Exploring the Impact of Cryptocurrency Airdrops on User Engagement in Online Gaming Communities
1. Introduction
2. Literature Review
3. Understanding Cryptocurrency Airdrops
4. User Engagement in Online Gaming Communities
5. Methodology
6. Data Collection and Analysis
7. Case Studies
8. Discussion and Findings
9. Theoretical Implications
10. Practical Implications
1. Introduction
The term "cryptocurrency" is an umbrella term for a collection of technologies capable of completely reimagining the way life has conventionally been lived. Differences between the technologies coined under the cryptocurrency umbrella are great; however, one commonality stands out: the ability to provide a trustless, permissionless way to create and manage exchangeable tokens. These tokens can be in the form of securities (STOs), virtual goods (NFTs), and game coins (BTC, ETH). Most notably, the first two are novel, if not futuristic, concepts only very recently made possible because of the various advances of this technology. Bitcoin (BTC) is well known for its potential to act as data transmission for monetary value, as a functioning transaction network with costs, confirmation, and finality, and more robustly, as a store of value.
Aside from incentivizing the GPU and ASIC miners with the BTC electronic currency, airdrops are the main impetus for transacting with the BTC platform.An instance of this technique in action would be a Bitcoin airdrop. You will receive some Bitcoin just for entering any store that is connected to this event. You might get extra Bitcoin if you make a purchase in-store.
The term "cryptocurrency" is an umbrella term for a collection of technologies capable of completely reimagining the way life has conventionally been lived. Differences between the technologies coined under the cryptocurrency umbrella are great; however, one commonality stands out: the ability to provide a trustless, permissionless way to create and manage exchangeable tokens. These tokens can be in the form of securities (STOs), virtual goods (NFTs), and game coins (BTC, ETH). Most notably, the first two are novel, if not futuristic, concepts only very recently made possible because of the various advances of this technology. Bitcoin (BTC) is well known for its potential to act as data transmission for monetary value, as a functioning transaction network with costs, confirmation, and finality, and more robustly, as a store of value.
Aside from incentivizing the GPU and ASIC miners with the BTC electronic currency, airdrops are the main impetus for transacting with the BTC platform.An instance of this technique in action would be a Bitcoin airdrop. You will receive some Bitcoin just for entering any store that is connected to this event. You might get extra Bitcoin if you make a purchase in-store.
Finally, if you play a lottery by scanning a barcode with a smartphone, you might win a very large prize. While all of these methods of possibly obtaining BTC are a form of airdrop, only the walking in store and playing the lottery methods of acquiring BTC occur without any direct or indirect effort. The expectation is that after incurring the initial airdrop, users will begin conducting regular business through the BTC network.
2. Review of Literature
The internet community is paying close attention to distributed ledger technology, or blockchain, because of its many benefits, which include tamper-evidence, trust, decentralisation, and self-control. Due to these characteristics, virtual currencies, also known as cryptocurrencies, have become more and more used in a variety of contexts. These include voting, crowdfunding, online social networks, and online gaming communities, in addition to being used for investments and payments.
The internet community is paying close attention to distributed ledger technology, or blockchain, because of its many benefits, which include tamper-evidence, trust, decentralisation, and self-control. Due to these characteristics, virtual currencies, also known as cryptocurrencies, have become more and more used in a variety of contexts. These include voting, crowdfunding, online social networks, and online gaming communities, in addition to being used for investments and payments.
Airdrops, which have appeared recently, are a new form of coin distribution. Here, users can acquire coins freely without any cost. As a result, a large number of users will continuously visit the airdropped tokens' issuing platform or other online gaming communities, leading to increased user engagement.
At first sight, an airdrop is a digital marketing tactic. Consequently, the public nature of blockchain transactions makes airdrops a transparent, fair, cheaper, and less complex distribution mechanism. However, a wide variety of airdrop approaches have been introduced, both in terms of the public key Altcoin airdrop and the private key token airdrop. Why do airdrops have certain impacts on user participation, user engagement, or the value creation of a community? From a community perspective, the user will first participate and then show engagement with the participation of others. One definition of "user engagement" is the process of engaging users with a site or an application for a compelling interactive experience. However, a compelling interactive experience aims to increase the quantified or subjective value/cost ratio for the user.
At first sight, an airdrop is a digital marketing tactic. Consequently, the public nature of blockchain transactions makes airdrops a transparent, fair, cheaper, and less complex distribution mechanism. However, a wide variety of airdrop approaches have been introduced, both in terms of the public key Altcoin airdrop and the private key token airdrop. Why do airdrops have certain impacts on user participation, user engagement, or the value creation of a community? From a community perspective, the user will first participate and then show engagement with the participation of others. One definition of "user engagement" is the process of engaging users with a site or an application for a compelling interactive experience. However, a compelling interactive experience aims to increase the quantified or subjective value/cost ratio for the user.
3. Understanding Cryptocurrency Airdrops
As a marketing technique that leverages the transparency and cryptographic verification capacities of blockchain technology, the term 'airdrop' was first popularized with the rise of initiatives like Omni, Counterparty, and Ethereum. The term is derived from the concept of dropping supplies using airplanes to individuals in isolated areas. The term was adapted in the context of the cryptocurrency domain, where free tokens are distributed to individuals holding or actively using an existing cryptocurrency.
In a nontechnical perspective, an airdrop can be defined as a process that involves the transfer of cryptocurrency tokens to individuals who perform certain tasks or are recipients of the funds for other reasons. Airdrop participants are typically required to create a digital wallet and provide their public wallet address to be used for cryptocurrency token distribution prior to the airdrop distribution date. Companies initiating airdrop campaigns may stipulate additional requirements such as the installation of a digital wallet application, the completion of a Know Your Customer (KYC) identification process, or the completion of a survey.
The timing and scope of airdrop activities define the two distinct classes of airdrops: pre-token sale and post-token sale airdrops. Pre-token sale airdrops are conducted prior to the sale of cryptocurrency tokens (also known as token presale or initial coin offerings) and are used to create and maintain public interest or to implement an incentive-based collection mechanics, according to the information provided by the airdrop organizers. In contrast, post-token sale airdrops are conducted after the token sale stage and cryptocurrency community members are rewarded for their active participation and engagement.
Distributions of airdropped tokens are typically proportionate to the amount of cryptocurrency units an address holds. According to a leading blockchain analytics provider, as much as 1809 airdrops were executed from September 2017 to September 2018. During the year of 2017, it was reported that over 244 such events were executed on the Ethereum network with over 126 selected as fraudulent cases.
Encouraged by the potential of reaching a large user base at minimal cost, investigators from various disciplines seek to understand the airdrop phenomenon and determine user financial behaviors, technological preferences, and engagement levels within the context of the recipient platforms.
In a nontechnical perspective, an airdrop can be defined as a process that involves the transfer of cryptocurrency tokens to individuals who perform certain tasks or are recipients of the funds for other reasons. Airdrop participants are typically required to create a digital wallet and provide their public wallet address to be used for cryptocurrency token distribution prior to the airdrop distribution date. Companies initiating airdrop campaigns may stipulate additional requirements such as the installation of a digital wallet application, the completion of a Know Your Customer (KYC) identification process, or the completion of a survey.
The timing and scope of airdrop activities define the two distinct classes of airdrops: pre-token sale and post-token sale airdrops. Pre-token sale airdrops are conducted prior to the sale of cryptocurrency tokens (also known as token presale or initial coin offerings) and are used to create and maintain public interest or to implement an incentive-based collection mechanics, according to the information provided by the airdrop organizers. In contrast, post-token sale airdrops are conducted after the token sale stage and cryptocurrency community members are rewarded for their active participation and engagement.
Distributions of airdropped tokens are typically proportionate to the amount of cryptocurrency units an address holds. According to a leading blockchain analytics provider, as much as 1809 airdrops were executed from September 2017 to September 2018. During the year of 2017, it was reported that over 244 such events were executed on the Ethereum network with over 126 selected as fraudulent cases.
Encouraged by the potential of reaching a large user base at minimal cost, investigators from various disciplines seek to understand the airdrop phenomenon and determine user financial behaviors, technological preferences, and engagement levels within the context of the recipient platforms.
4. User Engagement in Online Gaming Communities
One of the important areas of study in social communication is user engagement, which is necessary for cooperative behaviours in users and players such as involvement, interaction, and intrinsic motivation. many user engagement assessment techniques have been put forth in many academic domains. In the computer sciences, researchers in academia and industry often focus on various platforms providing some functionalities in online groups that support collaborative socializing, communicating, and organizing. Researchers found value in many network measures, including centrality, in order to assess the various types of user engagement.
Many studies in the literature related to user engagement in online social networks use mining techniques of the conversations to assess the user contributions, help seeking, and interactions of their participants. However, this view is limited in the common online environments supported by platforms like Facebook, Twitch, Twitter, or YouTube, where only some user actions can be observed. In contrast, on open networks like the blockchain, the view is total and all user interactions are observable, as every user action between a chain of blocks is saved in this public ledger. As a result, studying the online gaming dynamics using regular blockchain data is possible because users are creating hundreds of transactions each second while they interact with the blockchain.
5. Methodology
The methodological framework, comprising seven sub-processes, was proposed, and the research difficulties were transformed into research questions in order to carry out the framework and investigate the effect of bitcoin airdrops on user involvement in online gaming communities. The statistical analysis that was led by the data provided the answers to these study questions.
To operationalize the proposed methodological framework, in quantitative analysis, data selection and data collection methods are provided, after which statistical tests, including independent two-sample t-tests and logistic regression analysis, were conducted to answer the selected research questions. In the qualitative analysis, open coding, axial coding, and selective coding were used to answer the underlying psychological mechanisms of airdrops on user engagement.
The suggested approach employs a combination of statistical testing and psychological investigation to operationalize its investigation of the effects of bitcoin airdrops on user participation in online gaming communities. A number of smaller procedures make up the analysis process, such as data gathering, data selection, and qualitative and quantitative analysis. Then, we use both quantitative and qualitative results for verification and discussion. The research findings can help the research community better understand how cryptocurrency airdrops impact user engagement in online gaming communities and how they help promotion personnel to better conduct virtual asset management.
6. Information Gathering and Evaluation
Using Google Cloud's BigQuery engine, we gather the necessary data from bitcointalk.org and the Ethereum blockchain. Launched in 2015, the Ethereum blockchain is a popular platform for distributing tokens, or cryptocurrency, and operating decentralised apps. We identify members of certain user groups who received airdrops by specifying their membership in certain mass-communication Telegram channels with unique names or promotional text. We count the presence of usernames in these channels as particular users in each group had connected to the airdropping activities before receiving airdrops. We collect username, group membership, Ethereum address, and airdrop quantity for each recipient of the existing or new token. We also collect posts of usernames in bitcointalk.org to extract their announcements to Ethereum addresses of ownership, their face values, as well as Bitcoin addresses from transactions of token sales.
To account for the potential for gaming incentives from findings, we conduct online gaming present in the type and reward individuals to play "Anarchy Online," a popular online role-playing game (RPG) that the marginal contribution of other factors. Since the MAGI affected migration patterns and since the MAGI gaming typing speed test facilitated skill-based tasks involving specialized INT-COV typists group with the dark green printer as a common account. Individuals are given 7 hours, one of the other speed type tests was Siri, controlled by the Online so that all administrators of "Anarchy Online" would be races that were clearly visible in the photo below. We assign each typist to one of five groups to receive a reward when playing. Each group will be assigned to one of five conferences: the Game Developers Conference, the Game Developers Diary Expert Conference, the European Conference on Development Data-Intensive Research, the Conference on Software Engineering Practice, or the Human Research and Development Conference. We use Gmail accounts affiliated with each conference website to send conference listings to conference attendees or to search the web for appropriate lectures.Using Google Cloud's BigQuery engine, we gather the necessary data from bitcointalk.org and the Ethereum blockchain. Launched in 2015, the Ethereum blockchain is a popular platform for distributing tokens, or cryptocurrency, and operating decentralised apps. We identify members of certain user groups who received airdrops by specifying their membership in certain mass-communication Telegram channels with unique names or promotional text. We count the presence of usernames in these channels as particular users in each group had connected to the airdropping activities before receiving airdrops. We collect username, group membership, Ethereum address, and airdrop quantity for each recipient of the existing or new token. We also collect posts of usernames in bitcointalk.org to extract their announcements to Ethereum addresses of ownership, their face values, as well as Bitcoin addresses from transactions of token sales.
7. Real World Applications
Beyond marketing tools, airdrops can serve a variety of real-world applications. A few safe observations on the matter can be made. In the context of cryptocurrencies, one of the main challenges that the ecosystem might face in the future is the difficulty of distributing a certain amount of a token. This difficulty is certainly a concern for owners of non-fungible tokens (NFTs), as we pointed out in the previous section. In addition, NFTs typically contain metadata that needs to be maintained even in the event of a token transfer. Airdrops, thanks to the ability of the receiver to decide not to accept the token, also offer a method to manage metadata that directly intersects with the issue of distribution. In addition, combating bot activity in online gaming platforms can also leverage the use of wallet-address verification from a platform to prevent airdrop accounting abuse. Although a long list at the beginning of this article showed that the phenomenon is manifold and encompasses many more uses, the fact remains that with the study of particular use-cases, these applications of the airdrops will also evolve in the future.
There are many potential real-world applications of airdrops (sending "free" coins to addresses). They can serve as a marketing tool to gain a large number of users all at once. The airdrop can be tied to ownership of NFTs, participation in tournaments, filling out surveys, participating in social networks, etc. There are hundreds of platforms, from Discord servers to Indie game databases and streaming apps with customer lists. By analyzing online servers, a company could reward highly contributing users (with all kinds of activities). They could send a tip and pay for the artwork they are sharing or send coins as a curation reward, secondary economy subsidy, and giveaways for being in the server. Airdrops can serve as a universal basic income or stimulus for a digital economy. Any website or web app with a developer's domain name nowadays has a Gitcoin profile, Web3 app networks. If developers wanted to onboard a bunch of users to their without the usual risk, costs, fees, sometimes prohibitive KYC, they could use his list of Gitlab with public git repos. Digging for his privacy sake can be more difficult, so the debate around the worthiness of giveaways is unlikely to find consensus, even more so since a "Thank you, developer" can be included in any transaction.
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