I find it simply fascinating that we are literally getting tons of free money thrown at us in the crypto space in the form of airdrops. It gets so ridiculous that we have no idea of the potential value that project possesses and may simply choose to ignore the airdrop (again, free money!) and focus on other things instead. There are at least a handful of airdrops I have received during my stint with crypto that I have either forgotten about, or am yet to explore.

The nature of business has changed over the years with current demand largely customer driven, meaning that a great product doesn't always mean market acceptance. There is an increasing number of great, innovative products and solutions being tossed around consumers on a daily basis, so it pays to stand out or get swallowed up by competition.

Incentivizing customers is not new, particularly for products seeking to gain market share and acceptance. Even older brands still roll out incentives to keep their customer base loyal. The customers of the current era are meant to be royalty, but sometimes irrational decision making ensures that we do not end up with the best products and solutions from the poll.

Essentially though, the more competitive a market is, the more difficult it is to penetrate. Customers can be ruthless at times with product acceptance and garbage products quickly get rejected. Even the good ones struggle though when trying to penetrate the market, save for those who have a ton of capital to spend on large marketing campaigns. Therefore the incentive system is the most popular method for smaller businesses to stage a market entry, then penetrate by the value of their product or solution.

In the crypto space, the most popular method is in the form of airdrops. They occur when a project rolls out its tokens for free and gives a number of pre determined supporters a chance to obtain them. The users are usually determined by previous interest in the said or similar project as the developers want to ensure that the airdrops are effective in their objectives.

The vast majority of those who receive these airdrops simply dump them instantly, leading to an eventual downturn in prices. My guess is that most airdrops don't meet their objectives as it takes more than just free money to keep users interested and actually try out the product. Let us not forget that our very Hive and some of its second layer projects gave out airdrops during their launch.

Conclusion

I feel Hive succeeded as a result of the communities ability to already see its value. Many projects do not have that. Yet as the space matures the strong value projects are going to succeed anyways, leaving us in disbelief that they once offered us free money to get our attention.

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