If you’re not familiar with the LoMoStar app let me be the first to tell you: You’re missing out on free money… a pretty decent amount of it.
LoMoStar is a lot of things. It’s an LBS blockchain/cryptocurrency platform, borderless no-fee crypto transfers, social media, a multi-wallet, an airdrop platform for any coin/token and it’s soon to be an OTC trading platform for any coin in the app. For a good understanding of the overall LoMo vision check out this article.
For this post I just want to focus on the airdrops though. Take away every other feature of the app, let’s pretend its only purpose is airdrops. Still you’ve got a pretty incredible app that’s financially rewarding for users, airdrop projects and LoMoStar alike. It heftily incentivizes all parties, and this is why I think very soon LoMoStar will reach the “tipping point.” One day you’ll wake up and everybody you know is on the app. I’m talking crypto traders and pro’s, crypto noobs, your mom and dad, your kids, your mailman, fuders, fomoers… everybody.
The LoMoStar airdrop is a different kind of airdrop than you might be used to. Most airdrops these days require you to hold a certain coin or token to receive the drop. Some even require you to hold a certain amount of said coin/token. Other airdrops are more like bounties, where you have to complete tasks promoting the coin to get the drop. Still others want your email address, phone number, and your permission to let them spam you with crypto-junk.
LoMoStar requires nothing but downloading the app and going through a registration process that you’ll probably complete in under a minute. Then during an airdrop in the “World View” you’ll open “Red Envelopes” (a Chinese gifting tradition) that contain cryptocurrency. There’s more to the World View, there are actually envelopes users post there even when there’s not an airdrop, but the airdrop part is literally that simple:
The coins are immediately deposited into your app wallet. The more you use the app and the more envelopes you open the more crypto you can potentially accumulate. Here’s an example of what you’ll see in World View when you select and open an envelope.
So that’s a LoMo airdrop. Like everybody in crypto LoMo has a referral system. As annoying as referral links and codes are and as tired as we are of being spammed with them, the reality is they’re a big part of adoption and one of the reasons total crypto market cap continues to grow year after year. Referrals give platform users/coin holders incentive to recruit new users/coin-holders. While in many cases referral links only benefit the referrer, in the case of the LoMoStar app both the referrer and the referral benefit. LoMo regularly runs promotions to reward invites, for instance right now when a new user signs up and uses an invitation code both parties get a 100 ALI token bonus.
Now you want to really accumulate some coins? Every Red Envelope that’s opened in World View by default gives 10% back to the system. Think of it as kind of a transaction fee except that it’s 10% of something that wasn’t really yours in the first place, something you’re just being given, for free. If I gave you an envelope with $1 USD in it and you opened it to find only $0.90 would you be upset? Probably not too upset. Then what if I handed you another one and another one and I just kept handing them to you. Next thing you know you’re standing there in a pile of empty envelopes and every pocket you have is stuffed full of quarters. You mad bro? Doubt it.
The reason it was designed this way is actually to encourage users to get their friends to register. When you refer someone, and they use your invitation code, that 10% of World View envelopes goes to you instead of back to LoMo. So you’re not taking anything from the friend you referred, you’re being given a reward, in perpetuity, by LoMoStar. Now you have passive crypto income whether you use the app yourself or not.
So now you’re standing there in that pile of envelopes torn-open, pockets and socks hemorrhaging coins and now I’m giving you my 10% cut of all these other people’s envelopes. It's a weird hypothetical, sure, but you’re definitely not mad at me. We’re cool.
Now I’m by no stretch of the imagination a social media genius. I don’t have a YouTube channel, I don’t use Instagram and I don’t have any more friends than you do. This is the first blog or article I’ve ever written in my life, on any subject. I currently have 584 Twitter followers and only had about half that when I started trying to get my referral code out there. The only thing I’ve done besides tweet my invitation code and tell my friends, family and coworkers is I’ve posted on InvestFeed, where I have a whopping 5 followers.
But as of writing this I have 116 referrals. It’s honestly kind of an easy sell, LoMoStar.
The first airdrop on the app was CFun on 13 December 2017. Since then there’s been MassGrid, DCON, AiLink, RuffChain, and RED. Not all of these are on CoinMarketCap yet so they don’t all have a USD value in the screenshot, but you’ll see where I got their values in the chart below. Here’s what I’ve accumulated so far and also an example of my referral bonuses in a 24-hour period (it took 16 screenshots to capture 24 hours of referral bonuses, so I’ll post a screenshot of the 16 screenshots).
So how much are all these coins really worth? As I mentioned, some of them aren’t yet on CMC because two just recently finished their ICO and aren’t listed on an exchange yet (ALI & RED), and two others (MGD & DCON) are also new and so far only trade on Xstar.io, which CMC hasn’t yet integrated. For these we can use ICO price and Xstar price, respectively.
$561.75 in crypto. For free. No catch. And that’s $561.75 at essentially ICO price. You think there’s a chance that $561.75 might be worth a little more than that in a couple months? A year? Sure there is... Pretty good chance. Regarding ICO returns, two weeks ago Business Insider reported:
"On average, tokens have returned 12.8x the initial investment in dollar terms versus 7.7x for ETH and 4.9x for BTC during 2017"
Just from what I can tell, doing my own research, these coins/tokens seem to be very solid projects. To be fair four of the six are already on an exchange, even if they haven’t been for very long. It’s likely they’ve already made some gains from ICO price. Without doing a whole lot of extra research and math, let’s just be very conservative and say from this point forward my airdrop coins will only do one-fourth as well as the average ICO, or 3.2x in the next year.
At 3.2x, one-fourth the rate of return on the average ICO, in a year my $561.75 will be $1797.60
At 6.4x, half the rate of return on the average ICO, in a year my $561.75 will be $3595.20
Now we’re talking about a serious amount of money, I don’t care who you are. There’s a chance, of course, that all these coins go to $0 in the next year, anything could happen. If I know anything about crypto it’s that you just never really know. But like I said, after doing some research I’d be shocked if that happened. Worst case scenario, if it did I’d lose my entire initial investment… of $0.00. Ok, but I’ll also be accumulating more new coins all the time from LoMoStar. Odds are some of the coins will just do ok, some will do well, and a few might do really, really well. There have already been six different coins airdropped in the first two months and the frequency of airdrops seems to be increasing. There were three drops simultaneously 9 Feb – 13 Feb (ALI, RUFF & RED). As I’m about to post this I see LoMoStar just tweeted that there’s another airdrop starting in two days.
It seems a little too good to be true, hu? As I wrote this and put the numbers together I thought the same thing. It’s a lot of money potentially for free, for doing almost nothing. I’ve always subscribed to the idea that if it’s too good to be true it’s probably not true. I touched on it earlier but what you have to remember is that nobody’s really losing on this deal. That’s the beauty of what LoMo has created and why I think at any moment it’s going to tip. You have three parties:
LoMoStar - I don’t know all the ways LoMo makes their money off the app but I know that they do. I don’t want this to turn into an app tutorial but I know users can buy more vitality to open more envelopes, things like that. The app is free and you don’t have to spend a penny to get the airdrops, but you can make in-app purchases if you determine it’s worth it. They’ll also bring in revenue when businesses start utilizing the LBS marketing feature in the near future. This is one of the most brilliant features of the app in my opinion and should be very profitable for LoMo.
Airdrops – As philanthropic as it seems for these projects to just give us all these coins/tokens, of course it benefits them too. Typically when people get free tokens they quickly become fans or advocates of the project. They have a stake now, skin in the game. It’s in their interest to promote the project and increase the value of the coin, and some will. Some of them will join the project’s community, tell their friends to buy some, you get the idea. As we move forward in the crypto space one thing is certain, there will be more regulation, especially of ICO’s. Airdropping your tokens instead of holding an ICO certainly seems like the path of least resistance. I’d be surprised if crypto as a whole doesn’t move in this direction, away from ICO’s in favor of airdrop launches.
Users – I think I’ve made the benefits to users fairly clear, at least what I think they are. Free money. If you like that kind of thing.
If some guy with 584 Twitter followers can make $561.75 in the first two months just by opening the app a few times a day, opening envelopes and tweeting my referral code, imagine how much money people will make with this thing. Imagine you’re somebody who has 1k Twitter followers… A big facebook group… A YouTube channel… What if you have tens of thousands of Twitter followers? There’s some serious money to be made here folks, by everybody.
If you found this article interesting or useful please upvote it and use my invitation code when you register on the LoMoStar app, it’s:
15FTJ3
*100 ALI Referral Bonus lasts until 24 February
iPhone download: http://ilanding.lomocoin.com:3000/landing/
Android download: https://play.google.com/store/apps/details?id=com.lomocoin.lomocoin
Disclaimer:
I’m not an investment advisor and I don’t provide investment advice. I have a personal portfolio of cryptocurrencies that I manage myself. I’ve invested $0.00 of my own money in the airdropped currencies in this article and at the time of writing I hold the amounts stated, which I’ve gotten for free on the LoMoStar app.
Keepin’ it Real:
I volunteered for LoMoStar for about three months, doing various work uncompensated because I’m a big believer in the app and its disruptive potential to change the world socio-economically. After about three months of hard work I was hired part-time by LoMo to work in International Marketing. However, I wrote this article on my own personal time and was not compensated by LoMoStar or anyone else for it. Everything in the article is true and is my story. Aside from working part-time for the coolest blockchain company there is, I work a full-time job and I’m a single dad in Atlanta GA. You can follow me on twitter @LMCjohngalt.
References:
¹MGD & DCON price from Xstar.io. Both in ETH trading pair so used current CMC ETH price of $841.46 as of writing to calculate USD value
²ALI was sold at ICO price of 0.10 RMB, or $ 0.0157693 USD
³RED sold at ETH equivalent of $0.42 at beginning of open ICO round 16 Jan 2018 (1 ETH = 2500 RED x $1053.69 closing ETH price 16 Jan)
-Cfun price from CoinMarketCap
-RUFF price from CoinMarketCap