What is an airdrop in crypto?
Crypto airdrops have been a good way for groups to connect with their followers for a long time. When crypto tokens or coins are airdropped, they are sent directly to users’ digital banks.
Airdrops give fans a prize and try to get new supporters by giving them a free taste of how valuable the project could be.
The idea got a lot of attention in 2014 when Icelandic people were given Auroracoin (AUR), which was called “Iceland’s Bitcoin.”
Since then, there have been several well-known airdrops. For example, Stellar Lumens (XLM) gave away two billion XLM, which was worth over $120 million at the time, to users of different crypto wallets in 2019.
The biggest one so far was by Uniswap (UNI) in September 2020, when they gave out UNI tokens worth a peak of $6.43 billion.
With an airdrop of $3.54 billion worth of APE coins in March 2022, ApeCoin (APE) did another well-known cryptocurrency event.
It can be tempting to take part in airdrops because you could win a lot of money. However, the draw of free coins can sometimes hide the risks, such as scams and possible legal consequences.
Let’s learn more about what a crypto airdrop is.
How crypto airdrops work
There is a marketing technique called “airdrop” that blockchain and cryptocurrency projects use to give away free tokens to a lot of wallet addresses. Think of it as a way for these projects to get more people to use them, get new users, and thank people who are already using them.
Usually, a project will release an airdrop and list the requirements for taking part. These could include having a certain number of their tokens, being a part of their group, or just signing up for their platform.
As soon as the requirements are met, users get free tokens sent straight to their wallets. The amount and value of airdrops can range from a few dollars worth of tokens to a lot of money.
How do airdrops for crypto work?
To begin, it’s important to understand that crypto airdrops work on blockchain. When a project chooses to do an airdrop, it generally sets aside a certain number of tokens to give away. Usually, the following steps are needed for a crypto airdrop to work:
Announcement: The project tells people about the airdrop in several ways, including on their main website, on social media, and in groups. They spell out the requirements for involvement and how to meet them.
Registration: People who want to take part in an airdrop usually have to give their wallet address and do any other jobs that are asked of them, like joining a Telegram group or tracking the scheme on social media.
Verification: Once a person has joined, the project checks to see if they meet the requirements. This step makes sure that the airdropped keys only go to real people.
Distribution: The project sends the free tokens straight to the wallets of people who are qualified after they have been verified. Smart contracts on the blockchain are often used to automate this process.
Token claims: After that, participants can use their crypto wallets to claim and use the airdropped coins. You can buy these tokens, sell them on exchanges, or use them in the project that issued them.
Some types of crypto airdrops
A lot of crypto airdrops look like these:
Standard airdrops: the simplest type of airdrop, where tokens are given away for free to people who meet certain conditions set by the project.
Holder airdrops: Tokens are given to people who already own a certain cryptocurrency in a holder airdrop. As an example, a project could decide to “airdrop” Ethereum or Bitcoin tokens to all Bitcoin or Ethereum users at a certain block height or snapshot date.
When a blockchain project goes through a fork, which creates a new cryptocurrency, fork airdrops happen. People who own the original cryptocurrency often get an equal amount of the new cryptocurrency “airdropped” to them. One time this happened was when Bitcoin Cash (BCH) split off from Bitcoin (BTC).
Bounty airdrops: People who take part in bounty airdrops are rewarded for doing certain jobs or helping the project in different ways. Tasks could include bug rewards, making material, or getting involved in the community. As a prize for their work, participants get coins.
Surprise airdrops: As the name suggests, surprise airdrops are when tokens are sent to a random list of wallet addresses without warning. Most of the time, these “airdrops” are used to thank loyal users or get people excited about the community.
How to find free crypto?
It doesn’t have to be hard to find a crypto airdrop. Start by looking at websites and apps like Dapp Radar and Airdrop alert that keep track of and list current and planned airdrops. Some types of crypto airdrops
A lot of crypto airdrops look like these:
Standard airdrops: the simplest type of airdrop, where tokens are given away for free to people who meet certain conditions set by the project.
Holder airdrops: Tokens are given to people who already own a certain cryptocurrency in a holder airdrop. As an example, a project could decide to “airdrop” Ethereum or Bitcoin tokens to all Bitcoin or Ethereum users at a certain block height or snapshot date.
When a blockchain project goes through a fork, which creates a new cryptocurrency, fork airdrops happen. People who own the original cryptocurrency often get an equal amount of the new cryptocurrency “airdropped” to them. One time this happened was when Bitcoin Cash (BCH) split off from Bitcoin (BTC).
Bounty airdrops: People who take part in bounty airdrops are rewarded for doing certain jobs or helping the project in different ways. Tasks could include bug rewards, making material, or getting involved in the community. As a prize for their work, participants get coins.
Surprise airdrops: As the name suggests, surprise airdrops are when tokens are sent to a random list of wallet addresses without warning. Most of the time, these “airdrops” are used to thank loyal users or get people excited about the community.
How to find free crypto?
It doesn’t have to be hard to find a crypto airdrop. Start by looking at websites and apps like DappRadar and Airdropalert that keep track of and list current and planned airdrops.
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