Dec 17, 2021·edited Dec 17, 2021Liked by Flirtcheap
Airdrop - An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. This can be done for several reasons. New projects can use airdrops to attract attention and hopefully users - this is the spam of the crypto world. Anyone with a Ethereum wallet will have experienced opening it to find they now own an array of ERC-20 tokens they have never heard of, almost all of which will never be worth anything. Some existing protocols, such as Algorand, use airdrops as the distribution mechanism for newly mined tokens, ensuring inflation is proportionally distributed. Airdrops can be used to reward users that have placed tokens within liquidity pools or other DeFi instruments. Any such distribution of tokens is an airdrop.
IDO - An Initial DEx offering, is an evolution of the ICO for decentralized and permissionless crowdfunding in the crypto space. These projects launch their coin or token via a defined sale period on a decentralized liquidity exchange. IDOs are generally considered a "more fair" way to launch a new project as they avoid pre-mining and are more decentralized. Tokens launched this way have immediate liquidity because they are already on the DEx, whereas tokens purchased via ICO will typically have a period of months to years without liquidity while investors wait for them to be listed on a CEx or DEx.
Airdrop - An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. This can be done for several reasons. New projects can use airdrops to attract attention and hopefully users - this is the spam of the crypto world. Anyone with a Ethereum wallet will have experienced opening it to find they now own an array of ERC-20 tokens they have never heard of, almost all of which will never be worth anything. Some existing protocols, such as Algorand, use airdrops as the distribution mechanism for newly mined tokens, ensuring inflation is proportionally distributed. Airdrops can be used to reward users that have placed tokens within liquidity pools or other DeFi instruments. Any such distribution of tokens is an airdrop.
IDO - An Initial DEx offering, is an evolution of the ICO for decentralized and permissionless crowdfunding in the crypto space. These projects launch their coin or token via a defined sale period on a decentralized liquidity exchange. IDOs are generally considered a "more fair" way to launch a new project as they avoid pre-mining and are more decentralized. Tokens launched this way have immediate liquidity because they are already on the DEx, whereas tokens purchased via ICO will typically have a period of months to years without liquidity while investors wait for them to be listed on a CEx or DEx.