Abra, a digital asset exchange and wallet provider, is giving away $25 in bitcoin (BTC) to those who sign up to purchase its BIT10 “exchange traded fund” token.
However, the fine print, or the terms and conditions for the offer specify that “any investments in BIT10 totaling less than $1,000 equivalent during the promotion period will not be eligible for this cashback reward.” So, to qualify for the free BTC, users must purchase at least $1,000 of the BIT10 token, before the end of this year.
BIT10 Token Tracks Top 10 Cryptos
This may not be such a good deal because the BIT10 token can only be used on the Abra platform. Moreover, BIT10 is a market tracking index token that is managed by Bitwise Asset Management. The token tracks the top 10 digital currencies every month, and if the market capitalization of these top digital assets increases or decreases, then so does the value of BIT10.
Although the developers of Abra’s BIT10 token claim the company’s native asset has “historically outperformed the price of bitcoin alone”, digital currency prices continue to fall sharply. As CryptoGlobe reported on December 14, the price of bitcoin (BTC), the flagship cryptocurrency, fell to a 15-month low. This, as the market cap of the volatile digital asset market may drop below the $100 billion mark.
Considering the market cap of all cryptocurrencies was well over $800 billion about a year ago, when digital currency prices reached their all-time highs, investing $1000 in Abra’s BIT10 token at this point just to get $25 in bitcoin may not be a wise idea.
Abra's Crypto Giveaway Isn't The First Major One
As CryptoGlobe covered in early November, Blockchain.com, the developer of the Blockchain wallet and block explorer service, introduced an offer which it referred to as “the largest airdrop in the history of crypto.”
Blockchain.com’s offer involves distributing $125 million worth of Stellar (XLM) tokens to all Blockchain wallet users, with each account receiving $25 in XLM. In order to receive the free XLM, users must go through identity verification (KYC) checks. The company explained that part of the reason for doing identify checks was to make sure duplicate accounts could not claim XLM as it should be a fair distribution of the cryptocurrency.
Notably, cryptocurrency adoption appears to be growing despite the slump in cryptoasset prices. Ran NeuNer, the host of CNBC’s Crypto Trader show, informed his followers recently via Twitter that there have been over 2 million Blockchain.com wallets that have been created since September.
The drop in prices hasn’t deterred new users from entering the market. 2m new BTC wallets since September, many of the institutional. Don’t let the prices distract you. pic.twitter.com/6lVRJoEgM6— Ran NeuNer (@cryptomanran) December 10, 2018