Airdrops have become the bread and butter in the crypto world — and for good reason.
It is an indispensable marketing tool for upcoming projects that want to create buzz around their ecosystems.
If done correctly, distributing free tokens to the public can help drive demand – and unlock significant benefits for recipients. After all, if these digital currencies end up being listed on the major exchanges at a later time, their value could explode.
Unfortunately, the negative sides are starting to appear. These campaigns reach not only enthusiasts who passionately believe in what the project has to offer, but “airdroppers” who are just looking for ways to make a quick buck.
Airdrop hunters usually want to sell the tokens they received for free – ASAP. And for early-stage cryptocurrency projects, this can be bad news – it undermines carefully cultivated tokens and causes the value of the coin to plummet.
The current bear market also exposed another problem. Several projects are now postponing schedules for the opening of new tokens – pending a slight improvement in the economic climate. And while this is usually in the long-term interest of the project and its investors, it can be disappointing news for those who won tokens in an airdrop. why? Because they are no longer able to freely trade the digital assets they are entitled to acquire or liquidate.
So… what’s the answer? Is it possible to revitalize the airdrops and eliminate some of the negatives that have appeared in recent years? And is there a way to take advantage of scammers – even if they haven’t got the codes yet?
How NFTs Can Shake Air Projection
Currently, projects are trying to walk this tightrope between gaining publicity and engaging in marketing strategies that could harm their ecosystems. How do you get new users to follow your Telegram or Twitter account to be eligible for an airdrop, and motivate them to stay with the community for the long term?
Non-fungal airdrops – known as NFAs – could be the answer here. And, as you might expect, it incorporates some of the technology that NFTs rely on to generate a “win-win” situation for projects and winners of airdrops alike.
The NFA aims to represent the true value of the airdrop reward when the initial DEX (also known as IDO) is offered. This is accomplished through a model not much different from a forward contract – an agreement to buy or sell an asset that will take effect at a future date.
The only difference is that the project owner who issued the NFA promises to deliver the token or other digital asset at a future launch date. And since each airdrop winner ends up receiving different rewards under this model, there’s a unique, non-perishable gift.
In this scenario, the non-fungible airdrop will boast a mechanism that allows owners to claim their tokens at the launch of the project — in effect, capturing the value of the tokens in the future. Alternatively, it is possible to generate immediate returns by trading this NFA in a peer-to-peer market. What makes this concept so compelling is that those who choose to make an immediate transaction will lose out on perks in the long run.
Non-fungible airdrops can be equipped with exclusive avatars and special benefits, such as discounts and free trials on goods and services offered by the crypto project. Owners can also be given exclusive early access to future features — and better yet, their tokens will be waiting for them when they launch.
Have your cake and eat it
Arken Finance says it is the mastermind of the world’s first non-fungible airdrop, a concept that has the potential to shake up the DeFi landscape immeasurably.
The DeFi trading portal can be found across eight networks – and its goal is to arm investors with a greater number of trading instruments, all while reducing friction.
Arken started an airdrop campaign again in November 2021, but that was postponed as markets started to cool off. Now, the NFAs have devised a way to get excited about their future plans without getting caught up in the common pitfalls of surface-to-surface airdrops.
Now, 2,000 winners have been rewarded in their trading competition with their own NFA – each holding a different amount of tokens, each with different advantages. They will be able to get that crypto back at a later time, but there are plenty of exclusives to keep them occupied in the meantime.
“The team strongly believes in this application and is confident that this technology can be commercialized to DeFi entrepreneurs in the future,” Arken said in a recent blog.
And while enthusiasts missed the opportunity to own one of the first-ever NFAs during the initial airdrop, the project says subsequent rounds are planned for the future.
Some perks include a fee waiver for the first 24 hours of commercial competition – and NFA holders will have their own category in the competition. On the