Airdrop is a campaign among cryptocurrency holders, which involves sending free tokens to promote a blockchain project.
Some actions can be required in exchange for airdrops: like following the project on social networks, buying a certain coin, or using some decentralized application.
Airdrop Purposes
The main purpose of an airdrop is to advertise a cryptocurrency project. Besides marketing purposes, new crypto projects just entering the market can use airdrops to:
- Distribute governance tokens. In addition to their monetary value, governance tokens provide the right to vote and influence decisions that affect the blockchain project. The weight carried by a token holder's vote is proportionate to the number of tokens they hold.
- Launch a blockchain system. Sometimes crypto airdrops are performed to get a project up and running. Having certain tokens in the user's cryptocurrency wallet provokes the user to make certain transactions with them, which, in turn, helps launching the project faster.
Quite often, new crypto projects use popular cryptocurrency platforms to perform airdrops: for example, crypto exchange Coinbase or CoinMarketCap.
Today, most new projects distribute their tokens following certain rules. For example, the first users of a crypto exchange can get its governance tokens for free.
Airdrop Types
Each cryptocurrency project is unique and has its own requirements for airdrop, but still airdrops can be divided into several common types.
- Standart or Bounty Airdrop. Free crypto is sent in return for actions. Such actions involve sending a message, registering on the platform, publishing a post in social networks, joining a group, etc. Each such action has its own price. The participant must also send a proof that the service is rendered. Then, an agreed amount of tokens is credited to the wallet.
- For users or exclusive. In this case, tokens are distributed to those who use a certain app. Such airdrops are most popular in the DeFi. For example, the developers of some blockchain platforms distribute their governance tokens among users who have registered or performed specific actions. In this way, the organizers of a crypto project reward their community.
- For cryptocurrency holders and investors. Here, users who already have coins from a particular crypto project are credited with new ones for free. For example, a new project that launches on Ethereum sends its tokens to ETH holders.
How to participate in airdrop
In order to take part in airdrop and get cryptocurrency for free, you need to:
- Have a cryptocurrency wallet. The best option is a cold wallet like Tangem Wallet, an exchange account is not always suitable for such purposes.
- Find an aggregator platform or community in social networks, where airdrops are announced and choose the appropriate one.
- Perform actions to have crypto rewards.
Some startups advertise the airdrop and inform in advance about the conditions of participation.
Other blockchain projects announce airdrops unexpectedly, so that the rewards go to a small group of loyal users and not to money seekers.
In any case, you need to know where to find airdrops.
Where to find airdrops
Nowadays, there are enough resources to learn about current and upcoming airdrops. Many have calendars of past, current and future airdrops. The most popular ones are:
- CoinMarketCap, Airdrops.io, 99airdrops. com, TokenDrops, AlertAirdrop, Coin Airdrop, Airdrop Addict;
- Twitter channels: Airdrop, DeFi Airdrops, Cosmos Airdrops;
- Cryptocurrency forum: BitcoinTalk.
The Risks of Participating in Airdrop
Inexperienced investors consider airdrops to be a quick and easy way to get coins or tokens for free. But airdrops involve certain risks.
To avoid phishing and scam risks:
- Do not reveal your private key/seed phrase under any circumstances.
- Carefully study each crypto project you want to participate in. Use only verified sources of information. If you can not find information about a startup, the risks of falling for scammers increase.
- Never provide personal information or login information to your accounts.
- If you are asked to transfer a small amount of coins in return for a large amount, it is definitely scammers.
Be careful, and good luck with airdrops.