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In the crypto world, new projects use various methods to attract users.
Initially, ICOs (Initial Coin Offerings) were popular, but over time, many ICOs failed or became unreliable, leading to the emergence of alternatives like IEOs (Initial Exchange Offerings) and STOs (Security Token Offerings).
Another method to attract users is through airdrops. However, like ICOs, airdrops often resulted in unfair token distribution, with whales or cheaters benefiting more than legitimate users who genuinely supported the projects.
To address this issue, a new and more legitimate way to distribute crypto assets emerged: the Wallet Holder Offering (WHO).
What Is a Wallet Holder Offering?
A Wallet Holder Offering is when a specific wallet distributes tokens from its partners to users in exchange for completing certain tasks.
SafePal was the first wallet to introduce this innovative airdrop mechanism. WHO is designed to reward SafePal software and hardware wallet users by giving them access to partner tokens in a secure, decentralized, and user-friendly manner.
The amount of reward tokens each participant receives is determined by the number of participants and the number of tasks completed.
For example, to participate in an offering on SafePal, users may need to hold a certain amount of SEP tokens, complete tasks like joining or sharing partner social media handles, and then receive rewards based on their activity.
Currently Available Wallet Holder Offerings
Safepal is the first wallet to successfully conduct three WHOs.
The first one is with Tokocrypto, which is Indonesia’s leading crypto asset exchange, and the second one is OpenOcean which is the world’s first DeFi & CeFi full aggregator; the last one is a Moonpot which is a no-loss lottery protocol on the Binance Smart Chain.
All three offerings received a good response from the Safepal users.
But currently, except Safepal, no wallet came forward to conduct the WHO’s.
Benefits of Wallet Holder Offerings for Blockchain Project
Authentic User Base
In the old Airdrop mechanism, blockchain projects may end up issuing tokens to whales or scammers, who do not bring any value to the project even though they don’t care about it. They just see Airdrops get rich quick schemes that don’t have any cost.
But in WHO, the project gets an authentic user base who understand the project and see value in it because they’ve already passed the many tasks where they get enough information about the project if they feel the project is not worthy or don’t have any prior knowledge about the project they can’t complete the tasks and not become a part in the offering.
Immediate User Base
WHO campaigns provide projects with an immediate and valuable user base by tapping into the wallet’s existing users.
This method is more effective than airdrops, which often struggle to attract genuine interest without significant marketing.
Cost Saving
WHO substantially reduces the capital expenditures towards marketing funnels for acquiring initial users so the project team will be able to save time and effort towards administrative and marketing efforts and focus more on the project development.
Fair Distribution of Tokens
Tokens are distributed based on the number of participants and tasks completed, rather than on the holdings of large investors, ensuring a more equitable distribution.
Benefits of Wallet Holder Offerings for Users
Get Better Insight
By completing tasks, users gain a deeper understanding of projects, helping them make informed decisions.
Safety
Since tokens are distributed via trusted wallets, users are protected from potential scams.
Simple and Easy
Users earn rewards simply by using the wallet and completing tasks — there are no complicated rules, and rewards are sent directly to the wallet.
Final Thoughts…
Although Wallet Holder Offering is still relatively new, it has the potential to become one of the best ways to attract attention to blockchain projects and offer users additional earning opportunities.
What do you think? Share your thoughts in the comments.
Wallet Holder Offering: A New Token Distribution Model Explained was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.