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An Analysis of the Latest Knuth Token $KTH Airdrop on SmartBCH

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Written by Β Β 286
1 month ago

Yesterday I reported about the upcoming airdrop of the $KTH token on smartBCH - which is the official token of the Knuth Bitcoin Cash software development team. The token is intended to be used as a tipping token and there will soon be a reward for staking it - allowing you to support the Bitcoin Cash software development while earning passive income at the same time.

And last night the $KTH Telegram group passed the 2,000 subscribers count - which triggered the airdrop.

How did the airdrop go?

The airdrop was handled a lot more professionally than most previous airdrops I have witnessed: The group members were given clear instructions in the pinned messages of the group well in advance.

In addition to that the members were informed that the airdrop would start once the member count passed 2,000. As soon as that occurred, the exact time for the airdrop was announced and multiple reminders were sent to the group.

Once the countdown was over, the group members were given a time window of 15 minutes to post their smartBCH addresses. This time window may have been a bit too narrow for some real users, unfortunately.

I also barely managed to post my address in time - as I was out and about and completely missed the countdown. But thanks to the #Club1BCH members who messaged me, I checked the $KTH Telegram group and I managed to submit my address just in time before the closing of the airdrop time window. Thank you guys from #Club1BCH for having had my back on this one! πŸ’š

Before and after the 15 minutes time window, smartBCH addresses were automatically deleted from the group chat which helped to avoid unnecessary spam messages - and it also determined a clear start and a clear finish of the airdrop. There was no ambiguity as to whether you posted your address early enough or not - which I appreciate.

After the closing of the address submission window, the admin, Fernando, checked if the same address has been posted multiple times - and he excluded people who maliciously posted their address more than once.

I definitely appreciate this check of double posting. I have noticed in some previous airdrops that some people posted their address several times and therefore received the airdrop multiple times. I agree with Fernando that this behaviour is dishonest and I applaud him for checking for it - and for excluding the corresponding addresses from the airdrop.

Unfortunately, I don't know if he also checked whether any Telegram account was posting multiple different addresses, but I assume he did check this, too, because he is a smart guy and he handled the airdrop very well.

The reward

50 $KTH - currently worth about $0.2 were sent out to almost 8,000 addresses.

In the comments after the airdrop I have seen several people complaining about the received crypto being currently of low value, but once again, I believe that Fernando is absolutely right. I think it was a great decision to airdrop a low value to so many accounts. Let me explain why!

Imagine he gave more value to the almost 8,000 addresses. Many of these addresses probably only participated in the airdrop to get "free money" - and they may not be interested in $KTH or in supporting the Knuth team or Bitcoin Cash.

These are probably the same people who complained about it. Would someone complain who plans to hold the token? Probably not.

What would such people most likely do?

I assume some would hold the token hoping that it appreciates in value. But many would probably dump it right away if the current value was higher.

And current token holders may anticipate that behaviour and they might sell a part of their position in anticipation of a big drop in price due to the airdrop. That could crash the token's price and it could reduce the liquidity so far that it becomes impossible to sell the token.

If that happens, people would probably shout "rug pull" and "scam"- when in fact the liquidity pool just became illiquid due to a high selling pressure. And we can see that this is not a hypothetical scenario - as this has happened just yesterday with $PHA. The $PHA creator renounced his ownership of the coin yesterday, because the selling pressure forced him to continuously add liquidity in form of BCH to the liquidity pool - and he simply ran out of BCH. The $PHA price has hit the bottom with a market capitalization of around $1,000 - which might actually be interesting for crypto bargain hunters. However, I doubt that we will see any new global highs in that token any time soon...

Back to $KTH

To avoid such a scenario in $KTH, I think that 50 $KTH is the perfect amount of tokens to be distributed. The amount is big enough to get people interested in the token - without giving them the selling power to potentially murder the price and the liquidity.

To sum up, it was a good airdrop.

But I wouldn't be me if I didn't have some constructive criticism. 😏

Here is what could possibly have been improved upon:

  • A bot checker could have been included in the group as it seemed like several bots were flooding the group with addresses.

  • And I believe that airdrops could be done for BCH supporters only. For instance using read.cash: The Random Rewarder could tip with airdrop tokens for one week - instead of tipping with BCH.

    Alternatively, another qualifying metric could be used to determine who receives the airdrop. Preferably one that excludes bots - and people who hate BCH anyway - and just come for the free money and to dump the airdrop and leave right after.

Here are some of the reactions to the airdrop - probably written by people planning to dump the token right after receiving it.

I have to add that one ungrateful person literally spammed the chat with her messages. She is a repeat offender - as I have seen this behaviour from her after other airdrops as well...

Then there were many people complaining about supposedly not receiving the airdrop - when in fact they didn't even use Metamask or they didn't even set up smartBCH - or they didn't add the token - all of which was explained in a pinned message in the group.

Here is a positive message for a change:

And then poor Fernando must have received a ton of private messages on Telegram for all kinds of reasons. How do I know? - Because these people flooded the group with "please check your private messages" or "I wrote a private message" or similar posts.

Summary

I do like airdrops and I do like participating in them. And I preferred this airdrop in many ways to many previous ones.

However, the smartBCH airdrops have summoned the mindless airdrop raiders - and hoards of bots.

The reason why I write this article is to show how Fernando handled that situation well - and to inspire what else could be done.

If you plan to airdrop a token, be aware of the current climate in smartBCH Telegram groups - and be prepared for what may await you.

Two things in the end

Remember when I said that the airdrop was triggered when the Telegram group passed 2,000 members last night? - Guess how many members there were in between starting a two hour countdown and ending the 15 minutes time window for posting addresses! Let me show you:

Literally 6,700 accounts joined within 2.5 hours. 🀯

And Fernando did something very clever for the next airdrop - or at least I think he is doing this: He monitors the accounts which received the airdrop. - Why? I assume to find scammers, dumpers and bots. And probably to reward holders in the next airdrop.

So if you are a real person, join the group and participate in the next $KTH airdrop!

Thank you for reading!

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Written by Β Β 286
1 month ago
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Comments

Big or small should be thankful because it was given for free, as much as I want to participate but I am very much late but atleast there are next times, and kudos to your friend FERNANDO for being generous

$ 0.00
1 month ago

Thanks to the KTH team I also got the airdrop some hours ago. Even though I joined the group late.

$ 0.00
1 month ago

Congratulations! πŸ€—

That's very nice of them. And sorry for the late reply. I have just seen your message.

$ 0.00
2 weeks ago

I have seen those people who complain a lot like for 0. 2 dollars? For real? πŸ˜… These people do not deserve it anyway if they are not willing to support BCH projects. Props to Fernando for handling all of these in the best possible way.

$ 0.05
1 month ago

I absolutely agree with you. If an airdrop is too generous and the wrong audience receives too much, it can really kill a token. I'm glad that Fernando made sure that won't happen with $KTH.

$ 0.00
1 month ago

Thanks for keeping a close eye on such Airdrops. Fernando seems determined to look for anyone to get an unfair advantage. I would be looking forward to the next airdrop definitely. It would be great if you can highlight similar airdrops in the future also.

$ 0.00
1 month ago

Thank you for your comment. I will definitely try to do so.

$ 0.00
1 month ago

The members boomed so fast.. Just a couple of hours... I wasn't able to participate coz I fall asleep while waiting 🀣 I hate the PHA. 😭 lost my investment

$ 0.05
1 month ago

Ah yeah, PHA also went pretty bad for me, but at least the price can't fall any further right now, because nobody provides liquidity for that token. πŸ˜‚

Maybe somehow it will become popular again, but it is a perfect example how an airdrop can destroy a token if most receivers decide to dump the token.

$ 0.00
1 month ago

When is the next airdrop po?

$ 0.05
1 month ago

I don't think that it has been announced yet. Maybe at 10k group members? Let's see. I will let you know if I get any new information. 😊

$ 0.00
1 month ago

I see, thank u po for the upvote, will wait for it then, Sir, just a message away po, lol, 'coz might join there again, just started doing that kind of thing po πŸ™‚

$ 0.00
1 month ago

I was late. It was too early. I've read those ungrateful comments. Why so demanding? Those are given for freeπŸ˜ͺπŸ˜ͺ . The massive number of new members surprised me to when I woke up today. Wow.

$ 0.05
1 month ago

Yeah, the airdrops get a lot of attention and quickly get out of hand. But this one was very well organised. πŸ‘ I'm sorry to hear that you missed it! There will be a second airdrop soon. 😊

$ 0.00
1 month ago

I was a bit sad. But that's fine. I was and am impressed with the smooth distribution too. Although some are really not so thankful with what they've received. Btw, salute to sir Fernando!

$ 0.00
1 month ago

I saw that a lot of ETH addresses were posted there. I suspect that they were bots. Fernando has a bot that sorts out these addresses. I bought some KTH myself because I missed the airdrop.

$ 0.10
1 month ago

The rate at which addresses were posted and at which Telegram accounts joined the group before, during and even after the airdrop was unbelievable.

I'm glad it was so well organised. Otherwise that would have been total chaos.

I'm sorry to hear that you missed the airdrop. There will be another one soon.

$ 0.00
1 month ago

It was a $0.2 airdrop, I didn't miss much. πŸ˜„ I have already bought more than 50KTH. But maybe I will watch it to participate in the next airdrop.

$ 0.00
1 month ago

Yeah, that's the great part. Those who missed the airdrop haven't missed much. I was pretty pissed about having missed the 1 million CATS airdrop and the 100k airdrop, too - which were worth up to $6k or so a couple of days ago. πŸ™ˆ

Nice position! I'm at 10.05k $KTH and I'm definitely looking forward to the staking. 😁

$ 0.00
1 month ago

I am not really an airdrop hunter. I've even heard of the CATS airdrop, but I was too lazy to find out more. But 1M CATS is almost 3.5 BCH. That's quite a lot. Maybe I need to get over my laziness. πŸ˜„

$ 0.00
1 month ago

Yeah, that was an absolutely insane airdrop. πŸ˜…πŸ™ˆ

I didn't like the steep decline, though. I heard about CATS two days too late and missed already a factor of 100. πŸ™ˆ

$ 0.00
1 month ago

It was a smooth airdrop and well communicated. If this is the indication of how they run their projects, I'm in for the long run. Well done to the KTH team!

$ 0.05
1 month ago

Yeah, definitely. I talked to the lead developer Fernando a day before the airdrop and he is a super nice and approachable guy. From what I gathered he is also super competent - but I'm not a developer myself and haven't looked at the code. But he definitely gave me the impression that the future of Bitcoin Cash is in good hands if the other devs are similar to him.

$ 0.05
1 month ago

I'm very glad to hear this. I'm loving Bitcoin Cash more and more by the day. I've missed too many airdrops already. But with the recent happenings in SmartBCH, I'm hanging on as much as I can for the ride of a life time.

$ 0.00
1 month ago

Haha, me too! It seems that the first airdrops were absolutely insane being worth several thousand Dollars after two weeks. 🀯

I don't expect such craziness anymore, but it's definitely nice to get some free crypto to hodl or stake. 😁

$ 0.00
1 month ago