Crypto airdrop is a popular way of increasing awareness regarding a crypto project by freely distributing tokens among the public. Receiving airdrops is the best way to get into a project at an early stage. You can make huge sums of profit if the project takes off later on.
Crypto airdrops are common on social media platforms. Oftentimes users are asked to share the coin project on their timeline and in exchange, they receive tokens for free. Airdrops can also happen in the wallet. However, you need to be very careful while connecting your wallet to a site that claims to give airdrops.
Airdrops are a great marketing strategy for grabbing the interest of potential investors. There are hundreds of coins launching every year. Thus the competition is tough. Airdrops can help a project stand out and spread awareness about it.
What is a Crypto Airdrop in 2022?
Crypto airdrops rose to popularity in 2017 with Initial Coin Offerings (ICOs). Investors received free digital tokens in their wallets after participating in ICOs. Airdrops are different from ICOs. In an ICOs participants have to fund the project in crowdfunding style. Airdrop, on the other hand, are free for everyone.
In 2022, the airdrops are still considered a good marketing strategy. Users can receive tokens either for free or claim them with small actions like sharing projects on their profiles.
The main purpose of Crypto airdrops is to raise awareness. Potential customers learn that there is a new token on the market. Later on, the coin is listed on the exchanges from where traders can buy it and trade against different pairs.
How do Crypto Airdrops Work?
The crypto project creators specify a certain amount of tokens for airdrops. These tokens are automatically sent to digital wallets on Ethereum and Binance Smart Chain. The wallet holders become eligible for airdrops via interaction with the project platforms on the internet. At times, crypto airdrops ask wallet owners to attach their decentralized wallets with the website for receiving tokens.
Also Read: How to Create Your Own Deflationary Token
Tokens are distributed freely, however, sometimes there are certain requirements to claim airdrops. For example, they will as you to subscribe to their newsletter, follow on social media, or hold some coins in your wallet.
Airdrops are common for crypto tokens but a few platforms also hold airdrops for NFTs. Early adopters of coins have an edge over those who purchase from the exchange after listing.
Importance of Crypto Airdrops:
As mentioned earlier, Airdrops are a cool marketing strategy. It spreads awareness regarding the coin. Here are some other benefits of crypto airdrops for token creators:
- The token is considered truly decentralized when a large audience is holding it in their wallets.
- Token holders will encourage others to buy the tokens. This will create a snowball effect and the price of your token will increase in the long run.
- The audience base for the coin network starts to grow with airdrops.
- Periodic airdrops will motivate people to participate and receive your tokens.
- Once someone has signed up on your website for receiving airdrops, they can be a potential customer for your next projects as well.
Types of Airdrops:
The cryptocurrency platforms have the leverage of conducting airdrops via different methods. These include Bounty Airdrops, Exclusive Airdrops, and Holder Airdrops.
Bounty Airdrops are claimed after performing a few simple tasks like sharing the project on your social accounts, tagging your friends, or joining the telegram group of the project. Crypto platforms require you to confirm that you have done all the tasks. Lastly, send them your public wallet address and receive the bounty.
Cryptocurrency platforms also conduct another type of Airdrop in which free tokens are sent to selected wallets. These wallets are picked up based on the currency they are holding. If the number of coins matches the requirement then the free tokens are sent to the wallet.
Exclusive Airdrops are sent to wallets that interacted with the project’s platform prior to the airdrop launch. These free tokens are exclusive for community members or other loyal crypto owners.
How Do I know if Airdrops are Legit or not?
People often wonder, how do I know if a crypto airdrop is legit? Here is a checklist of things you need to do for participating in a legit airdrop:
- Create a wallet account exclusively dedicated to receiving airdrops. Do not add your other digital assets into this wallet.
- Do your own research. Go through the platform’s official website and social media channels and see if they really are conducting airdrops.
- In order to avoid getting scammed from impostor websites, bookmark the official website of the project platform.
- Go to crypto community forums and see what the community says about the particular airdrop.
- If you do not find any relevant information regarding the airdrop or the project attached then it’s better to ignore it.
Crypto Airdrops help a new project gain an audience pre-launch. Recipients of free tokens can get lucky if the project becomes popular later on. However, there are a plethora of scam airdrops in the market. Therefore, do your own research for staying safe while receiving airdrops.