Ethereum News Update
A three-year-old blockchain startup from MIT’s Media Lab recently accepted $20.0 million in venture capital, raising investors’ expectations about its upcoming airdrop.
The startup is called Eximchain. It is a blockchain company looking to adapt distributed ledger technology to supply chain management, which makes it a sliver less dull than it sounds.
For those who are unfamiliar with airdrops, they occur when a new cryptocurrency is freely distributed to investors. If you’re thinking that sounds like free money, you’re right. All you need to do is hold the right cryptocurrency at the right time.
Let me explain…
There are currently 1,564 cryptocurrencies trading around the world. Most of them are unremarkable, but even those with upside potential struggle to get noticed by investors.
Airdrops are one way to solve this problem.
Here’s how they work: developers simply give away a percentage of their tokens for free, which they do by dropping the tokens into investors’ cryptocurrency wallets.
Take Stellar Lumens, for example. Today, XLM is the eighth-biggest cryptocurrency in the world, but that wasn’t always the case. In fact, Stellar was virtually unknown until it airdropped 19 billion tokens into Bitcoin wallets.
Anyone holding Bitcoin as of June 26, 2017 could have claimed a portion of these tokens. You would have woken up with a higher balance in your portfolio, which, if you held until the end of the year, would have made you +1,000% returns. And it would have cost you nothing!
Still not convinced? I don’t blame you.
Investors are more terrified of scams than most people, in part because they understand that nothing comes for free. Well, don’t worry. The “free tokens” provided in an airdrop aren’t technically free anyway. They are the cost of raising a crypto’s profile.
You simply drop a few coins into Bitcoin or Ethereum—one of the platforms with high liquidity and enormous brand name recognition. This gets people excited and starts them trading the new cryptocurrency with gusto.
Before you know it, that token has rising volume and a price on the run.
Analyst Take
The upcoming airdrop by Eximchain could easily benefit Ethereum prices. Think about it: a group of investors infused Eximchain with cash days before. This should spur interest in the EXC token, which means they’ll wait for the airdrop in…Ethereum.
That’s right. Eximchain plans to airdrop the tokens into wallets of ETH HODLers.
I’m guessing this might ramp up inflows to Ethereum for the short-term, with the added side-effect of starting a minor rally in ETH prices. While this doesn’t exactly get ETH to our $1,500 Ethereum price forecast for Q2, it is undoubtedly good news for the troubled asset.
Source: Price Confidential