Cryptocurrency airdrops have become very popular lately, with many cryptocurrency start-up projects employing it to gain mass adoption of their projects.
What are Cryptocurrency Airdrops?
Cryptocurrency airdrops are distributions of units of cryptocurrency projects usually to many wallet addresses for the purpose of publicising the crypto projects and gaining engagement. Airdrops can be in the form of cryptocurrency coins, tokens or even NFTs.
It is derived from the concept of literal airdrop parachutes that transport and drop heavy equipment.
Some airdrops are given for free. While most of them are usually distributed in exchange for some tasks which will help in the promotion of the project. Some of these tasks include;
- Following social media pages
- Inviting more persons to join the airdrop giveaway in exchange for more airdrop tokens
- Commenting on social media pages and websites
- Using the platform of the new cryptocurrency project
Other factors that may influence getting an airdrop include: holding a certain amount of token or coin on the same blockchain the airdrop was developed on, or actively engaging in transactions on a particular blockchain.
Why are Crypto airdrops useful?
Airdrops are mainly used for marketing purposes, to raise awareness about a novel Cryptocurrency project and get people to start using the platform and coins or tokens.
Airdrops promote mass adoption which is important to define the value of a coin or token in the cryptocurrency system.
The increase in holders of a token or coin and increased volume of transactions can drive the price of the coin/token upwards and increase the utility of the coin depending on its use case.
How to hunt and claim Airdrops
Airdrops can be very profitable if you know how to go about them. Some airdrops will be dropped into your wallet address while others will require you to claim them on the website or issuing platform.
The first step is to find out or discover upcoming cryptocurrency projects that are offering airdrops. This can be done by joining communities on Telegram or keeping up with Twitter news and hashtags (#airdrop).
The best way to find out about legit upcoming airdrops are by websites. Some well known websites for learning about airdrops include:
If you discover any new projects, make sure to read the instructions or requirements for airdrop eligibility carefully.
Another important step is to get registered on the platform. Before registration, a crypto wallet address is necessary, because it is usually requested at the time of registration.
Bitcoin and Ethereum addresses are usually the most popular ones required. Note however, that most times, the airdrop project issuers may require you to open a wallet with the blockchain they are using to develop their project.
After creating a wallet address, proceed to follow the instructions and complete any assigned tasks, if there are any, to remain eligible for the airdrop.
Even after completion of tasks, because of the large amount of people interested in the airdrop, sometimes you might not get the free tokens or coins.
How to identify scam airdrops
Despite the wide acceptance and popularity of cryptocurrency airdrops, a lot of caution needs to be taken to avoid being scammed and having your wallet drained of its coins.
To avoid Airdrop scams, make sure that the airdrop project is mentioned on a reputable website. Check the airdrop’s website and social media handles, and also use hashtags to see what others are saying about the airdrop.
Scam airdrops usually have unverified social media accounts and suspicious websites with scanty details. They may also redirect you to another website which will request for private information such as your seed phrase for verification. This is a disguise and ploy to get information from you to steal your tokens. Don’t fall for it!
Be wary of direct airdrop announcements sent to your mail or telegram, or unsolicited additions to Airdrop groups on telegram. These are red flags and mostly scam airdrops.
Also, airdrop projects will typically not require you to pay any money or send any coins in exchange for airdrops. If any airdrop requires you to do these, it is a scam.
Always remember to DYOR (Do Your Own Research) before registering for airdrops, and maybe open wallet addresses dedicated to airdrops to be safe.