Airdrops are the crypto analog to free samples in a shopping mall. Projects that are just starting out will oftentimes give out a small amount of free tokens to verified people in order to spread the word about their project. They often do this near the time of their ICO.
A startup can create mass awareness about their project, token sale or pre-ICO with minimal cost to them. Social media campaigns allow the project to become visible to people who would otherwise never recognize its existence. Airdrops can also create a vast network of users who are motivated to push a project’s success by doing things together like winning community votings for exchange listings. By rewarding token owners with free airdrops, projects can also encourage users to hold (HODL) their coin for the long-term. This can effectively lower the selling pressure of the coin.
An ETH address, also known as an ERC20 address, is the receiving address of an Ethereum wallet. The address starts with “0x” and is followed by a series of 40 random characters. In MyEtherWallet, your receiving address is the “Account Address.” In MetaMask, your ETH address can be found by clicking the menu icon (•••) and clicking “Copy Address to clipboard.”
To do anything on the Ethereum platform, you need to pay for it, and the payment (or fee) is calculated in Ether (ETH) via an intermediary benchmark called gas limit and gas price. This equation is used for calculating ETH (or Transaction fees): Ether = Tx Fees = Gas Limit xGas Price NOTE: Never disclose or loose the Private Key to anyone. Always keep it under safe custody. Take a backup and also you can take a print out of it to make a backup hard copy.
Most airdrops are distributed after the completion of the ICO. This prevents the bounty collectors from creating premature price action before the ICO has finished. Sometimes, bounties are distributed weeks or months after an ICO, so if you have a question about a specific coin you should try contacting one of the Admins in their Telegram group. Admins can be found by looking at the group members and finding the ones with the “admin” badge next to their names.
To view your token balances quickly, simply type your ETH address into Ethplorer or Etherscan. All of your available custom tokens will be shown under “Token Balances.”