Akasha Indream is advisor to Wizebit.com, a founding member and Engagement Director of IoMob.net, and founder of MissBlockchain.Tech and WIBI.io – a 500 strong women in blockchain Telegram group.
With the influx of business people seeing the benefits of ICO funding over VC funding, launching a blockchain and native cryptocurrency has become an increasingly attractive means of raising capital for disruptive startups who want to leapfrog into the fast lane.
I often get calls from people new to the crypto space who want to launch an ICO but don’t know how to build the community to do it. It’s crypto asset basics to understand that the value of your token depends on the value that the community attributes to it – the main factor that determines your token price is the decentralized market, i.e. the hearts and minds of people.
What level of faith people (i.e. customers) have in you determines their buy and sell orders on the exchanges which in turn impacts on the red and green candles and your liquidity. Having as many people invested and interested in your platform as possible is a fundamental principle of Investor Relations 101 in the new decentralized blockchain economy.
So, how do you cultivate faith in yourself, your product, and your platform, on this scale? Well, the typical industry response has been the popular means of the token “airdrop”.
When I explain the airdrop to cryptoland newbies, the typical response is “but why would I give something away for free that I want to sell?” The answer is it’s the basics of loss leader marketing. Invite as many people as possible to sample your product, so that they become educated about its benefits, and then, through word of mouth, do the marketing for you.
Word of mouth can’t be underestimated in crypto. Marketing through the typical online ad platforms is prohibited, and even some mass mailers prohibit use of their services for crypto now. So connecting with microinfluencers is how your token name and platform is going to become immortalized and adopted. It’s a new decentralized form of marketing to suit the new decentralized form of economy.
But an airdrop has many other benefits asides. When you go to list on exchanges, they will want to know how many people you have in your community, because that will then reflect on how many new customers listing your token will bring to their exchange (and a commensurate increase in exchange fees in their pockets).
Moreover, placing your token in as many hands as possible, I feel, adds to price stability. It’s always a good idea to place wealth in the hands of the many rather than the few. It will mitigate against the effects of one of the early investors deciding to do a dump of your tokens on an exchange before you have built sustainable long term token demand – your other investors will know that there are many thousands of people who still hold your coin, and their steady confidence will help to restore the candles to green rather than let your token price spiral down the red ladders of doom.
So how do you run an airdrop? Well, you can have a web based form people fill out like Havven.io and Wizebit.com. You could run a Telegram bot like Clearcoin.co did. Or you can pay a third party to do it for you like Earn.com. How you do it is going to depend on what sort of community you want to build, how fast and how big.
Airdrops are your first step in marketing your new token. It quickly spreads knowledge about your offering, and increases community confidence as well as generating community interest – it also demonstrates you have reached a critical threshold of interest to enable future exchange listing. An ICO that is willing to splurge big on a large airdrop, and not hold everything back for private investors, is also sometimes seen as a marker of one that the crypto community can have long term faith in because it has the interests of a decentralized economy at its heart.
Need to know more? Send me an email to akasha AT indream.co