The landscape of Artificial Intelligence (AI) and cryptocurrency intersected in a powerful way following Nvidia’s stellar second-quarter earnings report. This report not only outperformed expectations but also propelled the value of AI-related cryptocurrencies to new heights, affirming a strong bullish sentiment within the AI sector.
Exceeding Expectations: Nvidia’s Q2 Triumph
Nvidia (NVDA), a leading player in the semiconductor industry, left both analysts and industry observers astounded with its second-quarter revenue figures, which surpassed all forecasts. The actual revenue of $13.51 billion far exceeded the predicted $11 billion, as well as the estimated $11.19 billion. Additionally, the chipmaker’s earnings per share for the same period stood at $2.70, comfortably surpassing the expected $2.08 per share. Looking ahead, Nvidia’s projection for third-quarter revenue stands at an impressive $16 billion, with a minor margin of error of just 2%, significantly higher than the $12.59 billion estimated by analysts.
Shifting Paradigms: Accelerated Computing and Generative AI
Jensen Huang, the visionary founder and CEO of Nvidia, shared his insights in a press release, shedding light on the ongoing transition within companies towards accelerated computing and generative AI. Huang emphasized that corporations worldwide are embracing accelerated computing and generative AI, indicating a shift away from conventional computing approaches. His statement, “The race is on to adopt generative AI,” underscores the competitive drive among companies to harness the potential of AI-driven innovation.
Token Surge: FET, GRT, INJ, RNDR, and AGIX
The ripples of Nvidia’s impressive performance extended to the cryptocurrency market, particularly within AI-related tokens. Tokens such as FET, GRT, INJ, RNDR, and AGIX experienced substantial gains, each surging by more than 4% over a 24-hour period. This surge in token value reflects growing investor confidence in the AI sector’s potential for sustained growth.
Reinforcing Bullish Sentiment: Nvidia’s Optimistic Outlook
Nvidia’s second-quarter report not only reaffirms its bullish stance on the future of AI but also provides continuity to the optimistic narrative it presented earlier this year. In May, Nvidia’s revenue projections exceeded expectations and set the tone for a positive outlook for the AI industry. This, combined with the increasing integration of AI into mainstream applications, has propelled AI-related cryptocurrencies to upward momentum.
Market Response and Share Price Movement
The reverberations of Nvidia’s earnings announcement were palpable in the stock market. Following the report’s release, Nvidia’s shares surged by more than 7% in after-hours trading, reflecting the market’s enthusiastic reception. In the lead-up to the earnings release, the company’s shares had already climbed by around 3%. Remarkably, Nvidia’s shares have appreciated by over 200% this year, underscoring its position as a frontrunner in the AI and semiconductor sectors.
In conclusion, Nvidia’s impressive second-quarter earnings report not only shattered predictions but also invigorated the AI industry’s bullish sentiment. As businesses increasingly pivot towards accelerated computing and generative AI, and as AI-related tokens experience remarkable gains, the AI revolution is undeniably gaining momentum. With Nvidia at the helm, the trajectory of AI and its associated technologies holds immense promise for the future.
In little over three months, a mystery Bitcoin wallet has risen to become the third largest holder of Bitcoin (BTC) in the world, prompting some outlandish assumptions about its owner.
BitInfoCharts, a cryptocurrency analytics portal, reports that the wallet address first received Bitcoin on March 8. The wallet accumulated an astonishing 118,000 BTC over the course of the following three months and two weeks, which is equivalent to $3.08 billion at the current exchange rate.
In less than four months, the secret wallet has accumulated 118,000 BTC. There has been a considerable amount of speculation generated by the quick and large accumulation of Bitcoin within a single wallet address.
Some people claim it’s most likely a cryptocurrency exchange transferring money, while other outspoken individuals on Crypto Twitter have presented a wilder notion, claiming BlackRock is the “prime suspect.”
In the past three months, an unidentified address has collected more than $3 billion in #Bitcoin.
The main suspect?
On May 16th, 2023, the first significant transaction involving 3400 BTC was place. Almost precisely one month later, on June 15th 2023, BlackRock applied for its seat as a Bitcoin ETF. pic.twitter.com/TdFuUkELuH
Although there is no concrete proof to back the claim, others have voiced their support by sharing images of a big black rock.
According to BitInfoCharts, Binance and Bitfinex purportedly control the two biggest Bitcoin cold wallets in the world right now.
The unidentified Bitcoin whale wallet comes in third, and another cold Binance wallet follows it in fourth.
BlackRock created a stir in the cryptocurrency market on June 15 when it submitted an application for a spot Bitcoin ETF product, which would be the first of its type in the US if approved by the Securities and Exchange Commission.
Following BlackRock’s application, many other Wall Street powerhouses—including Fidelity, Invesco, Wisdom Tree, and Valkyrie—filed applications for comparable spot products.
The possibility of a spot Bitcoin ETF sent cryptocurrency researchers into a frenzy, prompting many to share their positive forecasts for the price of bitcoin. Fundstrat’s head of research, Tom Lee, said that after the coin’s halving event in April 2024, the price of one bitcoin might reach $150,000.
The colossal e-commerce platform Shopify has connected with Solana’s payment system Solana Pay.
“Solana Pay on Shopify opens up millions of merchants to a more dynamic and efficient payment choice, while consumers get the convenience and increased utility of being able to pay for goods and services with digital dollar currencies from the vast network of merchants using Shopify,” said Josh Fried, Head of Commerce Business Development at the Solana Foundation.
In February 2022, Solana Labs introduced Solana Pay to enable businesses to accept cryptocurrency payments from customers. Solana Pay removes bank costs, chargebacks, and holding periods by allowing buyers and sellers to transact directly using USD stablecoins that are Solana compatible.
Web3 changes on Shopify
According to the website for the platform, Shopify has facilitated over $444 billion in commercial activity and is accessible in 170 countries. Other steps taken by the company toward web3 include enabling retailers to sell NFTs directly to customers and to provide NFT-based loyalty benefits.
In the wake of Shibarium’s tumultuous debut, the team behind the network has been resolute in their efforts to overcome challenges and set the stage for scalability and reliability. In a recent update, lead developer Shytoshi Kusama unveiled an eagerly anticipated initiative: the implementation of the “ShibPaper.” This strategic move represents a pivotal stride towards realizing Shibarium’s ambition of establishing a “decentralized digital nation state.”
Navigating the ShibPaper
On August 22, Kusama took to the digital pulpit to announce the imminent commencement of the ShibPaper implementation, scheduled to commence on August 23. This strategic endeavor marks a decisive push to propel Shibarium closer to its destination ofcrafting a decentralized digital realm before the year’s end.
Unveiling the ShibPaper
The ShibPaper, a subject of fervent discussion within the Shiba Inu community, emerged from the shadows. In a tweet dated August 18, developer Kaal Dhairya cast a spotlight on this document, christening it as the very “foundation” underpinning Shibarium’s journey towards a decentralized digital nation.
Kusama, the architect of the ShibPaper, affectionately dubs it as “the most comprehensive decentralization document the world has ever seen.” At its core, the ShibPaper takes the shape of a whitepaper that intricately maps out the ecosystem’s grand vision of birthing a “Shiba Inu State.” This envisioned state is envisaged as a guiding “beacon,” illuminating the global path towards decentralized principles.
The Heart of the Shiba Inu State
Pivotal to the ShibPaper’s framework are two cardinal elements: the Canine Code and the Hound’s Constitution. These “foundational scripts” are poised to serve as the guiding legal compass for the inhabitants of this new state, affectionately termed “Shibizens.”
The Shiba Inu State seeks to foster virtues of loyalty, unity, and service among its populace. Moreover, it aspires to kindle a profound sense of collective purpose and identity within the Shibizens.
Pioneering Future Trajectories
While the current governance of the Shibarium ecosystem revolves around tokens such as SHIB, LEASH, TREAT, and BONE, the ShibPaper introduces the intriguing possibility of successors to these tokens. The document tantalizingly hints at the introduction of future native tokens into the ecosystem.
Shibarium’s unique approach to these tokens adds a distinctive layer. The ecosystem is dedicated to anchoring both current and upcoming governance tokens with tangible assets, all underpinned by the watchful eye of blockchain smart contracts, ensuring unswerving financial integrity.
Forging the Path Ahead
As the Ethereum layer-2 network emerges from the shadows of adversity, the team is diligently honing its functionality for a more stable and user-friendly experience. Although the network is not yet fully accessible to the public, Kusama’s announcement of fortified and optimized blockchain functionality alludes to an imminent reopening.
In response to previous trials, the development team has introduced a novel monitoring system and supplementary fail-safes. These measures stand as bulwarks to shield users’ funds against the turbulence of potential future traffic surges.
Glimpsing Shibarium’s Horizon
Amidst the echoes of its challenging inception, Kusama remains sanguine about Shibarium’s horizons. He envisions that the protocols, projects, and services crafted atop Shibarium’s infrastructure will be the true beneficiaries and driving forces of its triumph. Drawing a parallel to Ethereum’s thriving ecosystem, Kusama envisions a myriad of options for users within Shibarium’s realm. Yet, he underscores the paramount importance of individual research and due diligence in the onward journey.
Conclusion
Shibarium’s voyage, from its rocky inception to the forthcoming implementation of the ShibPaper, paints a vivid panorama of resilience and tenacity within the Shiba Inu community. As the ecosystem charts its course towards the realm of a decentralized digital nation, the ShibPaper serves as a testament to the steadfast commitment to transparency, governance, and the overarching ideals of blockchain technology.
Bybit, the third-most popular cryptocurrency exchange in the world, has teamed up with the American University of Sharjah (AUS) to give outstanding students scholarships of over $272,000 (AED 1 million).
Bybit and AUS collaborate
The scholarship program comes after Bybit and AUS announced their cooperation in June of this year. The first agreement made between the parties was to aid 20 students in their academic and research endeavors related to the growth of fintech.
There were 38 beneficiaries in all, including 29 students who were already enrolled and 9 new first-time students.
The plan was discussed by Dr. Fadi Aloul, the Dean of the College of Engineering at AUS, who stated:
“AUS is conscious of its vital role in developing professionals who possess the skills and technical knowledge that allow them to flourish in dynamic markets and growing industries. AUS is a center of excellence and research and a catalyst for change. Additionally, we think it’s crucial to collaborate closely with our business partners in order to address their demands and eliminate any gaps between academics and industry. Our collaboration with Bybit and the creation of the AUS-Bybit Fund Scholarship will provide our students more opportunities in the fintech and blockchain sectors in an ever-expanding digital world.”
Along with funding the scholarship program, Bybit is also providing AED 100,000 to support the first AUS-Bybit Inter-College Hackathon with the topic “Artificial Intelligence in Crypto.”
Scholarship from the AUS-Bybit Fund
The scholarship program was developed to encourage students to actively contribute to the development of cryptocurrency and blockchain. Its main objective is to give students the crucial financial assistance they need to complete their studies and conduct research in order to develop decentralized financing.
The AUS-Bybit Fund Scholarship winners were carefully selected based on a number of factors, including their academic performance, GPA, and financial need. Students must also be predominantly enrolled in programs relating to computer engineering and computer science, according to another criteria. These award winners represent a broad group, each of them exhibits great potential and a keen interest in the fintech and blockchain industries.
The scholarship, which has a total endowment of AED 1 million, will pay 25% of their tuition for the next Fall 2023 and Spring 2024 semesters.
The co-founder and CEO of Bybit, Ben Zhou, commented on the scholarship program:
“We are beyond excited to complete the specifics of our scholarship fund to help talented students at AUS. We are also grateful that AUS and Bybit have fostered a common goal of supporting the next generation of blockchain and fintech pioneers over the past several months. The 38 awardees’ pioneering enthusiasm makes me go back to my origins. I’m hoping that this grant will help them on their explorations and inspire a wave of innovation in the UAE that will influence the development of digital assets throughout the world.“
Prior to the scholarship program, Bybit introduced a Wealth Management product in August to provide clients with individualized solutions and the possibility of significant returns in a risk-reduced environment.
The governance token of Altitude, ALTD, may be farmed to demonstrate liquidity for supported tokens. ALTD token owners can get gALTD, Altitude’s governance token, by locking their tokens. Altitude’s governance protocol allows gALTD holders to vote and submit suggestions.
Altitude will reserve 5% of the whole $ALTD supply for tactical airdrops, in accordance with its tokenomics.
Is there an airdrop of Altitude ($ALTD) tokens?
Prior to the launch of their “Alty’s Adventure” mainnet, Altitude has confirmed that they would conduct an airdrop of the $ALTD token. Alty’s Adventure is a public community event that will begin on April 18, 2023, and terminate when Altitude opens their mainnet. We may infer from their statement that this is their “first” community effort that is available to everyone that there will be other airdrops in the future.
An exclusive community campaign called “The Climb” will be added to the “Alty’s Adventure” campaign.
How to receive the potential airdrop of Altitude ($ALTD) tokens?
To get the Altitude ($ALTD) token airdrop, follow these steps:
Obtain testnet tokens
To pay for gas on the Altitude testnet, you will require testnet tokens. To begin, obtain AVAX tokens on the Avalanche network’s testnet here. Then, obtain BNB Chain testnet tokens here, here, or here. Get testnet tokens on the Metis network here, to sum up.
Get $ALTD testnet tokens
Access the Altitude faucet and request for testnet $ALTD tokens for the Avalanche, Binance (BNB), and Metis networks.
Connect the BNB network with $ALTD
Make sure you are on the Avalanche Fuji Testnet and connect your wallet to the Altitude testnet. Altitude testnet now supports testnet tokens for $ALTD, $ABT, and $USDC. $ALTD should be transferred from other networks to the BNB network.
Link the Metis network with $ALTD
Repeat step 3 above, but this time connect the Metis network with a bridge made of $ALTD from other networks. As well as receiving tokens from the Avalanche network, you may transmit tokens from the BNB and Metis networks.
Bridge to bridge transfer of testnet $ABT and $USDC tokens
Follow steps 3 and 4 again. This time, move the testnet $ABT and $USDC tokens between several networks.
Add liquidity to pools
Visit Altitude’s Pool. Select the number of tokens you want to deposit, then pick a pool from the list. Repeat the process for several other pools. Go to “Your Pools,” choose the pool you want to withdraw liquidity from, and then click “Remove.” Click “Remove Liquidity” after selecting the amount of liquidity you want to withdraw.
Deposit to farms
Go to Altitude’s Farm and deposit your tokens, just like in step 6 above. Withdraw them from the farm afterwards.
Stake $ALTD
Check out Altitude’s Stake page. Click “Stake” after selecting the quantity of $ALTD you want to stake. As a reward for staking, you will get $gALTD. Your $gALTD balance is displayed under the “My Voting power” section. You will eventually be able to vote in governance elections using $gALTD.
Complete quests on Zealy
Visit the Zealy Questboard at Altitude. Follow their social media profiles and provide material for Altitude are just a couple of the social tasks on the Questboard.
What exactly is Altitude?
To ease the limitations of omnichain activity, LayerZero created a cross-chain communication architecture. On LayerZero, Altitude creates a native asset bridge. The goal of Altitude is to provide Web3 users with access to a streamlined transaction procedure and to encourage cross-chain liquidity across blockchains. Altitude with Secured Guaranteed Finality allows DeFi customers to move assets with increased security, low bridging costs, and lightning-fast transactions.
In order to control its usefulness and governance, Velocore employs two tokens, $VC and $veVC. Using the ERC-20 utility token $VC, the system pays liquidity providers through emissions. The ERC-721 governance token $veVC, which is a non-fungible token, is used for governance by Velocore. Every $VC holder has the option to vote-escrow their tokens in return for a $veVC (also known as a veNFT).
There is a locking mechanism on $VC tokens. For $VC tokens, the lock period may last up to 4 years. The number of $veVC tokens received in exchange increases with the length of the lock period. The voting power and benefits for the $veVC holder increase with the length of the vesting period.
60 million dollars in VC were available initially for Velocore at launch, and 7.5% of that amount will go toward recognizing and rewarding its contributors. For more information, see Velocore’s Tokenomics.
Is there an airdrop of Velocore ($VC) tokens?
In April 2023, Velocore conducted an airdrop to mark the occasion of its zkSync debut. Those who qualified were given a POAP that permitted them to submit claims for up to 5,550 $VC. After the full introduction of the Linea Mainnet, Velocore intends to introduce Velocore V2 to the platform. The team could conduct an airdrop to commemorate the release of Velocore V2 based on the popularity of their last airdrop. The team has so far made it appear as though they would run a Galxe campaign and could have a prototype ready for the DeFi event in June 2023. There are a few things you may do to get ready in the interim.
Your wallet must be connected to the Velocore Questboard
Join Velocore’s Discord by clicking “Claim Reward” on the quest board.
Join Twitter, follow, like, comment, and retweet to post
Be sure to like, comment on, and retweet Velocore’s posts on Twitter. Click “Claim Reward” after that.
Send out a tweet about Velocore
Post a Tweet about Velocore, then click “Claim Reward” on the questboard to get your reward.
Clap the story on Velocore’s Medium website
Click “Claim Reward” after visiting the Medium website, clapping at least one of their posts.
Invite friends to Velocore
To create your invite link, click “Invite” on the questboard. Invite as many as 1, 5, 10, 100, or 200 new people to the quest page to earn XP and more Discord roles.
What exactly is Velocore?
A unique, high-performance flywheel called Velocore was created by combining the best DEX methods. The Layer-2 protocol zkSync Era, which scales Ethereum using ZK technology, is the foundation of Velocore. The goal of Velocore is to offer customers a quick, safe, and effective means to trade assets while reducing transaction costs and slippage and supporting a variety of protocols for the zkSync era environment.
In the meantime, ConsenSys’ Linea zkEVM layer 2 protocol is starting a new path with Velocore. This new endeavor, which will be based on the future Velocore V2 system, will be separate from the existing Velocore that utilizes the zkSync Era. After the Linea Mainnet is fully launched, Velocore V2 will be officially launched on the platform.
When Velocore started in the zkSync period to resounding success, it already airdropped POAPs to fans. When Velocore V2 appears on Linea, it is thus probable that Velocore will do another airdrop!
The native currency of the Venom blockchain, $VENOM, has a variety of uses. Transaction fees are paid using it, which supports network upkeep and pays validators. Additionally, it protects the network via a proof-of-stake system and enables network users to fund validators through DePools staking.
The $VENOM coin has an unlimited supply, according to its whitepaper. With a 1% predicted yearly inflation rate, it has an inflationary model. The Venom Foundation is, however, looking for methods to make the switch to a deflationary paradigm.
How to Receive the $VENOM Token Airdrop?
Interacting with the Venom Network Testnet is the best way to get the $VENOM airdrop. Here is a detailed instruction:
Make a Venom wallet
Install a Venom Wallet by going to the Venom Network Testnet. At the upper right, pin the wallet to your Google Chrome extension. To receive 50 testnet $VENOM coins, link your Twitter account to your Venom wallet.
Obtain Testnet $VENOM Tokens
Log in with your Venom Wallet on the Task page. To receive 50 testnet $VENOM, connect your wallet, Twitter account, and follow Venom Foundation.
By doing other activities on the Faucet page, you may earn more testnet tokens. To get more testnet Venom, you’ll have to do a variety of activities.
Complete Venom Foundation tasks
Join Telegram and subscribe to Venom Foundation’s YouTube channel on the task page. By clicking “Mint NFT” when that is complete, you may retrieve your NFT.
Accomplish tasks in Venom Wallet
Access the task page. Send at least 1 token of the VENOM cryptocurrency to 0:077873f1453fa67b0f1ce77f1e806675acd19c4694b9738be61fd406618f2f7a. Then select “Mint NFT”.
Complete Web3.World tasks
Join the Web3.World Telegram Channel on the task page, then trade any token accessible on testnet.web3.world for any other token. Mint the NFT after that.
Use Venom Bridge
Access the task page. Participate in the Venom Bridge Telegram channel. Afterward, transfer tokens from Venom chains to EVM chains. Visit https://testnet.venombridge.com/bridge to link your Venom and EVM (such as Metamask) wallets first. Choose “Venom Testnet” and “Binance Smart Chain” accordingly for the “From” and “To” boxes. Turn off the “Swap TVENOM to pay BSC gas” option and choose the number of Venom tokens you wish to transfer. Accept the transaction by clicking “Continue”. Following that, select “Only My” under the “History” tab to locate that transaction. For the Binance Smart Chain to release the transfer, click the transaction and then “confirm.” Do the transaction later by switching from Binance Smart Chan to Venom Testnet, or do it in reverse.
Claim Snipa Finance NFT
To get your free Snipa Finance NFT, go to the task page and do the tasks listed there.
Stake Venom
Click the task page. Visit https://testnet.venomstake.com with your Venom wallet connected. Click “Stake” after selecting the wagering amount. By selecting the “Unstake” option, the quantity you want to unstake, and then clicking “Unstake,” you may also unstake your Venom at any moment. Click “check” on the task page; you might need to wait a while for the checking to be successful once the job has been finished. then mint the NFT.
Trade NFTs on Oasis Gallery
On the task page, you can find the instructions. On Venom, there is an NFT market called Oasis Gallery. Buy any NFT here from Oasis Gallery. Select the NFT you want to purchase, sign in with your Venom wallet, then click “Buy now” to complete the purchase. then click “Check” on the task page after returning there. Go to the “My NFTs” option on the Oasis Gallery website and then post your NFT for sale there. Click “Put for sale” after selecting your NFT. Select a sale price, then approve the deal. Click “Check” one more on the task page, then mint your NFT.
Complete VenomPad tasks
Access the task page. Keep up with VenomPad on Twitter. When all the tasks have been finished, click “Check.” minte the NFT.
Purchase NFT on Nümi
Visit the task page. Watch the video, tweet about Nümi, and purchase any NFT on Nümi.
Airdrops of Nümi tokens shall be sent out to anybody who created Venom wallets before to June 2023. To view it, use the refresh button at the bottom of your wallet. If you don’t already have any Nümi tokens, you can exchange them for VENOM tokens at Web3.World. After creating an account and having some Nümi tokens, you may purchase an NFT on the Nümi Marketplace. mint the NFT at the end.
Access the task page. Tweet about Gravix. Open a long/short position after logging onto https://app.gravix.io with your Venom wallet connected. But in order to start a position, you’ll need USDT. Visit https://testnet.web3.world/swap and first exchange some $VENOM for $USDT if your Venom wallet is empty of USDT. Mint your NFT lastly.
Visit the task page for Venom Burn. On Twitter, follow Venom Burn. Then, burn any quantity of VENOM for any project at https://testnet.venomburn.com. Your NFT should be mint.
Complete OneArt tasks
Head over to the OneArt task page. On Twitter, follow OneArt. Then, use the seed phrase to import your Venom Wallet using the OneArt mobile app that can be downloaded here. A popup will appear requesting you to mint your NFT if you have at least three VENOM; select “Mint” to proceed. Go return to the task page and mint your other NFT after you have minted your OneArt Welcome NFT.
Wrap $VENOM tokens
Check out the Swap page. Select the quantity of VENOM and WVENOM tokens. When you’re ready, click “Wrap VENOM” to confirm your purchase.
Provide liquidity
Click “Add Liquidity” after going to “Liquidity Providing”. Connect to the pool, authorize the transaction, enter the desired amount, and then continue. After that, add tokens to the wallet and confirm the transaction. Click “Supply tokens” after that to confirm the transaction.
Deposit into farming pools
Pick the USDT/WVENOM pool under the “Farming” option. Next, choose the lock-up duration and input the deposit amount. When asked, click the deposit button to confirm the transaction in your Venom Wallet.
Finish tasks to get NFT rewards
Connect your wallet to https://venom.network/tasks on a regular basis. Complete any fresh tasks; more will be added shortly!
How to mint Venom NFTs
For using the Venom testnet and for demonstrating your participation with the ecosystem, you can mint Venom NFTs as a reward. They could be essential for future airdrop prizes! Here’s a how-to list in detail:
Choose “Complete tasks” from the menu at https://venom.network/tasks. Twitter users should follow Venom Network and tweet about the Venom Testnet. To mint your Venom NFT, click “Mint” after that.
Once you have their address, you must transfer any quantity of Venom tokens to them. Once you’ve completed this, click “Check” so that you may mint your NFT.
What exactly is Venom Foundation?
A new layer-0 blockchain called Venom Foundation proposes a world economy with decentralized, blockchain-based financial systems. They are a new participant in the real-world assets (RWA) with the transparency of a blockchain (appchain) field for financial application-specific blockchains. The financial regulators in Abu Dhabi have complete control over them.
The Venom Foundation’s design, which is based on its own Threaded Virtual Machine (TVM), is essentially a modular blockchain. This enables dynamic sharding and an asynchronous communication paradigm for the effective execution of smart contracts.
The Venom blockchain should be able to manage interactions between accounts more efficiently than EVM-based networks, allowing for more parallel processing and faster transaction times. The objective of validators is to provide the backbone for the next generation of digital services and products as the network faces significant loads, splitting into parallel groups and handling transactions through “split events.”
Since Bitcoin’s launch in 2009, cryptocurrency has seen a tremendous transformation. Initial Coin Offerings (ICOs), which formerly dominated the fundraising landscape, have changed as the market has matured. Airdrops, when cryptocurrency projects give out tokens to holders for free rather than holding ICOs, are a recent development. We’ll go into tokenomics and token distributions, examine the circumstances that led to the growth of airdrops, and then highlight what investors should look for in a cryptocurrency project based on these considerations.
How do Airdrops work?
As the name implies, airdrops entail the free distribution of tokens to a specified group of users, frequently current owners of a certain cryptocurrency. This allocation may be determined by a number of factors, including wallet addresses, transaction history, or community involvement. Due to a number of variables, such as governmental crackdowns on ICOs and shifting dynamics in the cryptocurrency market, airdrops are becoming more and more popular.
As an experiment to possibly replace the Icelandic Króna and Bitcoin, Iceland introduced Auroracoin in March 2014. Each citizen received 31.8 AUR, then 318 coins, then 636 coins in the first airdrop in the history of cryptocurrency. The goal of this and future airdrops was to introduce the token to a market and promote it. Since then, a number of cryptocurrency projects have employed the airdrop technique to increase awareness, foster communities, and distribute tokens. Sending free tokens to owners of a certain cryptocurrency encourages them to find out about and contribute to the new venture.
ICOs to be Replaced by Airdrops?
The regulatory monitoring of ICOs is one of the major factors contributing to the increase of airdrops. Many projects previously used initial coin offerings (ICOs) to raise money by giving investors tokens in return for cryptocurrencies or fiat contributions. However, several governments have placed stronger limits on ICOs in response to increased regulatory scrutiny and worries about fraud and scams. Due to this, ICOs are a more difficult and expensive method for obtaining money. In contrast, airdrops give projects a mechanism to distribute tokens without holding a formal sale and avoid the legal restrictions that apply to initial coin offerings (ICOs).
The evolving dynamics of the cryptocurrency market are another factor driving the growth of airdrops. Investors and customers have grown more demanding as the sector has matured. It is no longer enough to just raise money through an ICO. With the help of airdrops, projects may reward early adopters, encourage user engagement, and build a vibrant community. Free token distribution enables projects to attract users’ interest, involvement, and loyalty, all of which can be beneficial in the long term.
Not only are phishing and hacking risks to be aware of, but airdrops may also have financial and legal repercussions. Airdrops could be seen as taxable income depending on the nation in which you live. As a result, not reporting them might result in fines and penalties.
When assessing a crypto project, tokenomics and token distributions are also essential considerations. The economic structure of a cryptocurrency is referred to as tokenomics. This covers the availability, use, and utility of the token. An effective tokenomics model may incentivize users to hold tokens, use them, and engage with the ecosystem. This may increase interest in and value of the token. The allocation and distribution of tokens among stakeholders, on the other hand, is referred to as token distribution. Stakeholders include the team, advisers, investors, and the community. Some initiatives choose a token that is entirely community owned. Others choose to save large sums for early backers, team members, and treasuries in order to guarantee the project’s long-term viability.
Since each model has benefits and disadvantages of its own, we are unable to determine which is superior.
In my perspective, projects that have a carefully considered tokenomics model and a clear token distribution strategy are more likely to be successful in the long run. Everyone enjoys a free meal, so airdrops may be quite helpful in raising awareness. It is not fully free—users are required to participate in network activities or test software—but it attracts attention on well-known crypto media platforms like Twitter, Discord, and Telegram.
New and innovative projects are continuously being offered as the crypto business grows, creating a competitive atmosphere where certain initiatives struggle to stand out in the thriving crypto community.
Cryptocurrency airdrops have become a well-liked marketing tactic in the midst of this fierce rivalry. They work with initiatives who want to create a big impression on the cryptocurrency industry and raise awareness for their impending coin, item, or service.
In this article, we’ll investigate the concept of airdrops, dig into its mechanics, analyze the many kinds of airdrops utilized by blockchain projects, look at the motivations behind their use, and critically assess the advantages and disadvantages of these crypto airdrop campaigns.
What Exactly Is A Crypto Airdrop?
A cryptocurrency airdrop is a promotion technique used by projects in the cryptocurrency space to spread word about their fresh digital asset or endeavor. A tiny number of coins or tokens are distributed via cryptocurrency airdrops to wallet addresses that satisfy specific criteria. Cryptocurrency ventures can employ an airdrop to make sure that the community members receive an equitable share of their coins and tokens.
What Sorts Of Crypto Airdrops Are There?
Most crypto initiatives aim to accomplish a variety of objectives, and frequently do so by using a variety of tactics. To enter the crypto ecosystem, crypto projects use four different forms of airdrops. These are:
Standard airdrop – A typical bitcoin airdrop is a public event that is available to everyone who is interested. Typically, all that is needed to get started is to create an account with the project. When the requirements are satisfied, the project gives qualified wallet addresses a tiny amount of the new cryptocurrency. Participants in a typical airdrop must move swiftly to obtain a position due to the restricted number of available spots.
Bounty airdrop – Bounty airdrops are marketing techniques that provide participants in promotional events access to cryptocurrency. These can range from straightforward actions like signing up for a newsletter to posting project-related content on social media sites like Twitter, Facebook, and Instagram.
Holder airdrop – Holder airdrops give rewards to users just for possessing a certain project’s token or currency. When a project experiences a hard fork, separates into two platforms, or debuts on a different blockchain, these airdrops are frequently deployed. Participants’ wallet addresses are used to predetermine how much cryptocurrency will be airdropped to them.
Exclusive airdrop – In an exclusive airdrop, a project chooses a particular set of people to give tokens to. This style of airdrop is more focused and goes to people who have a close connection to the project. The degree of their commitment, the amount of time they spent working on the project, or their participation in extracurricular activities may all be considered as selection criteria. For instance, the Uniswap airdrop in September 2020 gave UNI tokens as a special gift to over 250,000 early exchange customers.
How Does A Cryptocurrency Airdrop Operate?
The first call to action when a blockchain or cryptocurrency project decides to launch through airdrop is to begin a public campaign. The team advertises cryptocurrency initiatives on discussion boards and social media sites including Twitter, Reddit, and Discord.
The team chooses the kind of crypto airdrop to deploy and develops a list of possible token beneficiaries throughout the open campaign. The campaign may be used by cryptocurrency initiatives to learn more about the people who could be interested in their goods or services.
The airdrop operation is then automated by the project using a smart contract or a self-executing application. The team then chooses a time for the smart contract to airdrop the chosen participants’ chosen tokens or currencies from the company’s treasury wallet. The team shares the transaction block results of the airdrop in order to earn the confidence of the community it has developed during the campaign.
When you receive a certain number of “free tokens,” regardless of whether you requested the airdrop in the first place, you will really need to pay tax on them since, in some nations, such as the United States, airdrops are seen as income. The cryptocurrency in airdrop recipients’ wallets also has transaction costs.
How Do You Take Part In Crypto Airdrops?
You can choose to take part in standard and bounty airdrops from the categories of crypto airdrops previously covered, and depending on your current involvement in a project, you can also be eligible for holder and exclusive airdrops.
Finding the project before it launches is necessary if you wish to take part in airdrops. Websites like DappRadar and Airdropalert keep tabs on airdrops. Always conduct your own investigation to confirm the legitimacy of the project giving the airdrop after discovering these airdrops.
You only need to enter your crypto wallet address once you’ve satisfied the prerequisites to be eligible for the airdrop. The project will typically let you know when the airdrop has been sent to your cryptocurrency wallet.
The Pros And Cons Of Crypto Airdrops
Pros
Increased user adoption – People may test out new cryptocurrencies without having to make any financial commitments thanks to airdrops. A bigger user base for the project may result from increasing user adoption as a result.
Enhanced community engagement – Users are frequently required to join social media groups or carry out other duties as part of airdrops in order to foster a sense of community. The community may become more engaged and have more lively debates as a result.
Token distribution – Airdrops can aid in the wider distribution of tokens or coins, which can aid in boosting exchange liquidity and trading activity.
Marketing – An inexpensive technique to publicize a project and generate awareness about it is through airdrops. Additionally, they may be used to reward devoted users and provide them incentives to promote the project.
Cons
Misaligned incentives – Airdrops may draw those who are more concerned with getting free tokens or currencies than with helping the project advance. This can result in incentives being misaligned, which would be detrimental to the project.
Fraud – In order to take advantage of the system and acquire free tokens or coins, fraudsters may also be drawn to airdrops and set up phony social media profiles or automated accounts.
Cost – Airdrops might be economical, but they still need time and money to prepare and carry out. Before selecting whether or not to conduct an airdrop, projects must consider the advantages and disadvantages.
