Tuesday 6th November 2018 saw crypto wallet provider, blockchain, announce that it will distribute cryptocurrency to millions of their users. This is perceived as the largest blockchain giveaway of this kind.
The giveaway, termed as “airdrop” in crypto parlance will see each recipient getting approximately $25 worth of Stellar, a common cryptocurrency. This will be part of the $125 million overall distribution. Stellar is currently ranks sixth among cryptocurrencies and has a market share value worth more than $5 billion.
A statement released by the company stated, “the giveaway is accessible to anyone owning a blockchain wallet.” The statement went on to further read, “the first group of recipients will receive stellar native digital currency-lumens for free this week.”
Peter Smith, Blockchain CEO speaking to the Fortune said that the firm is using Stellar in part, as he believes it is a representation of blockchain’s superior capacity to conduct huge transaction volumes.
Jed McCaleb, the founder of Stellar, established Ripple, a cryptocurrency firm and Mt. Gox. Mt. Gox is an online exchange program, but it is currently defunct.
Stellar, which is now Ripple’s and Etheruem rival has also partnered with corporates such as IBM on easing fiat currency transactions in a number of countries. It also recently acquired Chain, a well-regulated blockchain service supported by Visa.
The distribution process
Smith further adds that the distribution process will take several months and the amount of Stellar received by the users will be affected by geography. He commented that existing holders of blockchain will be prioritized and that the firm has the right to change the terms of arrangement as the program is running.
Describing the arrangement, McCaleb remarked, “We believe that airdrops are key in the creation of a more inclusive-digital economy. Offering lumens at no cost is a way of inviting communities to design the services important to them. We hope to have international citizens eventually own and use lumen in both developed and developing economies”.