of making a huge success.
Tokens that’s distributed through forks or airdrops.. isn’t there an issue with them being dumped right away since most people consider them as “free” fiat? Can’t really get my mind around this.
Some people do this but not all. Take Bitcoin Cash for example. A lot of people dumped it quickly for $200 but some held on and it is now worth 1k. It also depends on the project. If it is an airdrop of something people really believe in than they will hold those tokens for a longer time period.
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This post has received a 47.67 % upvote from @boomerang.
I think there is an airdrop coming April 15th for people who hold at least 100 EOS. @altcoinbuzz talked about it in a video (I don't see the video on Steemit yet but I watched it on YouTube). Check it out and be on the look-out for that airdrop!
@rumble you were flagged by a worthless gang of trolls, so, I gave you an upvote to counteract it! Enjoy!!