You might have heard about the term Airdrop? But what is a crypto airdrop? It is a marketing method used by crypto companies to advertise their projects and tokens. It involves the distribution of their native cryptocurrency to users without them buying it.
But as the saying goes, there are no free lunches, so to get Airdrops, users have to perform a few promotional tasks before hitting the claim button, or the tokens get deposited in the user’s wallet. The tasks may involve tweeting about the project, retweeting a company’s post, following their social media handles, tagging friends, etc.
What is a crypto-airdrop?
A crypto airdrop transfers assets digitally from one cryptocurrency project to several wallets. The goal is to distribute tokens or coins to current or potential users to boost the project’s perception, similar to giveaways done by Youtubers to gain subscribers. Most of the time, crypto airdrops are in the form of native coins, ether or USDT. While less frequent, however, some projects give away NFTs instead of the regular cryptocurrency.
Also, with the constant increase in new coins being released, it’s hard for investors and traders in the crypto space to keep on top of the new projects. Therefore, some crypto projects provide airdrops to help to make themselves stand out and raise awareness. However, although everyone is in love with free crypto, airdrops aren’t always authentic (We will talk about it later in the write up).
Usually, the objective of Crypto Airdrops remains the same for all the companies – create buzz and awareness.
In addition, many blockchain-related projects offer tokens for free to increase their adoption and reach. But the differentiation kicks in the kind of Airdrops employed.
Types of Airdrops
Apart from the typical Airdrop, which simply transfers cryptocurrency to multiple wallets, there are several other types as well.
Bounty Airdrops
The bounty airdrop will require users to perform certain tasks, for example, posting a tweet about the campaign on Twitter or joining the official Telegram or writing the post and sharing project on Instagram. In order to claim the bounty airdrop, it’s likely that you’ll be required to fill in the form that includes your wallet’s address and shows evidence that you have accomplished the task.
Exclusive airdrop
The Airdrop is exclusive and only transfers crypto to specific wallets. Most often, recipients have a history of involvement with the program or project, for example, being active in the community or a first-time supporter of the initiative.
Holder airdrop
Holder airdrops give free tokens to users holding a certain amount of digital currency ( tokens) in their wallets. The team behind the project usually captures a snapshot of their crypto accounts on a specified date and at a specific time. If the balance in the wallet is at the minimum requirements, users can receive tokens for free in accordance with their current holdings at the date and time that the image was taken.
Fraud Airdrops
It isn’t always easy to discern whether an airdrop is legitimate or a fraud. Always DYOR ( Do Your Own Research) before joining any airdrop, especially if you have to connect your bank account to an online site.
In some instances, scammers may advertise fake airdrops that lead to a fake website. They’ll fool you into connecting your wallet to a web page that is exactly like the one you were on. When you connect your wallet and complete an order, scammers may access your other token and run away with them.
Do keep in mind, true airdrops do not ask for money or seed phrases. So be cautious with airdrop email messages as well as direct mailers.
To ensure you are fraud-free, investigate the official website as well as the social channels. Save the official links and confirm whether they’re really running an airdrop. If you’re not aware of anything concerning the company, investigate further to learn what the crypto community says about it. If you’re unable to find sufficient details, it’s probably best to ignore the Airdrop altogether.
To ensure your security, you can create an entirely new wallet and a brand new email address specifically for receiving airdrops exclusively. This can help ensure that the funds stored in your personal wallet are secure from attempts to phish you for airdrops. Most importantly, do not give your private keys to anyone.
Closing thoughts..
Airdrops in crypto allow crypto projects to be noticed and gain popularity in the crypto world. They can also be an excellent method for people interested in crypto to expand their portfolios by investing in emerging tokens. But, there are more fraudulent airdrops than legitimate ones. Be cautious and ensure you conduct your own research before taking part. Happy scouting!