What is ICO drops and is it free?

Crypto exchanges list new crypto projects almost every day. There is an ICO Drops website enabling you to access any project at its early stage. Its listing is free of charge.

In this article, for informational purposes, besides showing you everything you need to know about ICO drops in general, we will see what ICO projects are, what airdrops are, and how you can participate in an ICO project.

What are ICO drops (airdrops)?

You have probably already heard of cryptocurrency airdrops. But what exactly is an airdrop? It is a free distribution of tokens directly to your electronic wallet (wallet). 

A way very different from trading is to grow your portfolio which sometimes does not require spending a penny to take advantage of this distribution of cryptocurrencies.

This free distribution usually occurs before the ICO. Very often, the initiators of airdrops offer tokens in return for certain actions such as:

• Join the telegram group.
• Like the different pages on social networks.
• Pass the verification of his identity with the company (KYC)

How Do I Know what hot ico drops are?

There are several ways to get information about the next scheduled airdrops. You can use channels like:

• Facebook groups
• Slack, Telegram, or Discord channels
• Specialized Twitter accounts
• Reddit and Bitcointalk sites.

You can also get useful information from crypto reference sites or guides specializing in airdrops, such as ICOdrops, which are the most popular and reliable.

What is the ICO Drops website, and how does it work?

ICO Drops is a website and an independent ICO or token sale database and is not affiliated with any ICO project or company. Advertising some token sales may incur fees.

With the ICO Drops, database investors can access projects prior to their launch and listing on exchanges.

Initial public offerings and initial exchange offerings are listed on ICO drops website in three categories: Active ICO drops, Upcoming ICO drops, and Ended ICO drops. Each ICO contains info about the project and its ratings.

Other popular ICO drop-listing websites are

• Binance Launchpad
• Huobi Prime
• Gate.io
• DAO Maker
• BSC Launchpad
• KuCoin Launchpad
• Polkastarter
• CoinList

Before investing, you definitely should look at some of these websites to compare ICOs, find ico crypto calendar, ico coinmarketcap, ico lists for 2023.

Why Do Crypto Projects Offer Airdrops for Free?

Several reasons can lead an entity to offer tokens for free. Some of these reasons include:

Rewarding users: offering tokens is a way of thanking those who have supported the crypto project from the start. This is the reward for their loyalty.

Contribute to the decentralization of the network: offering cryptos in airdrop makes it possible to reinforce the security of the Blockchain network of a project.

Crypto holders who receive tokens become “Proof-of-Stake” validators and thus participate in the network’s decentralization.

Publicize the company and the project: the airdrop is a suitable way to make propaganda around a project. By distributing free tokens, the company encourages investors to participate in its fundraising.

Should You Venture into a Crypto Airdrop?

An airdrop is a means by which a startup can publicize its cryptocurrency project. It is a program that distributes tokens for free to several investors to gain their support. This mechanism goes a long way toward securing the cryptocurrency’s Proof-of-Stake network.

It is a boon for investors who can get cryptos for free. Considering that the consideration is not substantial, it would be wise to take an interest in the next ICO drops that are being prepared to benefit from their many advantages. However, be sure to take all possible measures to avoid being scammed.

How to be eligible for an airdrop?

Each project has its own eligibility criteria on the ICO drops website and all other airdrop platforms. You are often asked to perform certain tasks such as:

• Enter your wallet address
• Interact with a smart contract and provide liquidity or perform swaps on the project platform
• Follow the project on social networks and participate in its notoriety

There may be other types of actions to complete. Those listed above are the most common.

Once you have researched a crypto project, you will often have access to the different actions to take to make yourself eligible.

Should my business use an ICO?

It’s tricky to give this kind of financial and investment advice. Many experts don’t give a unanimous answer.

An ICO is useful for companies, entrepreneurs, enthusiasts, and ideologues who believe that their project is capable of influencing a particular country or the whole world.

In simple terms, an ICO is an international and open way to raise funds and launch your project in different ways than an IPO on a national stock exchange. It is suitable for both digital and physical projects.

Advantages of fundraising by ICO

Financing by ICO brings several advantages to a startup compared to conventional financing methods:

Speed ​​and ease of fundraising

Implementing an ICO and receiving funds can be much faster than financing by venture capital or by IPO, for which several intermediaries must analyze the project, the business plan, the market, or even financial strength.

If the project appeals to the community more than expected, it is possible that the ICO can raise astronomical amounts in a very short time. The ICO, therefore, has the advantage of speed and ease.

ICO drops: borderless and low cost

ICOs also have the advantage of reaching an international audience beyond a country’s borders.

It is thus possible to raise funds in the four corners of the planet. The number of different countries can sometimes exceed a hundred!

Liquidity, earnings, and openness

On the other side of the scale, investors will obtain tokens, highly liquid assets on most exchanges, which they can trade or hold, depending on their perspective of earnings and time horizon.

The gains can also be increased tenfold, with the volatile crypto-currency markets. The daily variations are not comparable to the stock markets, for example, and can reach tens or even hundreds of percent in a few days.

It is not uncommon to see the price of a token be multiplied by two or three when it enters the exchange platforms!

Finally, a common advantage for investors and entrepreneurs is the opening of ICOs to everyone. Investing in an ICO does not require any particular accreditations for investors. All you need is a validated virtual wallet and access to the ICO site.

It is nevertheless possible that not all countries can access all ICOs. It depends on the policies in force and the regulations of each country.

Tips Before Joining a Crypto Airdrop

Given the success of airdrops, scams are emerging on the internet to extract money from naive people. Before embarking on an airdrop, here are some tips to observe:

• Use a secure password, i.e., it must not resemble that of a social network account or your mailbox
• Never pay money. The program is free
• Check the information on official sources, namely the company’s social media accounts (Facebook, Twitter, Reddit, etc.). Companies that start this process always discuss it on their official website.
• If the airdrop you are offered does not respect these elements, you have to doubt its security.

Conclusion

ICO drops, of course, allow you to obtain cryptos for free. But they are also an indirect way to discover new protocols and learn how to use them.

ICO drops are popular in the crypto community, but qualifying for them requires research effort. Looking for new airdrop opportunities will allow you to understand the ecosystem and how it works.

Security, as always in the world of cryptocurrency, should not be overlooked. Prior analysis and regular monitoring of crypto news are also two important factors. By implementing good habits, you can serenely benefit from token airdrops while contributing to the development of various projects.