What Is a Crypto Airdrop?

To encourage Bitcoin adoption as the country expanded its legal tender to Bitcoins, El Salvador credited everyone who installed the government-built wallet with $30 worth of BTC. The first cryptocurrency airdrop is attributed to AuroraCoin (AUR) on March 25, 2014. Intended to be the cryptocurrency for the nation of Iceland, every citizen or permanent resident who submitted their national ID received 31.8 AUR. Some may prefer to instead focus on rewarding miners or other contributors of a network instead of releasing free tokens to non-heavy contributors of a project. Discover how these unique auctions are altering the digital art landscape and offering new investment opportunities.

Participants in the competition must do nine tasks, including following this new cryptocurrency initiative on social media after they have $100 or more in TAMA. The answer is that the US dollar is the most globally used currency, and cryptocurrencies are still relatively new. The more people that use a currency, the stronger its network effects become. Crypto development teams often use their project’s crypto token to help grow their network and encourage new users to get involved. Typically, you must meet certain requirements to be eligible for an airdrop. These requirements are determined by the project and can involve anything from simply signing up to completing tasks (i.e., promoting the project on social media).

Whatever the reward, it’s gifted to those who have met or exceeded a threshold amount. NFT-to-token swap platform Sudoswap has yet to launch its own governance token, to be named SUDO. When it does, those holding NFTs of its sister application, Oxmon, or OXMON tokens will be on the receiving end of the first batch.

A portion of the reward pool, which totals 20 million TDX, will go to those who do basic tasks for Tidex. You must register for a Tidex account, go through the KYC procedure, and deposit $20 worth of cryptocurrency to participate in the airdrop. Users are permitted to collect token rewards once every 30 days on a first-come, first-served basis.

  1. Most commonly, widespread outreach is achieved across forums and social media platforms such as Discord and Twitter.
  2. This approach aims to attract these coin holders to the new project, banking on their interest and potential investment in similar projects.
  3. Because wallets and blockchain information are part of a publicly distributed ledger, all users of blockchain have full transparency into the wallets and distribution of tokens.
  4. People receive crypto airdrops in large quantities in their digital wallets.

After its listings, IBAT may be purchased on PancakeSwap by cryptocurrency investors. As the native utility token of a player-to-earn (P2E) game and metaverse project, that is a means to make an early investment in a new cryptocurrency with significant potential upside. Beyond these airdrop-specific risks, keep in mind that crypto is highly volatile, and may be more susceptible to market manipulation than securities.

Can You Make Money From Crypto Airdrops?

Spreading awareness is the primary reason why blockchain startups conduct airdrops. A flood of startups emerged during this gold rush, often with only a flimsy and partially plagiarized white paper in hand, oversaturating the market and jading investors. This list of the finest crypto airdrops includes the well-known Ethereum wallet because it is speculated to create its currency.

Fake Crypto Airdrops and Phishing Scams

Uniswap rewarded over 250,000 early users of its exchange platform with an airdrop of Uniswap tokens (UNI) in September 2020. Those who had made at least one transaction on the platform prior to that September were eligible for the airdrop, with recipients gaining at least 400 UNI. Two days following the airdrop, the value of UNI increased by 160 percent, gaining the token attention during its airdrop window. These service-oriented airdrops are sustained by small favors and voluntary legwork done by recipients. Recipients face risks as well, of which there are 2 important ones to note. To receive an airdrop, you may be required to sign up via a third-party site.

This stunt generated a lot of chatter in the community, Robson said, but did not pose LooksRare as a long-term sustainable competitor to OpenSea. While many were excited by the large prize amount, and some — Robson included — used the opportunity to cash out, there was a change of tune when the founding developers had the same idea. For example, NFT marketplace LooksRare airdropped its token to users who had completed transactions via OpenSea, the leading platform in this sector. If you’re holding a valuable sum of crypto assets on that wallet address, you could theoretically get targeted through phishing, SIM swap and other hacking attempts, or real-life extortion and violence. Crypto projects give out generous bounties through airdrops because they are the biggest beneficiaries of such events. Let’s explore the fundamental reasons why crypto startups conduct airdrop programs.

Although Tamadoge’s airdrop is still active as of this writing, Lucky Block may offer the finest overall crypto promotion because of all the advantages of joining the project. A decentralized blockchain technology bitcoin and crypto mining hardware called DeFiChain promises to increase services’ effectiveness, intelligence, and transparency. The initial supply of 2 billion TAMA is continually dwindling as the Tamadoge developers burn 5% of the TAMA spent.

The goal of VIRAL, highlighted in CoinTelegraph, comprises the holder making money via reflection. In simple terms, bounty airdrops are not truly free in that they require some form of labor in order to qualify. Development teams release airdrops for a variety of reasons, including to amplify marketing and help build a fanbase. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions.

Some businesses could ask a wallet owner to participate in marketing tasks like tweeting about the new digital currency or posting on a reputable cryptocurrency forum. The website offers trading for more than 70 unique agile team facilitation icp-atf training course tokens and over 100 crypto pairings. One of the finest crypto airdrops is offered by Tidex, where you may receive up to 200 TDX. Bitcoin holders received 500 DFI tokens for every 1 BTC owned via DeFiChain in late 2020.

Reasons Why Crypto Projects Do Airdrops

A crypto airdrop is a marketing strategy used by blockchain-based projects that involves divvying out free tokens en masse as part of a broader promotional initiative. The term ‘airdrop’ is derived from the traditional method of dropping supplies or information from the air to a specific location. A crypto airdrop is the distribution of free cryptocurrency tokens or coins to a large number of wallet addresses. Airdrops are generally promoted on the company’s website, social media, and cryptocurrency forums. Coins or tokens are sent only to specific wallets based on the blockchain network or coins held in existing wallets.

For easy activities like following this new cryptocurrency initiative on social media, Battle Infinity offers $3000 in IBAT cryptocurrency tokens. Battle Infinity will announce any upcoming crypto airdrops on their Telegram channel. They can act as a marketing tool for a new project or platform, distribute governance tokens to encourage user participation, or reward how to buy woo users for their loyalty or participation in a protocol. If a startup provides crypto airdrops, check its on-chain security measures, token fee policies and project goals before making any further token investments. Be aware of any code issues in token smart contracts, non-transparent trading or selling fees or a lack of product outline overall from these entities.

Raffle Airdrop

Additionally, 10% of the earnings are distributed to LBLOCK owners who participate in the daily charity voting process. The last 2% is put into the NFT prize fund, while the remaining 8% is allotted to marketing. The new metaverse game Battle Infinity is now celebrating reaching milestones in its plan with crypto giveaways akin to airdrops. However, many of them, like its initial airdrop, don’t need to hold their native currency, IBAT.

In a Holder Airdrop, tokens are distributed to users based on their existing cryptocurrency holdings. In other words, if you’re a holder of a particular cryptocurrency, you could receive free tokens of a new project directly into your wallet. This type of airdrop aims to reward loyalty and engage users who have already shown interest in similar projects. Once the eligibility criteria are met, the project team allocates the coins or tokens to the participants’ wallet addresses.

When a protocol branches off or hard forks from its original code, splitting into two separate platforms, developers airdrop the new coins as a crumb trail to convert native users. An example of a hard fork airdrop would be ETHPoW, a proof-of-work chain going separate ways with Ethereum since it transitioned to a proof-of-stake system in an event known as The Merge. Like holder airdrops, these simply require users to hold the original token. Numerous businesses and start-ups deposit brand-new virtual money into the wallets of committed blockchain users.

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