A cryptocurrency airdrop is a free distribution of tokens by a particular blockchain project. ‘Airdrop‘ means dropping cargo (equipment, food) from an airplane or airborne landing. It’s more likely to be involved in the crypto sphere in the first sense: blockchain projects “dump” cargo in the form of their tokens.
Most often, airdrops arrange projects for the sake of PR and brand promotion. Start-ups can thus attract investors, lure potential customers, or simply inform the crypto community about their existence.
How to get free coins via airdrop? What are the most exciting airdrops that happened? Where to get information about the upcoming free cryptocurrency tokens distribution? Stay tuned and explore the world of airdrops with Changelly!
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Airdrop Basics: How Does Crypto Airdrop Work?
Crypto airdrops work by offering free tokens to members of the crypto community who meet certain criteria or perform specific actions. For example, developers can send project coins to those who repost from their official pages on social networks or hold certain cryptocurrencies. In exchange, those who want to receive free cryptocurrency become a means for the instant distribution of information over the network.
Airdrops are very similar to bounty campaigns launched during ICOs. However, the bounties aim at promoting a fundraising event, while the ultimate goal of an airdrop is to advertise a specific coin that is part of a new project, platform, or application.
What are the benefits of crypto airdrop?
The benefits of crypto airdrops include the opportunity to receive free tokens or coins, potentially earning a profit if their value grows in the future. Additionally, airdrops can help raise awareness of new crypto projects and increase their user base.
Are crypto airdrops worth it?
Whether or not crypto airdrops are worth it depends on individual circumstances and the legitimacy of the airdrop. If the airdrop is from a legitimate crypto project and the tokens or coins have potential value in the future, then participating in the airdrop could be worth it. However, it’s important to be cautious of airdrop scams and to thoroughly research the project and airdrop before participating.
Types of Cryptocurrency Airdrop
There are several types of airdrops from which you can benefit. We will explore them below.
Holders of specific cryptocurrencies receive new coins that appear as a result of hard forks. The primary condition here is having a wallet that supports new coins. For example, Bitcoin holders automatically received the Bitcoin Cash cryptocurrency as a result of the hard fork of the Bitcoin network.
Bounty airdrops are a way for crypto projects to reward users for performing specific tasks or completing specific objectives. These tasks can include promoting the project on social media, creating content, or even developing software. Bounty airdrops are a way for projects to build communities and incentivize users’ contributions.
An incentive airdrop is a reward for certain actions that help in the dissemination of information about the project. Such actions may be
- advertising on social networks or the BitcoinTalk forum,
- publishing articles on blogs and news resources,
- making mailing lists, or
- creating groups on social networks.
Holder airdrops require you to have a certain amount of a particular cryptocurrency in your wallet to receive airdropped tokens. For example, those who wanted to get Stellar via airdrop had to confirm that they had a certain amount of Bitcoins. Furthermore, holders of NEO could get the Ontology Token.
Standard airdrops are open to anyone who meets the specified requirements, which could be as simple as joining a Telegram group or following a Twitter account. These airdrops are usually used for promotion and building awareness of a new crypto project. Standard airdrops are great for people who want to try out new crypto projects without having to risk their money.
Exclusive airdrops are given only to select individuals who meet specific criteria. For example, a blockchain project might offer an exclusive airdrop to investors who have supported them from the start.
The Most Famous Airdrops
Airdrops have been around for a very long time, starting with the first cryptocurrencies. When Bitcoin Cash split off the Bitcoin network, then everyone who had their own wallet received as many Bitcoin Cash coins as they had Bitcoins (i.e., 1 BCH for 1 BTC). This is an example of an airdrop after a hard fork. What are the most famous airdrops? Let’s see.
Auroracoin for Icelanders
Auracoin’s claim to fame lies in its pioneering approach to cryptocurrency distribution. Setting the stage for one of the most famous crypto airdrops in history, the development team chose to distribute the tokens for free to eligible participants rather than opting for conventional methods like initial coin offerings (ICOs) or token sales. This strategy not only boosted the adoption of Auracoin but also popularized the concept of airdrops as an effective marketing tool and a means to foster community engagement.
Eligible participants were required to register and undergo the know-your-customer (KYC) process to ensure a fair distribution. The developers prioritized certain demographics and regions in an attempt to address financial inequality and promote economic growth, making Auracoin more accessible and appealing to a wider audience.
The Auracoin airdrop left a lasting impact on the cryptocurrency landscape, paving the way for countless other projects to utilize airdrops for token distribution. By democratizing digital currencies and allowing more individuals to participate in the crypto ecosystem, Auracoin’s legacy continues to inspire and shape the world of digital currencies.
On July 12, 2018, all EOS holders who had registered the Ethereum address got the IQ Tokens, native Everipedia tokens for in-platform usage. Users got 5.1 IQs for every EOS coin in their wallets.
In 2019, the airdrop of the BitTorrent token (BTT) happened. The coin was offered to all TRON (TRX) holders in the ratio of 1 TRX to 0.11 BTT. Only users who stored more than 100 TRX could receive airdropped funds.
Stellar hands out $125 million in XLM tokens
All owners of the Blockchain wallet could participate in the airdrop. The giveaway was the result of a partnership between Stellar and Blockchain. Block Smith CEO Peter Smith noted that Stellar had been chosen because the project was “built for scalability and has an evolving ecosystem.” Airdrop allowed users to test the usage of XLM tokens in their Blockchain crypto wallet.
How to Take Part in a Crypto Airdrop?
If you don’t have money to buy top-end crypto assets or if you just want to get free crypto that can grow twofold or even more, then you need to choose projects more thoroughly to obtain really promising coins or tokens.
The amount of an asset that is distributed as part of an airdrop campaign may vary, depending on the total number of coins issued, the initial price, the percentage of cryptocurrency allocated to the airdrop, and the desire of developers and the project management to give the asset for free.
Even though each project has its own conditions for distributing coins through an airdrop, in most cases, this is a relatively simple process. To participate in airdrop campaigns, you will need:
- an active cryptocurrency wallet suitable for the cryptocurrency that is being distributed;
- a Telegram account for subscribing to the project’s channel (if required, as well as pages on Twitter, Facebook, or any other social networks specified in the airdrop conditions);
- a BitcoinTalk Forum account,
- an email address: it is advisable to use a new one or one to which exchanges and crypto wallets are not tied.
How to Get Info about Upcoming Crypto Airdrops?
There are several ways to stay updated on future free token distributions. The projects announce them on their social media, the Bitcointalk forum, Reddit, or Quora. However, the most convenient way is to follow the accounts that track all the airdrops and update the info. Here is a list of several accounts on Twitter and dedicated websites that post information on the latest airdrop coins.
You can get alerts about new airdrops by simply following the social media of these websites. For instance, you can set the airdrops.io alert by following their Twitter, Telegram Channel, or Facebook. You can also subscribe to the email newsletter here.
While crypto airdrops can be a tempting way to acquire free tokens or coins, it’s important to remember that their value is not guaranteed. Instead of waiting for an airdrop, some users may find direct crypto purchases more beneficial. By buying crypto, you have more control over your investment and can choose to hold it long-term or trade it for other assets. Additionally, buying crypto from a reputable exchange can ensure additional security and protection for your investment.
How to Avoid Cryptocurrency Airdrop Scams
While airdrops can be an exciting way to earn free tokens or get involved in a new crypto project, it’s essential to be aware of airdrop scams. Unfortunately, there are many fraudulent airdrop campaigns out there, and falling for them can result in the loss of your valuable assets. In this section, we’ll discuss how to avoid airdrop scams and ensure that you only participate in legitimate crypto airdrops.
- Be skeptical of airdrop tokens that seem too good to be true.
If an airdrop campaign is offering an absurd number of tokens for little to no effort, it’s likely a scam. Always do your research and check the legitimacy of the airdrop before participating. Look at the website of the crypto project and verify if the airdrop is mentioned there. Legitimate crypto airdrops usually offer a reasonable number of tokens for participation, such as a few hundred or thousand.
- Check the legitimacy of the crypto project behind the airdrop.
Before participating in an airdrop, research the crypto project behind it. Look for information about the team, their background, and previous projects they’ve worked on. If the team is anonymous or there is no information available about them, it’s a red flag. Legitimate crypto projects are transparent about their team and have a clear roadmap and whitepaper outlining their plans and objectives.
- Verify the authenticity of the airdrop campaign.
Scammers can easily create fake airdrop campaigns that mimic the branding and messaging of legitimate crypto projects. Always verify that the airdrop campaign is legitimate before participating. Check the official website, social media accounts, and forums of the crypto project to see if they’ve announced the airdrop campaign. If the information is not available or there are discrepancies in the information provided, it’s likely a scam.
- Don’t share your private keys or personal information.
Scammers may ask for your personal information or private keys, masquerading their request as the requirement for participation in the airdrop. Never share this information with anyone, as it can result in the loss of your valuable assets. Legitimate crypto projects only require you to provide your wallet address, and they never ask for your private keys or personal information.
And here are some pro tips for avoiding scam websites:
- Check the official website of the cryptocurrency in a reliable source and compare it with the address of the proposed airdrop. Most often, attackers copy the design of the official website entirely, and in the address bar, they imperceptibly change a couple of characters.
- The cryptocurrency must be listed on CoinMarketCap.
- Do not make any donations to become an airdrop participant. It’s 100% fake.
- Check the spelling and punctuation. A self-respecting developer will not send out a text with mistakes.
Cryptocurrency Airdrops: Summary
In conclusion, participating in a few crypto airdrops can be a great way to earn free tokens and get involved in exciting new crypto projects. However, it’s essential to be aware of airdrop scams and only participate in legitimate crypto airdrops. By following the tips outlined above, you can avoid falling victim to airdrop scams and ensure that you only participate in airdrop campaigns that are safe and legitimate.
An airdrop is not a way to earn quick and big money, but it is an opportunity to get acquainted with the world of digital currencies. Sometimes coins start to grow in price as platforms gain popularity. In this case, after a year or maybe more, the received tokens can bring a good income.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.