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Crypto airdrops are basically free coins or NFTs that are basically dropped directly into our wallets and become claimable based on the user’s interaction with the project. A standard cryptocurrency airdrop transfers an amount of native coin or token into existing wallets as a marketing strategy.
Though there are several different types of airdrops, most basic projects involve some tasks around registering with the project, interacting with fellow users in Discord as well as like or share their pages in twitter for users to receive their free digital assets at the appropriate wallet addresses.
However, some airdrop models may require users to perform certain tasks to receive their airdropped assets, but the result will be the same: Snapshots of users’ wallet addresses are recorded before the cut-off date and time. Ideally many people have started hunting for airdrops and recent projects require users to perform advanced tasks such as using the native bridge or providing liquidity to the project which may require us to spend a small amount of money.
A higher number of holders is often regarded as a favorable indicator and leads to decentralization of the project in terms of token ownership. Crypto airdrops also encourage users to use and spread a word about the project thus enabling it to build a strong following before it gets listed on the cryptocurrency exchanges.
For instance, in 2018 Stellar Lumens (XLM) airdropped $125 million worth of tokens to users of Blockchain wallet, one of the most popular crypto wallets at the time which resulted in over 30 million new accounts being created on the Stellar network.
Uniswap (UNI) - Uniswap was notably one of the first projects to retroactively distribute rewards to their users via airdrop. The UNI token airdrop occurred to more than 250,000 Ethereum wallets. All in all, 400 UNI (worth about $1,400 at the time) were distributed to more than 250,000 accounts — airdropping a grand total of more than $350 million
THORChain (RUNE) - In July 2021, THORChain launched its THORstarter airdrop, offering users the opportunity to earn up to 1,000 RUNE tokens by participating in a liquidity provision event.
Avalanche (AVAX) - In July 2021, Avalanche launched a $180 million liquidity mining incentive program that included an airdrop of AVAX tokens to users who had interacted with the platform before the launch.
Blur (BLUR) – In February 2022, Blur rewarded its users with its highly anticipated token airdrop. The airdrop released 360 million tokens, comprising about 12% of the total supply of the project.
Arbitrum (ARB) – In March 2023, Offchain labs the company behind arbitrum announced that one billion tokens will be airdropped to more than 600,000 wallet addresses. The minimum airdrop entitlement is 625 tokens, and the maximum airdrop entitlement is 10,250 tokens.
While being an early user of new protocols is the first step toward receiving potential airdrops, making only one or two transactions may not be enough to qualify. While thousands of users received lucrative airdrops from projects like Uniswap, Ethereum Name Service, and dYdX after making just one or two Ethereum transactions, airdrop eligibility criteria has become stricter across the board.
There are several sources to scout airdrops. For instance, websites such as Coinmarketcap, Airdrops.io, Airdrop Alert list out potential airdrops that are upcoming across several blockchains. Also, there are several crypto analysts that post feeds about rumored and upcoming airdrops in twitter.
Rumored airdrops are also often highly speculative and we urge our readers to do their research and due diligence before partaking in an exercise. It’s also important to note that there are many risks associated with airdrops.
Hackers may use phishing scams to lure users to connect their wallet to a fake airdrop website and trick them into agreeing to let a smart contract spend their assets. This is a popular method for draining assets from wallets. Stay alert and pay close attention to airdrops, especially when high amounts are promised that are too good to be true.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.