An integral part of thriving in the crypto-sphere is being well versed in terms of airdrops. If you want to succeed in the world of NFTs and cryptocurrencies, then it is essential that you understand methods through which you can get free NFTs and cryptocurrencies. An airdrop is one of the most viable option that you can explore.
In this blog, we will explore, the art of Airdrops. We will walk through;
What is a crypto airdrop?
An airdrop in the cryptocurrency world is a distribution of a certain number of free tokens to a specific group of people, usually as a promotional campaign or for other marketing purposes. The tokens are typically distributed to holders of a specific blockchain platform’s tokens or to individuals who have registered for the airdrop with their cryptocurrency wallet address.
A crypto airdrop can be thought of as a way for blockchain projects to build a community and increase awareness about their project. In most cases, the airdrop is used to encourage individuals to learn more about the project and to hold onto the tokens that they receive. Airdrops can also be used to incentivize individuals to complete specific tasks, such as referring friends to the project or contributing to its development.
Airdrops can be a way for an individual to get their hands on valuable cryptocurrency without having to purchase it. That being said, airdrops are usually not a significant amount of tokens, usually ranging from a few cents to a few dollars in value, and the value of the token may change over time and can go to zero.
It’s important to be aware of the potential scams out there and only participate in airdrops from reputable sources, also to research the project before participating.
It’s also important to keep in mind that not all airdrops are created equal, some are real with real teams behind, and some are scammers that only want to get your private key to your wallet, so be aware and be safe.
How do crypto airdrops work?
A crypto airdrop typically works as follows:
- A blockchain project announces that it will be conducting an airdrop. This may be done through social media, email marketing, or other forms of promotion.
- Interested individuals will need to register for the airdrop. This may involve providing their cryptocurrency wallet address, email address, or other contact information.
- After registration, participants may need to complete certain tasks or meet certain requirements in order to be eligible for the airdrop. These tasks can include following the project on social media, referring friends to the project, or holding a specific number of tokens from the project’s blockchain.
- Once the airdrop is complete, the tokens will be distributed to the eligible participants. Depending on the project, this may happen all at once or over a period of time.
- The recipients can then access their tokens using their cryptocurrency wallet. They can hold onto the tokens in the hopes that their value will increase in the future, or trade them on a cryptocurrency exchange for other digital assets.
It’s important to note that different airdrops may have different requirements, so it’s important to carefully read the instructions and requirements of each airdrop before participating. Also, airdrops may have different lock-up periods, meaning you can’t sell or transfer the tokens until a certain period of time.
It’s also worth noting that a crypto airdrop can be made on different blockchain networks, so it’s important to make sure that your wallet address is compatible with the network of the airdrop.
What are the different types of crypto airdrops?
There exist several different types of airdrops. Some of the most common types are as follow;
1. Token airdrop
This is the most common type of airdrop, in which a blockchain project distributes free tokens to individuals. These tokens may be used on the project’s platform, or they may be traded on a cryptocurrency exchange for other digital assets.
2. Forks Airdrop
This type of airdrop is used when a blockchain project forks (split) into two different chains. Holders of the original token can receive an airdrop of the new token in a 1:1 ratio, meaning if they held x tokens they will receive x tokens of the new token.
3. Bounty airdrop
This type of airdrop involves completing certain tasks or participating in a project in exchange for tokens. This can include things like social media promotion, bug reporting, or contributing to the project’s development.
4. Snapshot Airdrop
This type of airdrop is a way to distribute tokens to the holders of a specific blockchain’s tokens at a specific block height, the process is called “taking a snapshot” of the blockchain and the holders of the token at that specific point in time will receive the airdrop token.
5. Claim Airdrop
This type of airdrop is when a project has been inactive for a while and it wants to reward its holders, in that case, the holders need to claim the airdrop by providing specific information.
6. ICO Airdrop
This type of airdrop is when a project is about to launch an ICO, it distributes tokens to its holders as a way to seed its own community with holders before the launch.
7. Raffle Airdrop
A raffle airdrop, also called lottery airdrop, is a type of crypto airdrop in which the tokens are distributed to a randomly selected group of individuals rather than being distributed to everyone who registers or meets certain requirements. In this type of airdrop, participants enter into a raffle or lottery, and a certain number of winners are chosen at random to receive the tokens. The odds of winning will depend on the number of participants and the number of tokens being distributed.
Why do Airdrops take place?
Airdrops take place for a variety of reasons, but the primary goal is usually to build a community and increase awareness about the project. Some of the main reasons why projects conduct airdrops include:
- To build a community: Airdrops are a way to distribute tokens to a large number of people, which can help to build a community of users and supporters for the project.
- To increase awareness: By giving away free tokens, airdrops can help to increase awareness and interest in a project, which can in turn lead to more investment and adoption.
- To incentivize behavior: Airdrops can be used as a way to incentivize individuals to complete specific tasks, such as referring friends to the project or contributing to its development.
- To increase the token’s adoption: By giving free tokens, airdrops can increase the adoption of the token, making it more valuable and with more utility, since more people are using it.
- To reward early adopters: Some projects conduct airdrops as a way to reward individuals who have been early supporters of the project, for example, holders of specific token for a certain period of time.
- To distribute tokens for free: It could be for the sole purpose of distributing a portion of the token supply for free.
Crypto airdrops & where to find them
NFT (non-fungible token) airdrops are similar to regular crypto airdrops, but instead of receiving coins or tokens, you receive NFTs. Here are a few ways to find NFT airdrops:
- Join NFT communities on social media platforms such as Telegram, Twitter, and Reddit. Many projects announce their NFT airdrops in these communities.
- Check NFT airdrop listing websites such as nftdrops.com, nftairdrops.com and nonfungible.com. These websites list current and upcoming NFT airdrops.
- Follow NFT-focused news websites such as NFT.Report, NFT360 and NFT.Farm. They often report on new NFT airdrops.
- Join NFT airdrop-focused Telegram groups or channels that provide information about new NFT airdrops on a regular basis.
Pros & Cons of Airdrops
Here are some of the pros and cons of airdrops to consider:
- They can be a way to acquire valuable digital assets without having to purchase them.
- Airdrops can be used to build a community and increase awareness about a project.
- They can also be used to incentivize specific behaviors, such as referring friends or contributing to the project’s development.
- Airdrops can increase adoption and distribution of a token, making it more useful and valuable.
- They can also be a way to reward early adopters or holders of specific tokens.
- The value of the tokens or NFTs distributed through airdrops can be highly speculative and may not always increase in value.
- There is a risk of scams and fraudulent airdrops, so it’s important to be cautious and do your own research before participating in any airdrop.
- The market for NFTs is still relatively new and untested, and the value of NFTs can be highly volatile.
- Some airdrops require specific action such as holding a certain amount of tokens for a certain period of time.
- Airdrops can also be subject to regulations and taxes, so it’s important to be aware of the laws in your jurisdiction before participating.
It’s important to weigh the pros and cons of airdrops before participating in any. Always do your own research, consult with a financial advisor, and consider all the risks before making any investment decisions.
The Top Upcoming Crypto Airdrops
In the crypto-verse, it is imperative to remain vigilant of any upcoming airdrops for NFTs. Some of the most popular NFT airdrops that you should be looking out for are;
- NFT airdrops from Blur NFT marketplace that will be launching in 2023. If you are currently holding NFTs in a web3 wallet, feel free to take part in the Blur airdrop by visiting their website.
- If you are a $OSMO, $ATOM and $AKT staker, then you are eligible to participate in the airdrops from Cosmos Ecosystem. In 2023, at least 3 highly anticipated airdrops are expected.
- Another NFT airdrop will be available for Sei Network that is a layer 1 blockchain which will announce its snapshot date soon. Those eligible to participate will be $ATOM stakers, only.
Are crypto airdrops and NFT airdrops worth the hype?
Crypto airdrops and NFT airdrops can be a way for individuals to acquire valuable digital assets without having to purchase them. However, it’s important to understand that the value of the tokens or NFTs that are distributed through airdrops can be highly speculative and may not always increase in value.
Airdrops can be a useful way for blockchain projects to build a community and increase awareness about their project, but it’s important to keep in mind that not all projects that conduct airdrops are legitimate or will be successful. There have been many cases of scams and fraudulent airdrops, so it’s important to be cautious and do your own research before participating in any airdrop.
It’s important to note that the value of an NFT also depends on its rarity, uniqueness, and the reputation of the artist or creator behind it, in addition to the utility or use-case that it provides.
It’s also important to be aware that the market for NFTs is still relatively new and untested, and the value of NFTs can be highly volatile. So, it’s crucial to be aware of the potential risks and only invest what you can afford to lose. Given the situation of the world, many have raised questions about the authenticity of NFTs. If you are wondering the same, then read our blog.