WeChat Verification Without Friends: A New Approach to Airdrops in 2021

The world of Web3 primitives has seen a surge in activity over the past few months, driven by a new approach to airdrops. One innovative method is WeChat verification without friends, which hints at the possibility of receiving tokens and drives user behavior. This strategy has been used by founders since at least 2020, as evident from Uniswap's use of liquid incentives.

In exchange for taking on risk in trading illiquid SAFTs (Simple Agreement for Future Tokens), buyers often receive a discount. However, sellers rarely capture any value from these trades. Instead, they benefit from having immediate dollar liquidity to rotate towards other investments. Buyers, on the other hand, presume that the price of the token will trend higher.

As a result, buyers and sellers of token investments with long vesting terms seek liquidity from other investors who are willing to bet on the price of these illiquid tokens. In fact, I have had multiple interactions with OTC desks looking to create markets for illiquid SAFTs.

Our industry is known for quickly swinging from a buyer's to a seller's market. By 2019, ICOs had slowed down, and VCs (Venture Capitalists) regained control over how startups raised capital and when they could tokenize. Unfortunately, much of this was fueled by retail users who unknowingly funded exuberance.

In March 2017, when Cosmos conducted a $30 million ICO, many believed we were on the cusp of disrupting venture capital. Over the next year, close to $10 billion in capital from retail wallets flowed towards crypto-native startups. This influx of capital was unprecedented and marked a significant shift in the market.

WeChat verification without friends is an innovative approach that has the potential to drive user behavior and increase adoption rates. By hinting at the possibility of receiving tokens, founders can encourage users to engage with their products and services. As the industry continues to evolve, it will be exciting to see how this new approach shapes the future of airdrops and token distributions.

Wechat verification without friend 2021