Author: Jiyun Kyung, Business Development (https://www.linkedin.com/in/jiyunkyung/)
[TL;DR]
- Airdrops are a representative marketing tool for cryptocurrency projects, aiming to increase awareness and acquire users through token distribution.
- However, existing airdrops have high entry barriers for Web2 users, limiting their participation.
- The Wepin wallet, as a WaaS solution, can improve airdrop participation through email-based wallet creation and simplified procedures.
- This can increase Web2 user participation and provide a more user-friendly experience.
1. What is an Airdrop?
1.1 Definition of Airdrop
An airdrop is a marketing activity where cryptocurrency projects or platforms distribute coins or tokens for free. Airdrops are primarily used to promote tokens of new projects or existing projects, helping to attract potential users and expand the community. Airdrops typically involve distributing tokens randomly or on a first-come, first-served basis to users who meet specific conditions.
1.2 Purpose of Airdrops
The main purposes of airdrops are to raise awareness about the project, attract more users to the platform, and promote initial token distribution. Through airdrops, projects can gain the following benefits:
- Increased interest in the project and token
- Acquisition of potential user base
- Promotion of community participation and activity
- Enhancement of token decentralization and liquidity
- Strengthening of network effects
2. Effects of Airdrops
2.1 Raising Project Awareness
Airdrops are one of the effective ways to promote a project. The opportunity to receive free tokens can attract a lot of attention, leading to increased awareness of the project. As information about the airdrop spreads through social media, communities, and news media, the project can be exposed to a wider range of potential users.
2.2 Promoting Community Participation
Airdrops are an effective means of encouraging users to participate in the project community. Many airdrops require conditions such as following social media accounts or joining communities like Discord, which encourages users to learn more about the project and participate in community activities. This user engagement plays an important role in the long-term growth and development of the project.
2.3 Token Distribution and Liquidity Securing
Airdrops contribute to the decentralization and increased liquidity of tokens by distributing them to many users. Distributing tokens widely in the early stages can reduce the possibility of market manipulation by a small number of traders or investors, and can activate the actual use and trading of tokens. This helps to enhance the soundness and sustainability of the project.
2.4 Acquiring Potential Users and Supporters
Users who receive tokens through airdrops are likely to become early users of the project. Although many people sell airdropped tokens immediately, interest and attachment to free tokens can lead to actual service use. This can play an important role in the initial growth of the project and strengthening network effects. Additionally, airdrop participants can also play a role in recommending or promoting the project to other users based on their positive experience with the project.
3. Limitations and Inconveniences of Existing Airdrop Methods
3.1 Complexity of Wallet Creation and Management
One of the biggest entry barriers in the existing airdrop participation process is the creation and management of cryptocurrency wallets. For general users familiar with the Web2 environment, wallet creation can seem complex and difficult. Often, they need to memorize 12-24 seed phrases or go through unfamiliar processes to create a wallet. This causes many Web2 users to hesitate to participate in airdrops.
3.2 Lack of Understanding of Blockchain Technology
Blockchain and cryptocurrency are still unfamiliar technologies to the general public. Most Web2 users may find it difficult to fully understand the working principles of blockchain and the meaning of airdrops. Lack of understanding of the technology can cause anxiety and skepticism about participating in airdrops, ultimately becoming a factor that lowers participation rates.
3.3 Complexity of Airdrop Participation Process
Existing airdrops often have complex participation processes that are not user-friendly. While this may not be a problem for those familiar with Web3, it's very different for Web2 users. If the procedures required for airdrop participation are too numerous or technically difficult, users give up midway. Also, information about airdrops is often scattered across various channels, and participation methods are not clearly guided, adding to users' confusion.
4. Analysis of Airdrop Participation Process and Drop-off Points
4.1 Checking Airdrop Information
- Users encounter airdrop information through websites, social media, etc.
- Potential drop-off: Users may drop off if the airdrop information is unclear or seems untrustworthy.
4.2 Wallet Creation or Connection
- To participate in an airdrop, users need to create a cryptocurrency wallet or connect an existing one.
- Potential drop-off: Users may drop off if the wallet creation process is complicated or they feel burdened by private key management.
4.3 Social Media Follow or Forum Registration
- Some airdrops require following the project's social media or joining the community as a participation condition.
- Potential drop-off: Users may drop off if the follow procedure is cumbersome or inconvenient.
4.4 Airdrop Application
- Users complete the application by entering necessary information such as wallet address on the airdrop application page.
- Potential drop-off: Users may drop off if they feel burdened by the application itself, if too much information is required, or if related terms are difficult.
4.5 Receiving Airdrop
- If airdrop conditions are met, tokens are transferred to the user's wallet.
- Potential drop-off: Users may drop off if the time to receive the airdrop is too long, or if information about the reception time or progress is not provided.
5. Improving Airdrop Participation through Solutions
5.1 Overview and Characteristics of WaaS
WaaS (Wallet-as-a-Service) solutions provide user-friendly interfaces and ease of use to help Web2 users easily participate in airdrops. The Wepin wallet abstracts the complexity of blockchain technology and provides an environment where users can intuitively manage cryptocurrency wallets.
This lowers the entry barriers of existing airdrop methods and allows more users to benefit from airdrops. Currently, the Wepin wallet provides a Droplink solution and plans to update to a Droplink solution that can airdrop not only NFTs but also general tokens in the future.
5.2 Easy Wallet Creation via Email
The Wepin wallet currently provides a feature through the Droplink solution that allows users to easily create wallets with just an email. Users can create a new wallet by entering their email address and going through a simple verification process. This greatly simplifies the existing complex wallet creation process, creating an environment where Web2 users can easily participate in airdrops. Email-based wallet creation is a familiar and convenient method for users, effective in lowering psychological barriers to airdrop participation.
5.3 Simplification of Airdrop Participation Process
The Wepin wallet simplifies the airdrop participation process to a minimum number of steps, enhancing user convenience. It automates complex procedures and minimizes tasks that users need to perform directly. For example, it automatically checks if airdrop conditions are met and supports users to participate in airdrops with a single button click. It also plans to update to provide integrated airdrop information in one place using the solution in the future, making it easy for users to understand. This can reduce users' burden of airdrop participation and increase participation rates.
5.4 User-Friendly UI/UX
The Wepin wallet provides an intuitive and user-friendly interface (UI) and user experience (UX). The main functions of the wallet and the airdrop participation process are visually clearly expressed, allowing users to easily understand and utilize them. Additionally, through UX design that considers users' behavior patterns and preferences, it maximizes user convenience in the airdrop participation process. This contributes to naturally inducing Web2 users to participate in airdrops without resistance.
6. Expected Effects of Airdrop Marketing Using the Wepin Wallet
6.1 Lowering Entry Barriers for Web2 Users
The Wepin wallet has the effect of lowering entry barriers to cryptocurrency and blockchain technology by providing an environment where Web2 users can easily participate in airdrops. Through email-based easy wallet creation, intuitive UI/UX, and simplified airdrop participation process, Web2 users can benefit from airdrops without resistance. This can contribute to expanding the base and popularization of the cryptocurrency market.
6.2 Improving Airdrop Participation and Success Rates
Airdrops using the Wepin wallet can contribute to increasing participation and success rates by providing a user-friendly participation environment. The simplified participation procedure and improved user convenience lead to more users participating in airdrops, helping projects secure initial user bases and achieve token distribution goals. Also, improving the management and usability of airdropped tokens increases user satisfaction and enhances the actual performance of airdrops.
6.3 Promoting Close Interaction between Projects and Users
Airdrops through the Wepin wallet can be an opportunity to promote close interaction between projects and users. It can draw users' interest and participation in the project through airdrops, and based on this, build continuous communication and feedback channels. This provides opportunities to reflect users' opinions on project improvement and development, contributing to increasing user loyalty and trust.
6.4 Contributing to Cryptocurrency Popularization
Airdrops using the Wepin wallet can contribute to the popularization of cryptocurrency and blockchain technology by promoting the participation of Web2 users. Through airdrops, more people encounter and experience cryptocurrencies, which can lead to improved perception and increased acceptance of cryptocurrencies. Additionally, the Wepin wallet provides user-friendly interfaces and functions, helping users learn and adapt to cryptocurrency and blockchain technology. This can contribute to expanding the base of the cryptocurrency market and increasing the potential for real-life application of blockchain technology.
7. Conclusion
WaaS solutions play an important role in providing an environment where Web2 users can easily access cryptocurrency and blockchain technology. The existing complex and user-unfriendly environment has acted as an entry barrier for many users. WaaS solutions solve these problems and contribute to leading the popularization of the cryptocurrency market by providing user-centric interfaces and functions.
In particular, the use of WaaS solutions in marketing promotions such as airdrops helps induce more user participation and increase the likelihood of project success.
The Wepin wallet is a representative example of a WaaS solution, contributing to improving airdrop participation and enhancing user convenience through the Droplink solution. It is expected to play a role in promoting Web2 users' participation and increasing the success rate of airdrops through email-based easy wallet creation, intuitive UI/UX, and simplified airdrop participation processes.
In the future, the Wepin wallet is expected to provide more convenient and useful value to users by continuously improving and expanding various cryptocurrency services and functions, not just airdrops. Through this, the Wepin wallet is expected to play an important role in promoting cryptocurrency popularization and blockchain technology utilization.
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