What is a crypto airdrop?

5/5 - (2 votes)

Clients also ask:

In more uncomplicated terms, an interim manager is a highly experienced and specialized manager whom you can employ for a short time to solve a specific business problem. He or she is a master project manager who will not only give you advice but also 

Company Formation in Russia

An Interim is hired to do the best for the business with no disguised agenda. Interim Managers carry customized models/project management frameworks that are tailored to individual business needs. Interim Managers offer cost-effective solutions and usually at half the day rate of traditional consulting houses.

Open a company in Russia with Russianlawyers.eu

Tax namePercent %Date:
Corporate Tax Rate20.00Dec 2021
Personal Income Tax Rate13.00Dec 2021
Sales Tax Rate20.00Dec 2021
Social Security Rate30.00Dec 2021
Social Security Rate For Companies30.00Dec 2021
Social Security Rate For Employees0.00Dec 2021

10 Steps to Open a Company in Russia – read more in Articles

An interim CEO is an individual selected by a company’s board of directors to take the role of the chief executive officer during a time of transition or as the effect of the sudden release of the company’s previous CEO

How to start a business in Russia – read more in Articles

bitcoin, cryptocurrency, currency-2643159.jpg
<a href="https://russianlawyers.eu/legal-forms/joint-stock-company-in-russia/">Joint-stock company in Russia</a>

Traditionally, airdrops are a marketing strategy used by crypto projects to encourage their platform.

The concept appeared in 2017 and has gained much popularity this year.

In the simplest terms, airdrops are a way to acquire cryptocurrencies without buying.

Crypto airdrop transfers newly created crypto project tokens to users’ wallets. There are several situations in which a project usually decides to run an airdrop, but the effect is always the same.

The user of the application/protocol receives a certain amount of tokens, usually to perform a simple task.

Crypto airdrops can be prizes for subscribing to a newsletter, following the project’s social media pages, or another way to draw attention to a brand and attract more people to the platform, but they are most often awarded for just using the platform. Projects most often run governance tokens. In addition to monetary value, management tokens give owners a voice and allow them to influence significant project-related decisions. Why do crypto enthusiasts love airports? Almost all crypto investors, especially those with smaller investments, see airports as free money and a way to increase their wealth significantly.

And in most cases, the token price rises over time, providing huge profits with almost zero capital.

Airdrops, of course, use the project that launches it to attract attention, but recipients of free tokens certainly reap many benefits.

Win-win situation. 4 examples of successful airdrops: Uniswap (UNI) airdrop In 2020, Uniswap, the most popular decentralized exchange office (DEX), launched all the original token, UNI, and all wallets that used the platform and made at least one transaction before September 1, 2020, received 400 tokens.

1inch airdrop

In December 2020, 1inch DEX airdropped 90 million 1INCH tokens to more than 55,000 addresses. Users had to trade at least $ 20 and make four trades before airdrop day to qualify.

ENS airdrop

Ethereum Name Service is a distributed, open naming system based on the Ethereum blockchain. The job of ENS is to map human-readable names such as “Alice. eth” to machine-readable identifiers such as Ethereum addresses, other cryptocurrency addresses, content hashes, and metadata.

Ethereum Name Service has airdropped 25 percent of the total offer to .eth domain owners as of October 31, 2021, and eligible users have to download tokens until May 4, 2022.

dYdX airdrop

The crypto derivatives exchange dYdX has launched its original token in one of the most significant distributions of decentralized finance (Defi).

Most of the dYdX will go to future retailers, and a quarter of the initial billion tokens will be distributed over the next five years.

Four reasons why crypto projects decide on airdrop

Creating consciousness

Awareness-raising is the primary reason why crypto startups run airdrops. In the early days of crowdfunding, ICOs took center stage.

However, problems soon arose. The flood of startups occurred during the 2017 gold rush, often with fragile and partially plagiarized white paper, causing saturation and numerous scams.

Also, countries like China have directly banned ICOs, and regulators like the SEC have begun targeting ICOs that target U.S. investors. Soon new projects needed a more enticing and legal method to create hype.

The answer was simple, sharing free tokens. The popularity of airdrops has led many projects to start aggressive promotion. But it is becoming increasingly clear to recognize when it comes to the so-called. “Pump and dump” scheme.

Rewarding users

The sad reality is that many crypto investors are looking for only the highest return on investment (ROI) and do not care about the project’s long-term sustainability. So they jump from one task to another, selling their tokens and making huge profits at the expense of small investors without providing any real value to the protocol.

Some projects are implementing token distribution airports to reward loyal users who use their platforms to counter this.

Decentralization of token distribution

Deep-pocket investors can take advantage of their great wealth and secure a bargain purchase during the initial capital raising rounds, allowing them to amass a substantial amount of circulating supply. The problem is that large amounts of tokens in the hands of a few create centralization, which is currently one of the main drawbacks.

In such cases, projects may implement airdrop to balance token distribution.

Attracting investment

When a project is launched and implemented by airdrop, the generated buzz, if successful, helps increase the price of the token because the recipients have “skin in the game” and aim to promote the project in the best light. Especially in today’s Internet economy, where any interaction metrics can be measured and used to attract investors, such as trendy Google search terms, mentioning brands on social media, and the number of followers in the community on Twitter and Telegram. Therefore, airdrop, which significantly and provenly increases community engagement, could seriously increase the overall capital of the project.

Finally, it should be noted that airdrops are directly related to the very concept of ownership, which is the center of Web 3.0. Imagine being rewarded as an early user with Uber shares because you were one of the first to try the transportation service or, in the case of Airbnb, because you tried a new accommodation concept.

The idea seems unattainable in the traditional financial world, but in the crypto space, it makes sense because it does not neglect the ordinary user and does not view him as an object but as a critical link in an inclusive system.

For assistance with the registration process of a cryptocurrency company, please get in touch with our Russian lawyers.

Related: Open a llc company in Russia

Get help starting your business.


You may also like:

Business manager service in Russia

How service of Business manager work?What is include in service and can we add services on later stages? How to start cooperation? For how long we need business manager?What this service brings to clients is: 2000+ businesses Helping entrepreneurs turn ideas intobusinesses over 2000+ times in Russia. 1500+ consultations Providing access to our independentnetwork of attorneys over…

Continue Reading Business manager service in Russia

How to (Gradually) Become a Different Company

A number of recent headline-grabbing announcements of divestments and split-ups by companies such as HP (spinning off its PC and printer businesses), GE (the sale of its appliances business to Electrolux), Bayer (the flotation of its MaterialScience chemicals business), and Royal Philips (its separation into two autonomous companies, Lighting and HealthTech) are putting the spotlight…

Continue Reading How to (Gradually) Become a Different Company

Amazon, Whole Foods, and the Future of the (Old) New Economy

Amazon is buying Whole Foods Market in a deal worth $14 billion, and perhaps the biggest question is what the deal says about the future of an approach to business, branding, and organizational culture that the two iconic companies have come to represent. Some observations that could shed light on this include, first, that with…

Continue Reading Amazon, Whole Foods, and the Future of the (Old) New Economy

Disney Buys Marvel: Designing 3D Brands

Many comic fans around the world, my eldest son John included, will bemoan today’s announcement that the Disney entertainment zaibatsu will swallow up Marvel Comics and its 5,000 characters for $4 billion. Years ago I, too, spent my hard-earned shoveling money on Spiderman, The Hulk, Fantastic Four, and especially Iron Man. (I’ve seen all their…

Continue Reading Disney Buys Marvel: Designing 3D Brands

Growing for Broke

    Look, you’ve got to grow. It’s what our economy is all about. Hey, it’s what our country is all about! Certainly, it’s what drives me. My father, Constantine Anaptyxi, came to America from Greece because he saw big opportunities here. He worked hard, took a few risks, and realized his dreams. I came…

Continue Reading Growing for Broke

Can Science Be a Business?: Lessons from Biotech

In 1976, Genentech, the first biotechnology company, was founded by a young venture capitalist and a university professor to exploit recombinant DNA technology. Thirty years and more than $300 billion in investments later, only a handful of biotech firms have matched Genentech’s success or even shown a profit. No avalanche of new drugs has hit…

Continue Reading Can Science Be a Business?: Lessons from Biotech

Merger Model in M&A Investment Banking

2000+ businesses Helping entrepreneurs turn ideas intobusinesses over 2000+ times in Russia. 1500+ consultations Providing access to our independentnetwork of attorneys over 1500 times. 90+ liquidations Helping companies to close down operations in the smooth way Merger Model in M&A Investment Banking The mergers and acquisitions (M&A) group in investment banking provides advisory services on either sell-side or buy-side transactions. Sell-Side…

Continue Reading Merger Model in M&A Investment Banking

Template Checklist for Legal Due Diligence

2000+ businesses Helping entrepreneurs turn ideas intobusinesses over 2000+ times in Russia. 1500+ consultations Providing access to our independentnetwork of attorneys over 1500 times. 90+ liquidations Helping companies to close down operations in the smooth way This checklist sets out documents and information to be provided for the pruposes of legal review of the target…

Continue Reading Template Checklist for Legal Due Diligence

Merger Model in M&A Investment Banking

2000+ businesses Helping entrepreneurs turn ideas intobusinesses over 2000+ times in Russia. 1500+ consultations Providing access to our independentnetwork of attorneys over 1500 times. 90+ liquidations Helping companies to close down operations in the smooth way Merger Model in M&A Investment Banking The mergers and acquisitions (M&A) group in investment banking provides advisory services on either sell-side or buy-side transactions. Sell-Side…

Continue Reading Merger Model in M&A Investment Banking


Related searches:


Services of Russian lawyers in Russia and UAE

Open a Company in Russia
<a href="https://russianlawyers.eu/service/open-a-company-in-russia/">Open a Company in Russia</a>
Share: