What is a crypto currency Airdrop?

What is a crypto currency Airdrop?

     How to get free tokens on Airdrop?

In cryptocurrency, the term “airdrop” is used to describe a type of distribution event for a cryptocurrency where tokens are distributed to existing wallets. Or more simply, an event where “free coins” or coins purchased during a pre-sale are “dropped” in existing wallets. In other words, the term “airdrop” describes a distribution event that occurs when a cryptocurrency decides to distribute tokens to users for any reason. For example: A distribution event that occurs after an ICO goes live and the smart contract for the ICO sends new tokens to the existing addresses of users who participated in the pre-sale. For example, one buys into an ethereum-based ICO, then on the airdrop date the token is sent to user’s wallets and they can then “add the token” to their Ethereum wallets.

A distribution event after a hard fork or the creation of a new token which results in existing coin holders getting “free coins,” but where the platform being used requires the distribution of tokens. For example, a fork on the Ethereum network that creates a new token on the Ethereum network or another coin’s network (see fork-airdrop hybrids like the Ethereum Classic Callisto Airdrop and the Loopring Airdrop for example). A distribution event where tokens are given to existing holders as a reward for sticking with the cryptocurrency or as an incentive to get people to hold the cryptocurrency or a related token.

How to participate in crypto airdrop?

This can also be done on other blockchains, but Ethereum and Bitcoin are the most used for this airdrop format. Other (often smaller) airdrops require social media posts or you need to contact a member of the team on the Bitcointalk forum. This form is gaining more popularity since September 2017.

  1. An Ethereum Wallet:
    not one that is on an exchange. It has to be a personal address that is ERC20 compatible because most of the tokens that are airdropped are ERC20 tokens, which are or were originally Ethereum-based ICOs.
  2. The Ethereum Wallet Must be ACTIVE.
    By active, we mean that you have to show at least some human use of it. Lots of airdrops have checks in place to make sure that you aren’t just randomly generating a bunch of addresses and signing them all up to unfairly obtain more coins. This means that if your wallet doesn’t show activity, it might not receive the airdrop. Sometimes, coins will be explicit in what they look for, including some type of balance in the account.
  3. Telegram Account:
    I’m sure there are amazing reasons why Telegram is the chatting tool of choice for many of these ICOs. The coins want to boost the audience count. Usually, these airdrop coins will also require you to sign up for their Telegram accounts. Until you receive the coin in your Ethereum wallet, do not leave the Telegram accounts or you risk disqualification for the airdrop.
  4. Twitter Account:
    Similar to the reasons behind the Telegram account, many of the airdrop coins will also require you to follow them on Twitter. Some of them will even ask you to retweet some tweet.
  5. Email address.
    sometimes airdrops will ask for your email, too. If you don’t feel comfortable with giving them your real email, just create a spam one. Remember the password, though; some of them actually ask you to confirm your email.

Another possible way to get free e-coins is a faucet. This means you get a small amount of free crypto for a longer period of time. Some wallets, crypto casino's or crypto promotion sites run this type of airdrop.

Why would anybody give away free cryptocurrency?

To offer coins for free the people are the product. With doing an airdrop the project creates awareness about their ICO or token. It brings people to the project that otherwise would not have owned or heard about it. It could lead to token price appreciation, since people value a token they own higher then a token they don't own. This is called the endowment effect: "In psychology and behavioral economics, the endowment effect (also known as divestiture aversion and related to the mere ownership effect in social psychology) is the hypothesis that people ascribe more value to things merely because they own them." In addition to that I think people are more likely to buy a token that they previously owned or still own, since they are already familiar with it.

A crypto airdrop would create a community/network of people who own the tokens. If you would list the token distribution after an ICO in a pie graph, a large part of the pie is still owned by the Dev's or project. Another large part is owned by people who joined a pre-sale. And a reasonable part is owned by people who invested in the ICO. An airdrop adds a extra slice to the pie and that slice will have the most people in it. Decred still shows a pie-graph like this example on their homepage.

An crypto airdrop also plants a seed. When you look at Coinmarketcap you will see a list of thousand coins. Just on page one you can see 100 coins listed. However if you have or had a coin that name is still in your brain. The seed is planted and whenever you check coinmarketcap and scroll down, the name of the free e-Coin will jump out and people will check how it is doing. If they see an article that the free e-Token is doing well or bad, they are more likely to click it if they own it or previously have owned it. It's just like advertising.

Article Produced By
Bitcoin Wiki

https://en.bitcoinwiki.org/wiki/Airdrop

 

IBM and Columbia University Launch Two Blockchain Startup Accelerators

IBM and Columbia University Launch Two Blockchain Startup Accelerators

 

 IBM and Columbia University announced the introduction of two new blockchain

startup accelerators as critical components of their center for research, education, and innovation in blockchain technology and data transparency.

IBM Network and Columbia Launch to accelerate industry adoption

The joint venture, part of the Columbia-IBM Center for Blockchain and Data Transparency, will provide 20 entrepreneurs and blockchain network founders worldwide with access to the assets, knowledge, and support they need to build sustainable blockchain businesses and enterprise-grade blockchain networks. IBM’s Network Blockchain Accelerator will expedite the global development of ten later-stage growth companies, and focus on building out an enterprise-grade business network and client base for their blockchain solution.

According to David Post, Managing Director of IBM Blockchain Accelerator, “The possibilities presented by blockchain technology are seemingly endless, and we see strong dedication by technical talent to build game-changing applications.” He believes that adoption is inevitable and “what is also needed to truly bring about this sea change is the right technology and expertise which is why IBM is working with Columbia to help give these early- and mid-stage founders a way to build enterprise-grade networks that can move blockchain innovation forward.”

In contrast, the Columbia Blockchain Launch Accelerator is intended to provide ten pre-seed, idea-stage companies with the necessary expertise and tools on how to build a blockchain startup, as long as it is in affiliation with the Columbia or any NYC-based University. Satish Rao, Executive Director of the Columbia Blockchain Launch Accelerator, expressed confidence that “Early- and late-stage teams will undoubtedly benefit from IBM’s technology resources, expertise and established network coupled with Columbia’s ground-breaking research and talent in blockchain and data transparency, all while benefiting from rapidly growing NYC blockchain communities.”

Beyond Blockchain Tech: Sustainable Business Development

The two accelerator programs will empower companies and their teams with the aid of an expert network of business and technical support teams, workshops from IBM, as well as access to connections to the Columbia research community, student talent pools, and the IBM Cloud technology. As part of the accelerator plan, entrepreneurs will investigate what are the best practices for building a secure and sustainable blockchain network and ecosystem with the guidance of academic, technical, and business tutors from IBM, the Columbia University and other organizations.

Both programs are expected to launch in Q1 of 2019, while IBM Network has already opened nominations. Since they are invite-only, to apply, companies must look for the recommendation of investors, customers or IBM representatives. The Columbia Launch program is designed to help up to seed-funded startups. Upon completion of the accelerator, IBM may decide to enter into strategic partnerships with the firms to assist them with establishing and/or scaling the concepts developed during the program.

Article Produced By
Mauro Sacramento

Mauro is a Portuguese crypto journalist in pursuit of his digital nomad dream. Although he graduated in scriptwriting, he spent the past decade in corporate environments. Now that he's rediscovering what freedom feels like, he can't get enough of blockchain and its decentralization.

https://www.ccn.com/ibm-and-columbia-university-launch-two-blockchain-startup-accelerators/

Facebook to appeal against ICO fine says it’s a matter of principle not to pay 18 mins’ profit

Facebook to appeal against ICO fine – says it's a matter of principle not to pay 18 mins' profit

Get Zucked, basically

Facebook is to appeal the £500,000 fine handed down

in October by the UK's Information Commissioner's Office over the data-harvesting scandal. The penalty – the highest the ICO was able to dole out for the firm's part in the Cambridge Analytica scandal because it took place before GDPR kicked in – equates to about 18 minutes of profit for the firm.

Nonetheless, the Zuckerborg is insistent that no UK data was involved, arguing that not only does this mean it shouldn't have to pay up, but also that it's a matter of principle about the way people behave online. The ICO said when it handed down the fine that, on the information it had, "it is not possible to determine" if Facebook's assertion that only US resident's data was shared with Cambridge Analytica is correct. However, it contended that the personal data of UK users was "put at serious risk of being shared" for political campaigning – and thus issued the enforcement action for failing to do enough to protect that info.

"Therefore, the core of the ICO's argument no longer relates to the events involving Cambridge Analytica." Facebook is arguing that the ICO's reasoning "challenges some of the basic principles of how people should be allowed to share information online" and that this has implications that "go far beyond Facebook". Benckert – taking a real ad absurdum approach – said the ICO's theory meant that "people should not be allowed to forward an email or message without having agreement from each person on the original thread". "These are things done by millions of people every day on services across the internet, which is why we believe the ICO's decision raises important questions of principle for everyone online which should be considered by an impartial court based on all the relevant evidence."

An ICO spokesperson sent us a statement following Facebooks' confirmation it will appeal the fine:

“Any organisation issued with a monetary penalty notice by the Information Commissioner has the right to appeal the decision to the First-tier Tribunal. The progression of any appeal is a matter for the tribunal. We have not yet been notified by the Tribunal that an appeal has been received.” Information commissioner Elizabeth Denham has made it abundantly clear that she would have fined Facebook more if she had been able to, and said that, in particular, its follow-up after it discovered the breach was "less than robust".

She told MPs earlier this month that her team "found some problems with the signing of [Facebook-ordered] authorisations [from organisations]; some of them weren't signed at all". The ICO has also referred other, ongoing concerns about the firm's targeting functions, its monitoring of individuals' browsing habits and interactions, to the Irish Data Protection Commissioner (Facebook's European HQ is in Ireland). Meanwhile, the firm's decision to appeal the UK's fine will do little to bolster goodwill among the nation's lawmakers, especially as Zuckerberg has repeatedly rejected requests to appear in front of parliament's digital committee.

Article Produced By
Rebecca Hill

https://www.theregister.co.uk/2018/11/21/facebook_to_appeal_ico_fine/

Airdrop of Crypto Tokens Hits Regulatory Flak

Airdrop of Crypto Tokens Hits Regulatory Flak

On August 14, 2018, the U.S Securities and Exchange Commission (“SEC”)

issued a cease and desist order (the “Tomahawk Order”) against Tomahawk Exploration LLC (“Tomahawk”) and David Thompson Laurance (“Laurance”) for their actions in connection with an initial coin offering of digital assets called “Tomahawkcoins” or “TOM” (the “Tomahawk ICO”). Tomahawk and Laurance’s actions were problematic for the same reasons cited by the SEC in other recent orders related to digital assets (e.g. the Munchee Order). Consistent with such orders, the SEC determined that Tomahawkcoins are securities because they constitute investment contracts under the “Howey” test. However, what makes the Tomahawk Order particularly noteworthy are the lessons to be gleaned regarding cryptocurrency “airdropping.”

What is Airdropping?

“Airdropping” is the distribution of tokens or cryptocurrencies without monetary payment from the token recipient. The practice of airdropping tokens became prevalent in late 2017 and early 2018 when ICOs began to face stricter regulatory scrutiny. Token airdrops or “free crypto” distributions have been particularly popular in conjunction with ICO marketing campaigns, such as the Bounty Program (“Bounty Program”) offered in connection with the Tomahawk ICO. As part of its Bounty Program, Tomahawk dedicated 200,000 Tomahawkcoins, and offered third-parties between 10-4,000 Tomahawkcoins for activities such as making requests to list Tomahawkcoins on token trading platforms, promoting the coins on blogs and other online forums, and creating professional images, videos or other promotional materials. Ultimately, Tomahawk airdropped more than 80,000 Tomahawkcoins to approximately 40 wallet holders as part of its Bounty Program.

Airdropping as a Section 5 Violation

Under Section 5 of the Securities Act of 1933, as amended (the “Securities Act”), any offer and sale of securities must be registered with the SEC or exempt from registration. Section 5 regulates the timeline and distribution process for issuers who offer securities for sale. In the Tomahawk Order, the SEC found that Tomahawk’s Bounty Program constituted an offer and sale of securities because “[Tomahawk] provided TOM to investors in exchange for services designed to advance Tomahawk’s economic interests and foster a trading market for its securities.” Despite not receiving payment in exchange for the airdropped Tomahawkcoins, the SEC nonetheless found that the airdrops made in connection with the Bounty Program constituted the offer and sale of securities: “a ‘gift’ of a security is a ‘sale’ within the meaning of the Securities Act when the donor receives some real benefit…Tomahawk received value in exchange for the bounty distributions, in the form of online marketing…in the creation of a public trading market for its securities.” By offering and selling Tomahawkcoins without having a registration statement filed or in effect with the SEC or qualifying for an exemption from registration, Tomahawk and Laurance were found to be in violation of Sections 5(a) and 5(c) of the Securities Act.

Potential Consequences of a Section 5 Violation

In light of the Tomahawk Order, it is important to understand the potential consequences of a Section 5 violation, which may include the following:

  1. SEC Enforcement Action:
    In addition to having the power to impose monetary penalties, the SEC can also bar an individual from serving as an officer or director of a public company for a period of several years. Through the Tomahawk Order, the SEC not only imposed a $30,000 penalty (a reduced amount due to Laurance’s inability to pay a civil penalty) but also barred Laurance from acting as an officer or director of a public company or from participating in any offering of a penny stock.
  2. Rescission Rights:
    Under Section 12(a)(1) of the Securities Act, purchasers of securities that were sold in violation of Section 5 of the Securities Act have a right of rescission. This right of rescission is essentially a “put right” whereby the purchasers can force the seller of the securities to buy the securities back at cost plus interest.
  3. Control Person Liability:
    Even if a person did not directly take part in the airdrop, under Section 15 of the Securities Act, such person might still face liability. Under Section 15 of the Securities Act, each person who, by or through stock ownership, agency, or otherwise, controls any person who violates Section 5 of the Securities Act, may also be jointly and severally liable for such Section 5 violation.
  4. Accounting Consequences:
    Potential payments in respect of rescission rights may be required to be booked as contingent liabilities under GAAP, which can negatively impact financial statements and the issuer’s ability to comply with financial covenants under bank documents.

Conclusion

Any company considering airdropping tokens or other digital assets should make sure to work with their securities lawyers to confirm that such actions do not run afoul of federal or state securities laws. Directors and Officers Insurance Policies do often cover these types of claims, but just because someone has car insurance does not mean they should drive recklessly.

Article Produced By
Robert Wernli, Jr.,
Robert Weber
Osama Khan

https://www.corporatesecuritieslawblog.com/2018/08/crypto-tokens-regulatory-tomahawk/

Exclusive Lunar Insight: ICO Performances Are Mostly Unaffected By Bear Markets

Exclusive Lunar Insight: ICO Performances Are Mostly Unaffected By Bear Markets

Introduction: A Statistical Analysis Of ICO Performances
In Differing Market Conditions

These past several months, an analysis of ICO performances in the midst of varying market volatility was conducted by the data science team at Lunar Digital Assets. Intuition would probably lead a typical retail investor to believe that an ICO will perform better in bull markets as opposed to bear markets (and in stable markets which are void of any particular direction).

A SURVEY OF 288 CRYPTO INVESTORS:

At the inception of the idea for this study, we were curious to see what cryptocurrency traders and ICO investors thought regarding the performances in bull and bear markets. So we asked various networks of traders and investors a fairly simple question. The results were astoundingly favored towards bull markets, as most would expect. However, it should be pretty noteworthy that 29% of those surveyed disagreed with the majority. (29% because the 12% that voted for «Anytime» would be investing in bull markets as well.) In hindsight, we probably should have had «I don't know» added to the list of choices.

SURVEY RESULTS: WHEN'S THE BEST TIME TO BE INVESTING INTO ICOs?

  • Bull Markets: 171 (59%)
  • Neutral Markets: 40 (14%)
  • Bear Markets: 35 (12%)
  • Anytime, doesn't matter: 33 (12%)
  • Never: 9 (3%)

In this analysis, we aim to bring credence to or dispel this commonplace notion using statistical analysis and hypothesis testing. We strongly believe that this study is especially helpful in the relatively young market of cryptocurrencies and initial coin offerings, whereas traditional financial markets have a much longer history and established patterns and trends. We will attempt to answer the question that everyone thinks they know, but doesn't really know: Do ICOs really—statistically—perform better in bull markets?

DATA SCRAPING, CLEANING, & EDA

DATA OVERVIEW AND EXPLORATORY ANALYSIS: FINDING RELIABLE DATA IN THIS FRAGMENTED, YOUNG MARKET CAN BE CHALLENGING.

The data for this study was acquired from Coinist, which provided a sample data size of 457 initial coin offerings. Although we are aware that there were many more ICO's conducted, we believe that 457 is an ample size to draw inferences from. Coinist was also the only data source that readily had ROI information (the figures were also spot checked for accuracy), and went as far back as 2013 up until the data the captured in May 2018 when this study was being conducted.

As basis of analysis, we will be using each coin’s Return on Investment (ROI) since the ICO Ending date as a measure for investment performance. Due to the varied nature of ROI across ICOs, I will be using a common logarithmic function (Base 10) of each coin’s ROI as reasonable means of comparison. This is especially useful as we are concerned about relative performance in different market conditions and not an associated scalar value.

CAPTURED DATA: 

  1. Name of Coin
  2. 1-Hour % Change
  3. 24-Hour % Change
  4. Weekly % Change
  5. ICO Date (last day of token sale)
  6. ICO Price
  7. Current Price
  8. ICO Return on Investment (ROI)

DATA CLEANING

We did not find any major issues with the data other than one mislabeled adte for the coin APX. The ICO date was set to May 21, 1970. While cross referencing with other sources, we had determined and fixed the APX ICO date to May 21, 2017. Outliers: NXT's overall ROI of ~24,000% was an obstacle to proper comparison and analysis. Despite being a significant outlier (the next best performer was Ethereum at ~1,900%), we decided to keep this data and regularize it via a common logarithmic function for analysis.

EXPLORATORY DATA ANALYSIS

The goal of EDA is to visualize the data in different perspectives to glean additional insights for further analysis, anomaly detection, and data consistency. In this section, we will visualize the data from a high level. First, we wish to explore the pace of ICOs and visualize the rise of ICO as a means of capital funding: We see a staggering yet unsurprising increase in ICOs in 2017 followed by a decline in 2018 YTD. However, we would not be surprised to see the annual 2018 value exceed 2017’s ending tally. It should be noted that since the data was taken in May, as predicted, the number of ICOs is steadily rising.

MORE EDA: VISUALIZING WINNERS AND LOSERS

In the full article published on Lunar Digital Assets, you can visually see the ROI of ICO's categorized in different segments:

  • Yearly ROI
    Our dataset captures the following years and the associated numbers of ICOs held in that year. The below violin plot provides a visual summary of statistical descriptors of the ROI performance by ICO Year 
  • Monthly ROI
    On a monthly basis, ICOs that end in April have the best median performance but also likelier to perform the worst of any month other than December. Otherwise, there does not seem to be a significant difference in ICO performance based on Ending Month.
  • ROI by Market Conditions:
    Another important distinction to consider when analyzing ICO ROI was whether or not the ICO occurred in a bear, bull, or purgatory market environment. Date ranges were leveraged from Thomas Lee, Head of Research at Fundstrat Global Advisors. Please also note that any date ranges not included are considered “purgatory runs” or what traders like to call «sideways markets.»
  • ROI per Year by Market Environment:
    When taking out the year dimension of the view, the plot suggests very little difference in median ROI performance.
  • ROI of all ICOs in Bull, Bear, and Purgatory Markets:
    The plot suggests very little difference in median ROI performance, but one very odd statistic was that bull markets see more outliers of negative performance and purgatory markets see more outliers of positive performance (likely due to NXT's ROI as the coin had its massive run-up in a purgatory market in 2013).

    It appears that the market conditions do not have a significant impact on the median returns of ICO's. Now we can move on to see if, on average, ICOs perform better in bull markets than in bear markets.

 

METHODOLOGY AND STATISTICAL ANALYSIS 

MEDIANS AND AVERAGES ARE NOT THE SAME!
The primary method of analysis used to assert our assumption is a hypothesis test using a Z-Test. In order to appropriately perform the test, we require that the distribution of the data be unimodal and normally distributed. In our sampling method, the sample size must be larger than 30 and our samples be independent. We find that each market environment contains 173 ICOs during a bull market, 143 during bear markets and 142 in purgatory markets. As a result, our population and ensuing sample sizes will be greater than 30. Moreover, our population samples are assumed to be independent.

To assert our data is unimodal, an Exponential Cumulative Distribution Function was constructed. The theoretical model takes the mean and standard deviation of our ROIs and plots hypothetical data points. We compare this with the actual plot of our ROI data. In the below graph, we find that our real data is closely aligned with the ideal model and thus can be assumed to be unimodal and normally distributed. The goal of our statistical analysis and hypothesis test is to determine whether ICOs, on average, perform better (has a higher average ROI) during a bull market than in a bear market. To accomplish this, we need to construct the confidence intervals and then the hypothesis test parameters.

We begin with establishing a 95% confidence interval to provide insight on the range of differences that we can observe. Taking 100 random samples from the Bull and Bear populations, the difference in the mean is -0.159. At the 95% confidence level, the difference in Logarithmic ROI can range between -0.52 and 0.21. For our hypothesis tests, our statements will be expressed as:

  • H?: μ1 — μ2 = d?
  • Hα  μ1 — μ2 > d?

Where μ1 is the mean bull market ROI and μ2 is the mean bear market ROI. D? will be 0 (zero) to signify the difference in the means. Our null hypothesis posits that there is no difference between bull and bear market returns while our alternative hypothesis posits that there is a positive difference. Our critical rejection region will be [1.64 to infinity]. Following a stratified sampling method, we arrive at the two population means:

  • Mu1 (Bull Market): -0.19
  • Mu2 (Bear Market) -0.04

The Z-Test statistic formula will be the difference in means (μ1−μ2) less D0 divided by the square root of the standard error of both the bull and bear market ROIs. We arrive at a test statistic of -0.717. This value does not fall into our critical rejection region of [1.64 to infinity] and therefore fail to reject the null hypothesis. This suggests that there is no difference between the average ROI (and by extension performance) between bull and bear markets. This assertion continues to hold true at both the 99% and 99.9% confidence levels.

We additionally tested if this holds true when we change the Alternative hypothesis from Ha:μ1−μ2>D0 to Ha:μ1−μ2≠D0 (which denotes that there is a significant difference between the average ROI in bull and bear markets). We find that at the 95%, 99% and 99.9% confidence levels we still fail to reject the null hypothesis.

SUMMARY OF FINDINGS

SURPRISE! BAD PROJECTS WILL BE BAD PROJECTS, REGARDLESS OF THE MARKET'S HEALTH.

In summary, we found there to be no statistical significance in the average ICO performance in either a bull or bear market. In fact, we find that

1) there tends to be far more performance losers than winners regardless of market environment
2) ICOs, on average, tend to underperform in both bull and bear markets (where the market is driven by incumbent coins and tokens), and
3) bull markets see more outliers of negative performers!

We can safely say that there needs to be more studies done, and there are so many more variables at play here. But those looking to raise working capital through an ICO should not focus on trying to time the market but rather focus their efforts on other aspects such as the actual product, the white paper, marketing hype, building the community, and etc.

When I assigned our research team this task, I thought that I was going to prove to the world that investing in ICOs during a bear market was a bad idea. Not only was I proven wrong, but this study has given me new epiphanies on how to further capitalize the downtrends. Since then we have embraced the philosphy of truly growing organic communities and building a strong foundation for projects. While most would think that a bear market would have negative effects on all projects, the numbers were fairly clear here, and numbers don't lie. During bull markets, I suppose there's more confirmation bias as there are many more ICO's going on, which means more headline news of X, Y, and Z coins doing 500x returns. 

To all the projects that are on the sidelines waiting for the bull market to come, that is a bit concerning — ultimately, it means you have no faith in your own project. True tech and true community will overcome bear markets, as projects like Chromapolis and Cloudbric has proven.

Article Produced By
Han Yoon
Lunar Marketing

https://icobench.com/thebench-post/126-exclusive-lunar-insight-ico-performances-are-mostly-unaffected-by-bear-markets

What Is An Airdrop And How Does It Work?

What Is An Airdrop And How Does It Work?


In the cryptocurrency world, Airdrop has a different meaning

to when is used in the military, and specifically relates to gifts of tokens. Free crypto, yay!

What is an Airdrop?

A crypto Airdrop is the process in which tokens are distributed free of charge to users’ wallets in a blockchain. It is usually carried out by start-up companies in the ICO stage as a way to promote their projects and make themselves known. 

Why do cryptocurrency Airdrops happen?

There are several reasons why projects use Airdrops. The most frequent are:

Marketing strategy:
 generally, companies use it to attract attention in its ICO stage, so that interested parties are encouraged to investigate and then invest in the token. These strategies are also implemented with the launch of new cryptocurrencies that result from a fork, such as Bitcoin Cash.

Loyalty rewards: 
an Airdrop uses wallets and cryptocurrency exchange sites to provide free tokens as a way to reward their customers and subscribers for being loyal to their platforms. A relevant case: in 2017 Binance gave 500 TRX to their members.

Decentralization:
this helps from any point of view to any cryptocurrency platform and generates more security for the network and users. Example: OmiseGO distributed a large part of its tokens to Ethereum users.

Examples of successful airdrops

It is hard to define what constitutes a ‘successful’ airdrop, or to quantify its success. Nevertheless, let’s have a look at some of the most notable airdrops to date.

ByteBall airdrop

ByteBall is a Directed Acyclic Graph, or DAG-based, cryptocurrency network that features two native currencies: bytes and blackbytes. This ICO is notable because it launches airdrops to coincide with full moons. ByteBall distributes its token via airdrops for users who hold Bitcoin in their wallets.

OmiseGo airdrop

OmiseGo is now an established Ethereum-based platform for peer-to-peer (P2P) value exchange. But in 2017, it was just another startup ICO. Back in July 2017, OmiseGo launched a widely publicized, large-scale airdrop, where it distributed 5% of all its tokens to all Ethereum addresses that hold a balance over 0.1 ETH as of block 3988888. The airdrop took place exactly on July 7th 2017, 16:36:56 UTC.

Forks vs Airdrops

Airdrops are not to be confused with forks, another one of those terms with seemingly incongruous meanings.

Fork: A definition

Throughout its sometimes volatile history, Bitcoin has undergone changes and gone through forks which have heralded the inception of new currencies. The term “fork” signifies a code change to a coin’s underlying blockchain protocol. The new code might add new features, speed up the blockchain, or introduce other changes. Forks can be hard or soft. During a hard fork event, a currency splits into two. This results in two versions of the same currency (old and new) coming into existence. Hard forks are major changes to the blockchain protocol that underpins a currency, and are thus prone to create extreme market volatility. A soft fork also means a split, but the difference is that only one currency remains afterwards.

The Bitcoin Cash fork of 2017

August 1, 2017, became etched in the history of Bitcoin as its offspring, Bitcoin Cash, was born. A new currency came into existence that day, and any Bitcoin holders received the equivalent amount of Bitcoin Cash. While this fact bears similarities with an Airdrop, as users received “free coins”, it’s not quite the same. Airdrops are designed almost as marketing tools, to either generate interest, commercial leads, or simply maintain the buzz., while forks are major changes to a blockchain protocol, designed to split a currency.

Where to find free crypto Airdrops

There are pages in social networks, forums and applications that keep the community updated with relevant information that helps them select the most popular or current Airdrops. One website that offers interesting and reliable information about Airdrops is 

AirdropAlert.com.

Of course, CryptoCoin.News also has a section dedicated to free crypto Airdrops, in cooperation with AirdropAlert.com.

Scam Airdrops

The attractiveness of Airdrops opens the doors to scams, so it is important to verify the information of an advertisement with the official page of its promoter. No project that has an Airdrop planned will request a private key, personal data or a transfer of funds to be eligible for the distribution of the tokens.

Conclusion

An Airdrop is a useful strategy in many ways; it has brought to the ecosystem a new way of capturing the public and spreading new cryptocurrencies. In addition, it has served the market to motivate users in new project investments and build loyalty in others. And last but not least, Airdrops can earn you some free money, the easy way!

Article Produced By
Abel Colmenares Napolitano

Abel is a Fintech enthusiast experienced with blockchain technology. With a BBA and a master degree in e-commerce, he combines his passion writing about the Blockchain Industry, Cryptocurrencies and Fintech. When he is not working, he loves playing online games.

 

https://cryptocoin.news/analysis/what-is-an-airdrop-in-the-cryptocurrency-world-and-how-they-works-9315/

Decentralized Identity Systems and the Future of Marketing

Decentralized Identity Systems and the Future of Marketing

What if SSI evolved into more freedom for Content creators and influencers that resulted in an Ad-free blockchain internet?

Instagram stories have become intercepted with Ad-spam,

it’s a pretty terrible user experience. As Facebook seeks to monetize Messenger, WhatsApp and Instagram?—?since Facebook’s flagship app is a dying app; the message is clear. Centralized Ads are polluting the internet. Whatever you believe self-sovereign-identity is, blockchain needs to decentralize identity systems on the internet to ensure consumer privacy, control and freedom.

The Emergence of the Next Web Based on Blockchain

A digital identity that’s accountable to human rights, is that so much to ask? Digital creators and influencers need to have full-rights to their creations just as consumers should have full rights to their data, which they can then barter or sell or trade via tokens with advertising platforms. Facebook and Google’s model is all wrong, it’s the past.

I’m following a lot of crypto projects related to UBI and the decentralized identity systems that reward people better. One of the terms I like the most is called “self-sovereign marketing”, where several startups are looking into creating more fairness in content and referral traffic for influencers in a more transparent way.

Everytime I post on LinkedIn, in the back of my mind I’m wondering why I don’t get paid. On Medium, I can put my articles behind a paywall and make a living wage. Why would I ever post again on Instagram or Twitter without some measurable return on investment? I need social media to work for me. If I have 195,000 followers on LinkedIn, that has to mean something.

Human Rights on the Internet

What people do should matter, and their digital rights not just to privacy, but to empowerment is key for how we build the internet and restart it with blockchain. SSI should not just serve Governments in how they track citizens on centralized blockchains. There must be an aspect of decentralization where the peer-to-peer aspect empowers people globally. Imagine if LinkedIn actually worked that way, and wasn’t just a spin-off of Microsoft? Imagine if Facebook stood for something more than a “family of apps” that is just an advertising machine?

SSI should complement existing advertising and government digital identity systems, just as Bitcoin and over 2,000 digital assets already complements how fiat transactions, investment, trading and assets work. Decentralization is about bringing the internet a new era of freedom, stability and alternatives to what’s not working. Let’s be honest, Google and Facebook should probably be broken up. (We don’t need the inventor of the Internet to tell us that). They are too centralized and have become corrupt.

In a future world of decentralized identity,

consumers will have more rights and advertising and
brands will open up a new era of ethical influencer marketing.

The Sociology of Decentralization

As mistrust of centralized tech companies grows, in proportion the movement towards decentralization syncs with our collective values.

At the same time now you have people like JP Morgan saying they are behind Ethereum. We can only assume the rise of digital assets and a token based economy will herald new options and alternatives for consumers on the next phase of the internet. We can’t stay on Facebook family apps and think it’s okay anymore. Consumers will demand better experiences, just like I as an indie journalist need incentives that motivate me and don’t just exploit me for my creativity.

Decentralization is the Key in How we Transition Past Advertising to the Next WebSelf-sovereign identity platforms need to scale with the future of how the internet will work. Their dApps need to empower consumers where new ecosystems of value can emerge that create more level playing fields.Capitalism without trust and blockchain might have trouble sustaining its value based on the old tricks (like vanity metrics for instance).As Instagram itself becomes saturated with stories that no longer have relevance to our fleeting attention, a new generation of apps will take its place.Many of those will have self-sovereign marketing built into them. This is already happening with many micro-video apps, you just might not be aware of it yet.

Self Sovereign Marketing will scale a new model of advertising

and change the internet forever.SSM will Hardcore Opportunity and Authenticity in the next Era of Social Marketing Advertising just like physical retail, needs to adapt to the values of the new consumer. Decentralization identity systems will augment how consumers participate in the future of advertising. Any blockchain startup that’s pioneering better incentives for these apps is ultimately contributing to the future of self-sovereign identity and self-sovereign marketing, SSI and SSM respectively. One day I’ll do a survey covering the main ones.

In a world of cryptoeconomic freedom, social platforms won’t own our data, we will. We’ll be driven by economic incentives to collaborate and create, in an open-source and permissionless manner where we’ll have unparalleled self-governance to explore our interests and abilities online compared to the enslavement of the internet today. Digital assets are pointing to a new model of how the internet of the future will work.

Article Produced By
Michael K. Spencer

Medium member since Apr 2018

Blockchain Mark Consultant, tech Futurist, prolific writer. WeChat: mikekevinspencer

https://medium.com/futuresin/decentralized-identity-systems-and-the-future-of-marketing-c6e1fde04552

 

 

Report: Popular ICO Listing Sites Show Massive Inconsistencies in Project Fundraisers

Report: Popular ICO Listing Sites Show Massive Inconsistencies in Project Fundraisers

A Bloomberg report on November 5, 2018, pointed out the vast inconsistencies in the amount of capital raised by Initial Coin Offerings (ICOs) raised in 2018, as per data compared on several websites.

Lacking Consistency and Incentives

In an industry that banks on providing transparency and accuracy to every dataset available for public viewing, the verifiable sources of information look bleak. Much of this is attributed to the lack of uniform industry standards available for the blockchain and cryptocurrency sector, while conflicts of interest may come into account to explain the remainder of such instances.

Tokens issuers in 2018 raised $22 billion in 2018 according to CoinSchedule, an ICO listing site, or just $11 billion if data from Autonomous Research is considered. The two figures represent a mammoth difference in the number of funds raised and form a concern for investors, journalists, and academics who look towards researching the cryptocurrency market for making strategic decisions and publishing educational content.

Alex Buelau, the co-founder of CoinSchedule, cites a lack of incentive for information dissemination platforms as a prime reason for listing inconsistent data in the absence of industry-standards. In addition, sites like his make profits based on advertising revenue and sponsored token listings, which may mean displaying inflated fundraisers to attract unassuming investors. For a $200 billion industry banking on a few startups to access information, Buelau’s comments point out a problem larger than the lack of usable applications for cryptocurrencies; the absence of establishing a common truth for dynamic developments in the nascent sector.

The cryptocurrency exchange RubyX, for example, has raised a massive $1.2 billion if CoinSchedule is trusted, a paltry $200 million based on ICO Rating, and is altogether excluded from Autonomous Research due to a lack of “online footprint.” A more extreme instance is of the controversial Venezuelan cryptocurrency Petro, which raised $3.3 billion if President Nicolas Maduro’s statements are to be believed, but only $735 million if ICO Rating and CoinSchedule are assessed.

Elementus’ co-founder Nuria Prunera notes on-chain data must be relied upon to track ICO investments, instead of an online database. But, a major issue with such a method is the inability to capture fiat payments for tokens. Autonomous Research claims it uses 50 trackers to determine token information and manually removes any datasets it deems fraudulent or inflated. However, head of strategy Lex Sokolin ascertains the trackers lose effectiveness over time, especially as the “economics of a database weaken.”

The advent of token “pre-sales,” or making fundraising available to an elite set of investors prior to public offering, also makes ICO data difficult to fully compute. Tokens firms are increasingly offering private deals to venture capitalists, wealthy investors, and crypto hedge funds, without the token’s price, conditions, and lock-in periods available to retail investors.

Meanwhile, crypto-specific funds have been cashing in on similar private deals since inception, which contributes vastly to the disparate funding reports provided by various listing firms. While making huge profits matter to individual investment businesses, it threatens to relegate cryptocurrencies to the very sector it aims to differentiate from: the corrupt world of IPOs, pre-IPO deals, and public misinformation.

Article Produced By
Shaurya Malwa

Shaurya is the Editor at BTCManager. After graduating in business from the University of Wolverhampton, Shaurya ventured straight into the world of cryptocurrencies and blockchain. He believes decentralizing the world's financial, economic, and political systems is mankind's next giant leap.

https://btcmanager.com/author/shaurya-malwa/

 

Max Keiser Calls for New All Time High Bitcoin Price with Morgan Stanley’s Asset Class Classification

Max Keiser Calls for New All Time High Bitcoin Price with Morgan Stanley’s Asset Class Classification

The goal for many cryptocurrency enthusiasts is to make cryptocurrency

into a mainstream asset, and a recent report from Morgan Stanley suggests that it is heading that way. The report, which includes predictions and clarification from Max Keiser, shows that Bitcoin is considered a new asset class by the company, adding to the belief that the digital asset still holds a chance of reaching the $28,000 price level. With such a reputable company, it should be no surprise that Wall Street is taking note, and that a new ATH is coming.

Many positive statements are coming out of the new report, which notes that Bitcoin, along with cryptocurrency as a whole, is the new asset class. The report includes information that has been gathered over a six-month period, noting that the institution’s “rapidly morphing thesis” has led them to have confidence in the new payment system. In fact, the report also indicates that Bitcoin is on the way to be a new institutional investment asset class.

To support how credible Bitcoin truly is, even Fidelity is behind this concept. Much of the reason that the report credits the lack of entry by institutional investors has to do with a lack of regulatory measures, larger financial institutions, and the lack of certainty with upcoming regulatory measures. The report is keen to note that there are $7.11 billion in cryptocurrency that hedge funds are presently managing. This statistic alone is evidence of the way that institutional adoption is progressing.

With all of these promising details about the evolution of the cryptocurrency industry, it should not be surprising that investors and enthusiasts are brimming with excitement. With the Morgan Stanley report, Max Keiser decided to chime in with his bullish opinion. The inventor of Virtual Securities, Market-Making and Virtual Currencies is maintaining his prediction that Bitcoin reaching $28,000 can happen.

There are two tweets that demonstrate his optimism. Regarding the Bitcoin price, he said, “Bitcoin black hole about to swallow huge amounts of institutional money. New ATH incoming. $28,000 still in play.” A later tweet added, “Bitcoin deemed an ‘asset class’ by Wall St. This means $20 trillion in global assets under management will need to start gaining some meaningful exposure. Morgan Creek Digital’s founder and partner, Anthony Pompliano, posted his opinion on Twitter about the report,

saying,

“Morgan Stanley just officially announced that they consider crypto a new institutional asset class. Every institution has to #GetOffZero and get in the game. The virus is spreading.”

Article Produced By
Bitcoin Exchange Guide News Team

14 Types of Backlinks: the Good the Bad and the Best

14 Types of Backlinks:
the Good, the Bad, and the Best

Acquiring backlinks is an essential part of an effective SEO plan.

Links tell search engines that a site is recognized, trusted, and, therefore, worthy of a top spot on search engine results pages (SERPs). But it’s not just the number of backlinks that appeals to search engines; it’s also the types of backlinks.

Depending on the link type, backlinks have varying levels of influence on search engine rankings and on the results you can see from acquiring them . The rest of this post will look at the different types of backlinks, explain their value, and offer tips for how you can acquire the most valuable and effective backlinks.

3 Factors That Impact Link Value

Before we review a full list of backlink types, it’s important to understand what makes a link valuable. As mentioned above, backlinks are not all created equal. There are a variety of factors that can make backlinks more valuable than others, and there are also some that make a link very bad for SEO. The 3 main factors that impact link value include the following:

1. The Authority of the Linking Site

The most valuable types of backlinks come from quality websites. Links from sites that are recognized as top authoritative resources will send more positive signals to search engines than links from low-quality, lesser-known sites.The most valuable types of backlinks come from quality websites.

To determine the authority of a site (and the value of a link), look at the linking site’s Alexa Rank. The better (i.e., lower) the Alexa Rank of the linking site, the better the link is for SEO. Sites with a low Alexa Rank are more authoritative than sites with a high Alexa Rank. You can check a site’s Alexa Rank using Alexa’s Site Overview tool.

2. Do Follow vs. No Follow Status

When a publisher adds a link to their website, they can use HTML code to set the link as either “do follow” or “no follow.”

  • Do follow links tell search engines to notice and give SEO value to the links.
  • No follow links tell search engines to ignore the links and give them less SEO value.

Because do follow links send better signals to search engines, they are more valuable than no follow links.  You want links to your site to be coded as do follow. However, a no follow backlink can still drive traffic to your website.Because do follow links send better signals to search engines, they are more valuable than no follow links. To know if a link is a do follow or no follow, you can use the NoFollow Simple Chrome extension to easily check the link’s code. Google and the Google logo are registered trademarks of Google LLC, used with permission.

3. On-Site Link Location

Websites are set up in sections, and how valuable a link is may be impacted by the section in which it appears. The most valuable links are placed within the main body content of the site. Links may not receive the same value from search engines when they appear in the header, footer, or sidebar of the page. This is an important factor to keep in mind as you seek to build high-quality backlinks. Look to build links that will be included in the main body content of a site.

The Best Types of Backlinks

Now that you know what makes backlinks valuable, let’s look at a list of the best backlinks for SEO. As you learn how to create backlinks, these are the strategies that will provide the best long-term SEO results.

Editorial Backlinks

The best types of links in SEO come from editorial mentions. An editorial mention is when another website refers and links to your website in a piece of quality content. An editorial backlink may be included as:

  • Citing someone from your company or something from your content as a source of information
  • Referring to your website as a resource for additional information
  • Citing your website as the creator of an infographic
  • Including your website or content in a link roundup
  • Interviewing someone associated with your website

How to Get Editorial Backlinks:

  • Develop a strong content marketing
  • Create high-quality, evergreen content that serves as a go-to resource.
  • Create shareable content that other sites will want to talk about.
  • Publish content that shows your website and brand as a thought leader in your industry so that other sites will want to cite, source, and interview you.

Use Alexa’s Competitor Keyword Matrix to find popular keywords and topics you haven’t written about yet. Consider keyword popularity to find trending topics you can write about on your website.

Guest Blogging Backlinks

Guest blogging is another way to acquire valuable backlinks. When you submit a guest post to a website, you’re often allowed to include an editorial backlink within your content. These types of backlinks are a reliable way to build trust and authority through other influential publications.

How to Get Guest Blogging Backlinks:

Build a list of valuable guest blogging sites and master guest blogging outreach.

Business Profile Backlinks

In most cases, when you create an online profile for a business, you can include a link back to your website. These links on business listings, social media networks, and industry-specific directories show search engines that a website is established and high quality.

How to Get Business Profile Backlinks:

Create profiles on well-known directories or review sites (such as Yellow Pages, Yelp, Foursquare, Capterra, etc.) in your industry. Or consider using a service like Synup or Yext that creates and manages profiles for you.

Webinar Links

Creating a valuable resource on your site often encourages other sites to link back to it. A high-value piece of content that often leads to links is a webinar recording. Other sites frequently link to or even embed other brand’s webinars on their site, leading to both links and brand mentions.

How to Get Webinar Backlinks:

Repurpose your webinars by posting them as recordings on your website so people can visit and link to them. Use blog promotion to attract attention to the webinar recording, and find guest blogging sites that may be interested in using the webinar as resource on their site.

Free Tool Links

Another way to get sites to link back to something valuable on your site is by offering a free tool. A free tool could be a basic tool (like an auto loan calculator) or a scaled down version of a paid tool (like Alexa’s Site Overview and Audience Overlap tools). If the tools are valuable enough, others will link to them in their content. Plus, on free versions of paid tools, you can add call-to-actions to sign up for the full product/service which drives acquisition in addition to awareness.

How to Get Free Tool Backlinks:

Create a simple tool or free version of your paid tool. Use Alexa’s Audience Overlap tool to find sites that have a similar audience who would be interested in using your tool, and use guest blogging outreach to connect with the sites and see if they would like to feature your free tool.

Good Types of Backlinks

There are other types of backlinks that don’t provide as much value as those listed above, but can still support your overall link profile and help boost your SEO.

Acknowledgment Backlinks

An acknowledgment backlink is when a website mentions and links to a website in reference to a relationship or sponsorship. These links typically don’t have much content related to the brand or what they do, and instead, are simple mentions that:

  • Indicate that the brand made a donation
  • Show that someone from the brand is speaking at or sponsoring an event
  • Include a testimonial for the linking website’s brand

How to Get Acknowledgment Backlinks:

Use Alexa’s Competitor Backlink Checker to find backlinks your competitors get traffic from. Identify sites where they acquired acknowledgment backlinks, and look for places in those sites’ content where you can do the same.

Guest Post Bio Backlinks

In some cases, guest blogging sites don’t allow or won’t include a link back to the author’s site within the main body of content. Instead, they allow the author to include a link in the author bio. While not as valuable as a link in the body of the post, bio backlinks can still add value to a website’s link portfolio.

How to Get Guest Bio Backlinks:

Use the same guest posting strategies mentioned above and also perform a backlink analysis on your competitors to see where they have acquired guest post links.

Badge Backlinks

A way to build backlinks by providing value to other sites is through branded badges. A branded badge is an award that a brand creates and gives out to other sites as a status symbol. For example, you could create a list of the top sites or best brands that are published on your site, and then give badges to each brand on the list so that they can show the status on their site. You include a link back to the article on the badge to create the link.

How to Get Badge Backlinks:

Look for a group of sites that you can qualify together and create a badge to identify them. To find similar sites, use Alexa’s Audience Overlap tool to identify groups of sites that share themes and audiences.

Newsworthy Press Release Backlinks

A press release can serve double duty for marketing efforts. It can alert media outlets about your news and also help your website gain backlinks. But it can only build links effectively if executed properly. Only write and distribute press releases when a brand has something newsworthy or interesting to share . This strategy can gain links on the actual press release post as well as on the stories that media outlets write about it.

How to Get Press Release Backlinks:

When your brand has news, write a press release and use a service like PRWeb or Newswire to distribute it to media outlets.

Comment Backlinks

When you comment on a blog post, you are usually allowed to include a link back to your website. This is often abused by spammers and can become a negative link building tool. But if you post genuine comments on high-quality blog posts, there can be some value in sharing links, as it can drive traffic to your site and increase the visibility of your brand.

How to Get Comment Backlinks:

Don’t overdo it with this strategy. Only focus on commenting on relevant, high-quality blogs or forums related to your industry. To find sites relevant to your industry and audience, use Alexa’s Audience Overlap tool to find similar sites your audience uses.

Bad Types of Backlinks

Because high quality backlinks are such an important part of SEO, it’s easy to believe that every link, no matter how valuable, is beneficial. But not all links are valuable. Some links have little to no value, while others can actually negatively impact SEO . As you engage in link building, avoid creating these types of backlinks.

Paid Links

While it can seem like an easy way to acquire links, you should not pay other publishers and websites to link to your site. Google explicitly says that buying or selling links “can negatively impact a site’s ranking in search results.”

Non-Newsworthy Press Releases

As mentioned above, interesting and newsworthy press releases can help a brand gain attention and links. But it can also appear spammy if a brand repeatedly spreads press releases that aren’t newsworthy and are created for the sole intention of gaining links.

General Business and Article Directory Links

Just as you don’t want to overdo it with press releases, you also don’t want to overreach with directory listings. Stick to the most trustworthy, authoritative, and industry-relevant directories and don’t create profiles on spammy directories just for the purpose of generating links.

Forum Links

Joining dozens of forums for the purpose of posting links back to your site is also bad. Only join high-quality forums where authentic discussions are the primary purpose, not spamming a thread with posts about your content and brand.

Build a Better Backlink Strategy

Links are an essential part of any good SEO strategy. But remember, it’s not just about the quantity of links; it’s also about the quality of the links .There are different types of backlinks that come with varying levels of value and importance. Create your link building plans around acquiring top-tier links that will be the most beneficial to your SEO. To find the best backlinks for SEO, sign up for a free trial of Alexa’s Advanced Plan. You’ll get access to all of the audience, industry, and keyword research tools mentioned in this post that can help you build an effective link building plan.

Article Produced By
Jennifer Yesbeck

Jennifer is Marketing Manager at Alexa. With a knack for syntax and passion for building connections, she drives daily content strategy to bring you the latest and greatest happenings within Alexa and the wide world of web analytics and marketing.

https://blog.alexa.com/types-of-backlinks/?utm_medium=email&utm_source=blog-10-30-18-types-of-backlinks&utm_content=bp-types-of-backlinks&utm_campaign=content-visit