Peter Smith, CEO and co-founder of the company and wallet service Blockchain, today announced a crypto giveaway to the tune of $125 million worth of Stellar lumens (XLM). Smith said the airdrop is in celebration of the company "adding full support for XLM in the Blockchain Wallet."
The giveaway is part of the company's Blockchain Airdrops program, announced last month as an effort to promote decentralization and adoption across cryptocurrency networks. The team believes that airdrops "serve a discovery function," allowing individuals to learn about new crypto-assets and participate within different networks.
Smith noted that Blockchain is starting its airdrop program with Stellar because of the network's scalability, low-cost transactions around the world, and overall healthy ecosystem, among other reasons. Further, the company is collaborating with various institutions on the airdrop, such as Stanford's design institute (or d.school), educational platform Code.org, and software company Network for Good.
According to Smith, the Stellar giveaway will be the largest airdrop in crypto history. Those who sign up and have their identity verified will receive $25 in XLM, until the $125 million is depleted. There is currently a waitlist to join.
Airdrops are a popular tool within the blockchain and crypto community. Giving away money is by no means a new economic concept, but in the world of crypto – where there are coins for everything from veganism and the LGBTQ+ community to doges and Japanese cats – the network effect becomes especially relevant.
It makes sense to offer millions in XLM when the cryptocurrency trails behind the likes of bitcoin, Ether, Ripple, and other coins, according to data from CoinMarketCap. Stellar, the thinking goes, will be more successful with more users. $125 million might as well be petty cash in terms of Stellar's long-term business goals.