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What Are Cryptocurrency Giveaways

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There are few reasons why giveaways are a positive thing, but there also a lot of negative consequences. As giveaways are, on occasion, the cause of a community revolt or negativity towards a certain Cryptocurrency, it's best to look into this a bit further.

We'll take a closer look at some of the main reasons why you can do a giveaway, and what the possible effects can be :

- Giving away Cryptocurrency when the coin launches

This will initially get you a lot of people who will download your coin's client , just to get their coins and leave it at that. Of all the people who downloaded the client, less than half will actually mine the coin later on , let alone support its longevity.

The reason this will create a negative atmosphere around your Cryptocurrency, is because those coins you are giving away, are basically a premine. Those kind of things do not go over well with the general crypto enhusiasts.

We will feature an extended discussion on why & when premines ARE acceptable , in the first edition of our free digital magazine , which will be available for download on January 30th.

Besides that, it will also give a lot of people a bunch of coins they will dump at bottom prices on an exchange as soon as they get the chance. This means the value will get driven down during the first days on the exchange, and not all coins can or will recover from that.

- Giving away Cryptocurrency in exchange for social media followers/likes

Sure, you will get a lot of social repose in a short period of time, but they won't interact with you for the most part. They'll just represent a meaningless number. The ones who do interact on social media are the ones who would do so regardless of any giveaway.

- Giving away Cryptocurrency for poll votes :

This is a practice that should be avoided at all costs. Poll votes are far from a honest representation to begin with, so why would you want to make it worse?

Any Cryptocurrency that wants to be taken seriously, does not participate in, nor condone, such giveaways.

- Giving away coins in the form of bounties in return for development

Now this is a good reason to create a Cryptocurrency giveaway. If you want your coin to be successful, you will need (someone) to develop services for your coin.

This can range from website translations, to games,  to a custom payment gateway... Endless opportunities. It also means people will support your coin, because they have been a part of its development. It's not exactly an emotional tie to the coin , but it's as close as people will get to Cryptocurrency.

As you can see , giveaways have far more severe and negative consequences than people might realize. There are ways to do it right, but they aren't explored often enough in the world of Cryptocurrency yet. We can only hope that will change in the near future.