Traditionally, airdrops are a marketing strategy used by cryptocurrency projects to encourage users to use their platform. New projects may airdrop cryptocurrency into your wallet as part of an initial coin offering or as a reward for promoting the brand.
What Is A Crypto Airdrop And How Does It Work
A cryptocurrency airdrop is a marketing strategy in which coins or tokens are sent to wallet addresses. Small amounts of the new virtual currency are sent to the wallets of active blockchain community members for free or in exchange for a minor service, such as retweeting a post sent by the company issuing the currency. A crypto airdrop's ultimate goal is to raise awareness and circulate a new token or coin.
Generally, airdrops are promoted on the company's website, social media, and cryptocurrency forums. Only coins or tokens held in existing wallets or specific wallets based on the blockchain network are sent coins or tokens.
To be eligible for the gift, a recipient may need to have a certain number of crypto coins in their wallet. Alternatively, they may be required to complete a specific task, such as discussing the currency on a social media forum, connecting with a specific member of the blockchain project, or writing a blog post.
Hundreds of airdrops have occurred, including airdrops from leading crypto projects. As a result, there are numerous examples of crypto airdrops. Airdrops have been happening in the crypto world for years. In 2014, the first airdrop took place. During an airdrop, a cryptocurrency project distributed 50% of all tokens.
Auroracoin, a cryptocurrency project, has its token, AUR. The project intended to make AUR the Icelandic national cryptocurrency. As a result, the entire AUR airdrop went to Icelandic citizens, who could receive up to 31.8 AUR per person.
Many airdrops followed the Auroracoin airdrop in the years that followed, including those of slightly more well-known cryptocurrencies. For example, Stellar Lumens (XLM) and Bitcoin Cash (BCH) organized cryptocurrency airdrops in 2016 and 2017, respectively, distributing airdrop coins to Bitcoin owners. At its peak, Bitcoin Cash distributed one Bitcoin Cash token for every Bitcoin, which was worth thousands of dollars.
UniSwap's airdrop, in which the governance token UNI was distributed to users of the decentralized exchange (DEX) in 2020, is another well-known crypto airdrop. Over 250,000 accounts received 400 UNI per account, amounting to thousands of dollars per person! This is a very profitable airdrop if you can sell your UNI tokens quickly.
Types Of Crypto Airdrops
There are several types of airdrops, each with its characteristics. Crypto projects frequently view airdrops as a marketing tool through which they attempt to grow as a project. For example, projects may want to increase brand awareness and attract new users, or they may want to reward their early adopters.
The motivation behind a cryptocurrency project is, of course, related to the type of airdrop. Several types of crypto airdrops are widely used, including:
Participants interested in receiving an airdrop simply express their interest in receiving it in a standard crypto airdrop. Individuals must provide a valid wallet address, and some airdrops do not require additional information.
Standard airdrops frequently have a predetermined number of tokens to distribute, with a cap on how many each individual may receive. As a result, some standard airdrops are time-critical. Though these types of airdrops are popular for their ease of use, nothing stops a single user from creating multiple wallets to drain the airdrop amount quickly, so these may be more difficult to obtain.
Bounty crypto airdrops occur when users complete specific tasks. These tasks frequently involve increasing project awareness by posting on social media and tagging the company or retweeting a recent tweet about the project. Referral bonuses or finder's fees may also be offered to individuals who recruit new users, sign up for the project's newsletter, or join the company's Discord channel.
Users frequently receive points in exchange for completing tasks corresponding to the size of the bounty airdrop they receive. Users may also be required to earn certain points before being eligible for an airdrop. For example, a user may be eligible for an airdrop after accumulating 300 points, with each item listed above worth 100 points.
Holder crypto airdrops happen automatically based on who owns existing tokens and how many they own. Furthermore, because wallets and blockchain information are part of a publicly distributed ledger, all blockchain users have complete transparency into wallets and token distribution.
The disadvantage of holder airdrops is that individuals who hold tokens may not want an airdrop. Holder airdrops, on the other hand, ensure that only the largest, most invested individuals benefit. Some holder airdrops may only award an airdrop if members hold a certain number of tokens; otherwise, the award amount may be pro-rated.
An exclusive crypto airdrop is a more specific type of holder airdrop that occurs when specific people are individually selected for the airdrop. The difference is that they may be chosen not based on the number of tokens they have but on other factors such as time spent on a project, most money spent on the non-token activity, or the number of forum posts. An exclusive airdrop is a more centralized method of rewarding those closest to the project and may provide airdrops to wallets that do not hold any tokens.
Some of the types mentioned above airdrops may be combined with a raffle airdrop. A project will frequently state the number of airdrops it intends to provide and encourage people to earn raffle tickets. This ticket can be obtained by holding tokens, accumulating points, or expressing interest.
Finally, the number of people interested in the airdrop frequently exceeds the number of airdrops the company wishes to deliver. As a result, a raffle is held, and a limited number of wallets are chosen randomly to receive the airdrop.
Are Crypto Airdrops Safe?
Many crypto airdrops appear harmless and secure, but this is not always the case. Scammers have also discovered ways to defraud people via airdrops. In addition, they have devised methods to harm crypto enthusiasts by stealing cryptocurrencies or private keys.
Keep an eye out for airdrops, especially when large sums that seem too good to be true are promised. It is critical to remember that connecting your crypto wallet to an untrustworthy party or handing over your private keys is never a good idea.
Scammers have even deposited cryptocurrencies in fraudulent airdrop actions. These tokens were discovered to be counterfeit and, therefore, unsellable. To avoid becoming a victim of a scam, it can be beneficial to research the team behind the crypto project and learn what others think.
Why Do Airdrops Exist?
The primary goal of a crypto airdrop is to promote a blockchain startup, project, or service. The team can bootstrap its project and ensure a fair distribution of tokens among its community from day one by issuing tokens to users. Furthermore, once the token begins trading on an exchange, recipients are incentivized to raise awareness and help the project reach a wider audience. The greater the interest in the token, the more likely it will rise in value.
Airdrops are frequently promoted on a project's website, cryptocurrency forums, and social media. This is similar to receiving a HelloFresh voucher with a discount code in your email. Those campaigns are designed to bring more people to the platform by offering a financial incentive.
Legitimate crypto airdrops will never require users to invest anything. Instead, it distinguishes itself from competitors seeking external funding before issuing its tokens.
How To Get A Crypto Airdrop With Margex (Short Step-By-Step Guide)
Crypto airdrops are frequently communicated and marketed by crypto platforms to the general public to generate excitement and awareness about a token. Subscribing to airdrop newsletters or following blockchain networks on social media can help you find many of these airdrops.
On Margrex, you can access a lot of free crypto airdrops.
Here are four simple steps to getting access to an Airdrop (AirUSD):
- Register at margex.com.
Fill out the needed information on the Sign-up page. "Register" is the only option. You'll get an email to confirm your registration. To finish account registration, open this email and click on the confirmation link.
- First, go to the Margex cryptocurrency wallet page.
- Then, in the promo code field, enter WLCM100.
- That's all! The $100 Airdrop (AirUSD) is now active, and you can begin trading immediately.
Is crypto airdrop real?
Crypto airdrops exist. Given the fierce competition among cryptocurrency startups, an airdrop is an attempt to distinguish oneself. Some crypto airdrop businesses provide user alerts, startup listing services, and marketing services to help them fine-tune their airdrops. There are good and scam airdrops.
Can airdrops hack your wallet?
Receiving an airdrop may be advantageous to you; however, you should be cautious about the security of the smart contracts you interact with when claiming an airdrop. To claim an airdrop, you must link your wallet to a smart contract and sign a transaction. This process can expose your wallet to hacks if the smart contract is built with malicious intent.
Can you get a good profit from an airdrop?
Airdrops are a great way for crypto wallet holders or those holding specific crypto tokens to make good profits on what is essentially a zero investment. In addition, they can be a great way to generate passive income in the crypto markets. All that is required is to keep an eye out for projects or businesses planning to offer airdrops and take advantage of them.
Thus, you can profit from crypto airdrops by immediately selling the received tokens on a crypto exchange. You can also hold them for extended periods, potentially increasing your chances of generating even higher returns.
Are airdrops free money?
A crypto airdrop is an excellent way to obtain digital currency without purchasing it. Learn more about the advantages and disadvantages, the various types, the websites that feature the most recent airdrops, and how some can make you money.