Airdrop, an effective marketing strategy for crypto currencies?

The Stellar Team published on its website, on November 6th, the most important crypto monetary airdrop ever made.

“We are delighted to announce the largest distribution of Stellar Lumens to date: a 500 million lumens XLM distribution to users of the leading digital wallet provider, Blockchain. This airdrop will promote the Stellar name and technology to the 30 million users of the Blockchain wallet and attract many new users to our ecosystem. »

The Blockchain platform, for its part, promoted the incredible operation with a tweet from its CEO and founder – Peter Smith.

Stellar, full name Stellar Lumens is a decentralized solution based on the Blockchain. Its goal is to offer individuals easier financial transactions. By bypassing the traditional banking system thanks to its technology, it offers to make international transfers and micro payments quickly and with limited fees.

What is an airdrop?

An airdrop is the action of broadcasting tokens and this, in a completely free way. The airdrop generally aims to increase the visibility of a crypto money.

Taking up the well-oiled concept of our beloved marketing: “You can’t catch flies with vinegar”, the airdrop is a way to bring together in a single action the 3 dimensions of a classic communication strategy:

Cognitive objectives (making people aware): airdrop is an effective way to create buzz. Indeed, the user being offered tokens will certainly want to share the good plan around him. Sites dedicated to crypto money and other technological information are also fond of this type of news, which is quick and easy to disseminate.

Emotional objectives (to make people like): by offering even before receiving, crypto money has a much better chance of attracting adhesion and federating around its project by creating sympathy for it in the community.

Conative objectives (to make act): once acquired, users will have to use these tokens. They will therefore place them in a dedicated portfolio or on an exchange platform, follow their evolution and possibly reinvest, this time injecting their own funds.

To build an effective communication campaign around an airdrop, the focus will be on designing a good digital, social media and PR 3.0 strategy. Including an affiliation strategy also seems to be a very relevant approach. Being able to establish a qualified database from the outset is an undeniable asset that can make all the difference in managing the post-airdrop and deploying optimized trigger marketing strategies.

A marketing strategy that pays off

Yes, that’s for sure! In any case, if we take the example of Stellar Lumens’ latest airdrop, the operation will amount to nearly $125 million for Stellar. A budget that any Communications Director can dream of.

Nevertheless, if we analyze the results… It could well be that the publicity stunt turned out to be a simple notoriety operation with a dizzying budget.

If we look at the green curve (Stellar’s price), we actually see an increase in its value around November 6, 2018. This increase was followed (far too much) quickly by a bellows effect since, from November 12, 2018, the Altcoin resumed its fall as if nothing had happened, following the downward trends of the global crypto monetary market (price in blue).

It is therefore to be hoped for Stellar that this airdrop was a marketing operation based on a solid partnership with the Blockchain portfolio. And that the latter succeeded in attracting many new users under the effect of the announcement.

Thus, the short-term balance sheet looks very disappointing for Stellar. After having managed to climb to 5th place in the ranking in mid-November 2018 under the effect of the airdrop announcement, the Altcoin is back in 7th position in the crypto money in mid-January 2019. The airdrop thus seems to be a marketing strategy that has great advantages and clearly increases visibility. But it is a strategy that remains to be handled with care. Indeed, in a context that is still insufficiently regulated and where every day new crypto money systems appear, airdrop can also be welcomed as an attempt to swindle the community if the crypto money has not yet built up a solid and serious image beforehand.  This is enough to leave many hours of work and creativity to the passionate marketers who are working to build this new blockbuster economy…

Would you like to get more information about airdrops, ICO and crypto currencies? Contact our experienced team today.

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