Blockchain.com announces support for Airdrops

The world’s largest wallet provider Blockchain.com is planning the launch of an Airdrop extension. In the future, token developers will be able to reach the nearly 30 million wallets for Airdrops. The company announced this in a recently published white paper.

Airdrops are a proven means of distributing new tokens. Without users having to buy the new coins, mine them or make any other efforts, they are provided with free tokens by the publisher. What at first sounds like a rather airy number has good reasons: Token-based networks build on a certain network size. This means that a network can only be used with a sufficient number of users. Airdrops are therefore a convenient way of achieving the necessary distribution of tokens at a stroke. The white paper states:

“Airdrops are good for those who want their token-based networks to flourish. Airdrops can quickly and effectively decentralize these networks and increase their usability through network effects.

Active monitoring by Bitcoin revolution scam

So can wallet owners look forward to a real rain of money? Rather like this: Is Bitcoin Revolution a Scam? Read This Review Before You Sign Up!. The company strives for an active monitoring of the Airdrops and advertises with high quality demands on the implementation. Only those projects that are designed as follows can qualify for the Bitcoin revolution scam programme:

The Airdrop should be addressed directly to the Bitcoin loophole scam

It should be aimed at a broad user base and onlinebetrug says it is scam. The distribution should be free and fair. The focus should be on the purpose of the token and not on the price increase. Airdrops do not imply use. Since there is no need to invest in advance, Airdrops does not initially entail any financial risks for users. However, it is uncertain whether the Bitcoin loophole scam projects will ever result in concrete benefits.

“Free money” actually doesn’t sound bad. But Airdrops are above all one thing: a clever PR gag. Because the underlying calculation is, besides the decentralization of the network, simply to generate attention.

Whether or not the wallet users of Blockchain.com will be exposed to a flood of useless tokens in the future depends primarily on the company’s moderation.

No concern about monetary policy

Because the value of all crypto tokens is low compared to the global money supply, monetary policy does not need to worry about their effectiveness at the moment. The President of the Bundesbank was sceptical about the issue of digital central bank money. Interest rates on digital money or the possibility of negative interest rates would expand the scope of monetary policy if private individuals were unable to switch to cash. But there is a “serious catch”: Digital central bank money could enter into direct competition with bank deposits. However, if commercial banks had to offer interest premiums to prevent bank deposits from being converted into digital central bank money, their margins in the deposit lending business would continue to fall, which could be problematic for financial stability.

Warning of digital banking storm

Weidmann sees an even greater risk in digital bank runs. If savings can be transferred to one’s own account at the central bank at the click of a mouse in order to flee the private financial system, the threshold for an onslaught on the banks would presumably be much lower than in the analogue world. Weidmann also cited an example of this: if not only Northern Rock’s customers but also those of other British banks had brought their flocks to the central bank in the UK in the crisis year 2007, they would have completely destabilized the entire banking system.

The President of the Bundesbank also referred to critics who have identified the possibility of money creation by commercial banks as a weak point of the current monetary system, because these are a major cause of harmful credit cycles. Historical experiences with a single-stage banking system and with central lending by the central bank were “sobering”, central administrative economies had shown that the state or the central bank were not the better bankers.

No competition for cash

Weidmann was convinced that the need for crypto tokens and digital central bank money would not arise if central banks were to keep payment transactions up to date with the latest technology. He was keen on the Eurosystem’s efforts to enable banks to make central bank money payments in real time by the end of the year. This would enable transfers between private individuals in a matter of seconds around the clock, every day of the year, regardless of which bank they have their account with.

Referring to Agustín Carstens, managing director of the Bank for International Settlements, who had described Bitcoin as a mixture of financial bubble, snowball system and environmental disaster, Weidmann said he did not think crypto currencies were at least a convincing alternative to state money:

“For a stable monetary and financial system we do not need crypto tokens, but central banks committed to price stability and effective bank regulation.

Gregor HallmannGregor Hallmann has been a business journalist for 20 years. As editor of a news agency, the studied political scientist closely followed the Internet boom and the subsequent bursting of the dotcom bubble around the turn of the millennium. Since then, as a freelance journalist, he has been writing critically about economics, finance and investment – and also has crypto currencies and block chains in mind.