Crypto Airdrop: What is it and Why is Everyone Looking For Crypto Airdrops?

Crypto Airdrop

A crypto airdrop is a promotional scheme employed to raise awareness about a particular coin. The airdrop is a marketing strategy aimed at getting users to perform a specific activity in exchange for currencies sent to the users’ wallets. The activities could include writing a blog post, tweeting about the currency on a crypto forum, or engaging the content created by others.

Every crypto airdrop provides crypto founders an opportunity to learn something about their currency — from the marketability of the currency to the ease of mining and cashing out free tokens.

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How Do Crypto Airdrops Work?

Why would anyone want to give out crypto coins for free? Except if it’s a technique to gather users’ details and get these users to spread awareness about a new product or project on different cryptocurrency forums and communities. The coins are sent to selected wallets on the network’s database, or to wallets holding a minimum required token over a defined period.

Creators put up the new project to be launched on their website, social media, or dedicated forum prior to the project’s listing as an initial coin offering. When airdrops are released into wallets, they create a buzz that pulls traction for the project or product.

Distributing airdrop could happen in any of these ways:

• Committing users to tasks that earn them crypto.
• Selecting based on merit, such that only users having a stated balance receive the airdrops.
• Creating a capture for selecting eligible users. This is routinely done through a snapshot that shows those that meet up with certain criteria before the release of the airdrop.

Once this is done, the company draws up a smart contract for moving the airdrops into users’ wallets. Given that this is a free coin, users can choose to accept the tokens, adding to their total crypto balance. They may also decide not to accept the airdrops, though this means that the value of the airdrops will not reflect in their balance.

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Types of Airdrops

Crypto airdrops are classified based on the technique of distribution and of selecting merited users. For a standard airdrop, anyone can indicate interest by sharing their wallet addresses. Users can create multiple wallets to receive multiple wallets, which reduces the odds of fair airdrop distribution.

The three main types of crypto airdrops are:

• Bounty Airdrop: A bounty airdrop uses a hunt-and-earn approach. Users are given an outline of tasks; each successful task earns points that correspond to the size of the airdrops they will receive. The nature of the tasks varies, depending on the company’s promotional strategy.

Users may be required to post multiple tweets about the coin’s proposed ICO, share and subscribe to the company’s newsletter, or refer new users to the platform and earn a?referral fee. The more tasks completed, the more points the users earn.?

• Exclusive Airdrop: This is a highly selective type of airdrop. Only users affiliated with the company are credited with coins. For instance, a company may choose to credit users who have contributed to the forums since inception or based on time spent on the network since becoming a member. It doesn’t consider the number of tokens present in the users’ wallets but instead rewards active community participation.

Uniswap, in 2020, distributed tokens to users who had traded using the platform before a certain date. Reportedly, the selected wallets were credited with 400 UNI tokens that have now more than tripled in value.

• Holder Airdrop: A holder airdrop rewards users who hold the highest tokens. The more a user has, the more he is eligible to receive. Can users who merit these airdrops reject them? Certainly. The major drawback to a holder airdrop is that users may not be enthusiastic about the airdrop, and may choose not to partake in the promotional campaign.

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Examples of Airdrops

The Uniswap airdrop is one of a number of airdrops that surprised users and other cryptocurrency enthusiasts. A few others are:

DeFiChain gave out at least 500 tokens to each user who had purchased Bitcoin through the platform prior to the release of the airdrop. The volume of tokens received corresponded to the volume of Bitcoin previously traded.

OpenDAO gave out tokens to all NFT creators, enthusiasts, and collectors who had traded NFTs on the company’s dedicated NFT platform, OpenSea. This was a standard airdrop, as users didn’t have to participate in promotion activities.

Ethereum used an exclusive airdrop approach to distribute Gas DAO to clients who had paid a certain quota of Ethereum’s gas fees. The tokens grant recipients access to contribute to decisions regarding the development of future projects.

London-based crypto platform?Tidex?rewards users for tasks completed. To be eligible, you have to create an account, complete a KYC process, and maintain a $20 minimum balance. The tasks are simple and easy to complete, enabling any user to participate in the airdrop.

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How to Earn a Crypto Airdrop

Airdrop eligibility varies and depends on the type of airdrop being distributed. Consider that a snapshot airdrop is only announced?after?the snapshot has been taken, and participation in this may be more difficult than it looks.

However, there are alternatives. You can:

• Shadow crypto websites and stay up-to-date with news about product releases. Likewise, you can find dedicated airdrop websites and subscribe to their emails, so you don’t miss any scoop.
• Search for social media conversations about airdrops. The simple way to do this? Use the #airdrop.
• Create cryptocurrency accounts with different platforms. You can hardly receive airdrops without owning tokens in your wallet.?
• Be curious. Explore cryptocurrency forums. What conversations are other enthusiasts having??

Everyone loves free stuff, but no one readily gives them. If you find a crypto airdrop, ensure the airdrop is safe before committing to it. Many crypto airdrops turn out to be?phishing scams. These scammers target users’ personal information, such as wallet addresses, to drain wallets and perpetrate other activities.

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