In order for a currency to be spendable, there needs to exist some method of distributing it into the hands of potential users. It stands to reason that a currency with a wide and varied distribution, is likely to see more usage than a currency with a narrow or flat distribution, by the simple fact that more people are able to spend it.
How then to achieve this initial distribution of finances in the context of a new cryp-tocurrency launch? A few strategies have so far manifested.
Often funded or accompanied by an initial private mining of the cryptocurrency before release to the wider public (a “pre-mine”), airdrops serve to merely deposit the currency into the wallets of interested parties from some central reserve on a basis that is, though different from coin to coin, inherently arbitrary. This presents some problems with respect to both the fairness, and extent of the distribution achieved. The supposed fairness of any airdrop distribution obviously varies dependent upon the exact conditions of any particular instance, however, they are cer-tainly susceptible to the whims of human corruption due to the arbitrary nature of the distribution.
They are frequently distributed on a first come, first served basis and this approach naturally favours those closely watching developments in the cryptocurrency sphere, and is also clearly subject to potential nepotism and corruption concerns. Furthermore, the width of such a distribution is, by its nature, limited only to those who become aware of the offering during the time in which it is active, and, dependent on other conditions and considerations surrounding the launch of such an offering (i.e., publicity, marketing, P.R., budget etc.), could be seen to limit the distribution quite con-
siderably.
Though airdrops can be considered somewhat risk free, as they do not require anyone to part with anything of value to participate, for the above reasons we believe their utility in distribution of financial equity in a new currency offering to be questionable
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