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What are crypto airdrops?

  • Users of cryptocurrencies who engage with both new and old platforms frequently are likely to at some point receive an airdrop. 
  • Airdrops involve blockchain-based companies and developers giving away free tokens to members of their communities.

A crypto airdrop is a marketing strategy in which digital tokens are sent directly to users’ wallets. This might be provided without charge or in exchange for completing a quick action like following the business account or retweeting a message. The ultimate objective is to raise a token’s visibility and accessibility among the broader public. 

You may be curious about how crypto airdrops operate. A predetermined number of tokens are made accessible by crypto initiatives, which they distribute to participants after verifying their eligibility. You can qualify for these tokens by finishing tasks. 

Crypto airdrops can be taken part in a variety of methods. You must frequently take additional steps or sign up for an airdrop. You can collect the tokens after completing activities or winning them; alternatively, they will be transferred into your wallet.

Examples of cryptocurrency airdrops

In the past, there have been hundreds of airdrops, including those of well-known cryptocurrency projects. There are, therefore, a tonne of instances of cryptocurrency airdrops. In the cryptocurrency industry, airdrops have been common for years. In 2014, the first airdrop ever occurred. A cryptocurrency project even distributed 50% of its tokens back then during an airdrop.

The cryptocurrency token used by the Auroracoin project is called AUR. AUR was intended to become Iceland’s official cryptocurrency under the initiative. As a result, Icelandic nationals received the entire airdrop of AUR, which amounted to 31.8 AUR per person.

The Auroracoin airdrop was followed by several others, some of which were for cryptocurrencies that were more well-known. For instance, Stellar Lumens (XLM) and Bitcoin Cash (BCH), which organized cryptocurrency airdrops in 2016 and 2017, distributed their airdrop coins to Bitcoin owners, respectively. Bitcoin Cash spread one token per Bitcoin, which peaked at thousands of dollars in value.

Various kinds of airdrops

Many cryptocurrency projects use airdrops as a marketing technique to expand through the airdrop. Projects might seek to reward their initial users or increase brand recognition and attract more users.

The type of airdrop and a cryptocurrency project’s motivation are connected. There are a few popular crypto airdrop types, including:

  • Standard airdrop

Tokens are given out for free, and no particular actions are required in a regular airdrop. To get started, you must sign up for an account anywhere and enter your wallet address.

  • Bounty airdrop

You can earn rewards for performing tasks with bounty airdrops. You pay for free Bitcoin tokens with energy and effort because these jobs require some work. The chores are frequently not challenging but are essential for a cryptocurrency enterprise. This is the reason more and more new projects are utilizing token airdrops.

  • Holder airdrop

You can get cryptocurrency tokens through a holder airdrop if you own a specific quantity from another coin. Your airdrop’s size is calculated using a snapshot. Your cryptocurrency wallet gets taken into a photo at a particular time. Although it could happen at a precise hour, this moment typically occurs on one specific day. Depending on how many tokens you have in your wallet, you can expect to receive a certain quantity of cryptocurrencies.

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