Could NFA become the next big acronym in the crypto space?

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Could NFA become the next big acronym in the crypto space?
Changelly


Airdrops have become a livelihood in the cryptocurrency world — and for good reason.

They are an indispensable marketing tool for emerging projects looking to make a splash in their ecosystem.

Done well, distributing free tokens to the public can help drive demand — and provide huge benefits to recipients. After all, if these altcoins later end up being listed on major exchanges, their value could explode.

Minergate

Unfortunately, headwinds have begun to appear. These events not only attract enthusiasts who are passionate about what the project has to offer, but also “airdrop hunters” who are simply looking for a quick way to make a profit.

Airdrop hunters usually want to sell the tokens they receive for free as soon as possible. This could be bad news for cryptocurrency projects in their early stages — disrupting carefully cultivated token economics and causing coin values ​​to drop.

The current bear market has found another problem. Many projects are now pushing back their timelines for unlocking new tokens — until the economic environment improves a little. While this is usually in the best interests of the project and its investors in the long run, it can be disappointing news for those who won tokens in the airdrop. Why? Because they are no longer able to freely trade or liquidate digital assets to which they are entitled.

So… what’s the answer? Can airdrops revive and eliminate some of the drawbacks that have emerged in recent years? Is there a way to benefit hodlers – even if they haven’t gotten their tokens yet?

How NFTs Shake Airdrops

Currently, projects are trying to walk a tightrope between gaining publicity and engaging in marketing tactics that could harm their ecosystem. How can I get new users to follow Telegram or Twitter accounts to get empty investment slots and incentivize them to stay in the community for a long time?

Irreplaceable Airdrops (also known as NFAs) may be the answer here. And, as you might expect, they combine some of the technologies NFTs rely on, creating a “win-win” situation for both the project and the airdrop winner.

NFAs are designed to represent the true value of airdrop rewards when initial DEX offerings (also known as IDOs) occur. This is achieved through a model not too similar to a futures contract – an agreement to buy or sell an asset that will be activated at a future date.

The only difference is that the project owner issuing the NFA commits to deliver the token or other digital asset at a future release date. In this mode, there is a unique and irreplaceable gift as each airdrop winner will eventually receive a different reward.

In this case, the non-fungible airdrop would have a mechanism that would allow holders to claim their tokens when the project is launched – in effect capturing the value of future tokens. Alternatively, instant returns can be achieved by trading this NFA on a peer-to-peer marketplace. What makes this concept so compelling is that those who choose to trade now will miss out on benefits in the long run.

Irreplaceable airdrops can be equipped with exclusive avatars and special perks, such as discounts and free trials on goods and services offered by crypto projects. Holders can also be granted exclusive early access to future features – even better, their tokens will be waiting for them at launch.

eat your cake

Arken Finance says it is the mastermind of the world’s first irreplaceable airdrop, a concept that has the potential to change the DeFi landscape immeasurably.

DeFi trading portals can be found across eight networks – with the goal of giving investors more trading tools while reducing friction.

Arken started its airdrop campaign back in November 2021, but it was delayed as the market started to cool. Now, it’s spearheading the NFA as a way to spark excitement about its future plans without falling into the common pitfalls of airdrops that have surfaced.

Now, the 2,000 winners of its trading competition have received their own NFA rewards – each with a different amount of tokens stored, and each with a different benefit. They will be able to withdraw this cryptocurrency at a later date, but at the same time have a lot of exclusive advantages to keep them busy.

“The team believes strongly in this application and believes this technology can be marketed to DeFi project owners in the future,” Arken said in a recent blog post.

While enthusiasts may have missed out on having the first-ever NFA during the initial airdrop, the project says follow-on rounds are planned for the future.

Some perks include waived fees for the first 24 hours of trading matches – NFA holders will have their own special tier in the match. On this mini-competition track, they will then be entitled to separate rewards. Additionally, with exclusive insights and fast-track customer support available through the VIP Discord channel, owners will have a front-row seat to the premium features Arken Finance has in the pipeline.

It’s a bold experiment that could unleash a new level of loyalty in first-time crypto projects. And for those who win the airdrop, it offers much more than tokens. Not only will they have a status symbol in the form of a unique avatar that a few members of the community have, but they will have an enhanced experience through VIP channels and front-line customer support. For those who truly believe in the potential of the project, this is gold dust in itself.

Excitement continues as Arken Finance’s cutting-edge experiments continue — the project hopes “NFA” will be the next acronym to become prolific in crypto circles.

Disclaimer. Cointelegraph does not endorse any content or products on this page. While we aim to provide you with all the important information we can obtain, readers should do their own research and take full responsibility for their decisions before taking any company-related action, nor can this article be considered investment advice.

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