So-called airdrop hunters make collecting airdrops their life’s work. They research and interact with a variety of protocols, social media channels and cryptocurrencies in hopes of being rewarded for doing so. This can sometimes be very lucrative.
However, it is also associated with great uncertainty because it is difficult or almost impossible to predict air droplets. This is mainly the case because projects protect themselves from airdrop hunters and Sybil attacks (a user wants to dust off a respective airdrop more often and trick the system). Therefore, projects develop their own criteria for distributing an airdrop.
One of the biggest benefits of airdrops: they normalize users like you and me getting a larger share of rewards from projects they support. But what exactly is an airdrop and can you really make that much money from it? In this article, you will learn everything you need to know about the new crypto marketing tactic. Let’s start from the beginning.
What is an airdrop anyway?
A crypto airdrop is not part of a military strategy, nor is Apple software for sending files. Rather, an airdrop is a marketing tactic where coins or tokens are sent to different wallet addresses.
A few years ago, airdrops were first used as a crypto marketing tactic that allows lesser-known and new projects to gain exposure and build a community and decentralized network.
However, the practice of using airdrops has evolved over time and in step with what is happening in the crypto scene. The term now covers many different forms of token payments.
Crypto projects have a certain amount of tokens that are used for airdrops. If you meet the conditions for participation, you can also benefit from it. But what exactly are the conditions for participation and what types of airdrops are there?
What airdrops are there and who are they sent to?
With a whole normal air drop you log into a website, fill out a survey with your wallet address, or simply post it on a social media channel like Twitter or Discord. They are very popular because you can easily join and get free cryptocurrencies in return. However, this kind of airdrops are often not an insider tip and only have a certain number of tokens given out.
It looks different Airdrops that you get in exchange for certain activities. They are also often called bounties, which means bounty bonus. Here you often have to put in real work, but in return you are paid more generously. The activities represent a certain added value for the crypto project (translations, posts on social media, code), which is exactly why many projects now choose this form of airdrop.
Another form is the distribution of tokens owner of a particular project. You receive crypto if you own a certain number of tokens of another cryptocurrency or NFTs. Within NFTs, airdrops are particularly often distributed to project owners, and the most successful NFT projects make use of them.
The most famous airdrops in crypto history
Of bitcoin cash-Airdrop represented a highlight of the crypto year 2017. At that time, the Bitcoin network split into two parties by creating a hard fork of the BTC network. The code was duplicated, and part of the Bitcoin miners and developers supported the new network from now on, which had to be made much more efficient. Bitcoin owners were credited with the same amount of Bitcoin Cash (BCH). Almost no one talks about the project anymore.
Listed on September 1, 2020 Uniswap cave The state of the Ethereum blockchain. Anyone who had traded on the decentralized exchange up to that point could look forward to 400 UNI tokens. The price of these tokens was over $1,000 at the time. That’s quite a lot when you consider that around 12,000 addresses were taken into account.
Airdrops also play a central role in the NFT world. Of Bored Ape Yacht Club is probably the most well-known NFT project and conquered the mainstream with record speed. The monkeys increased in price from 0.1 to as much as 160 ETH. As if a thousand times the purchase price wasn’t enough, the owners got all sorts of airdrops. These include other NFTs such as Mutant Apes, digital parcels of land from the Bored Apes Metaverse, and a proprietary token called ApeCoin.
Training helps against the risks of the crypto market
Caution: You should always be careful when receiving funds in the form of airdrops. Many scammers target unsuspecting people and try to rob you of your cryptocurrencies. There are phishing attacks, pump and dumps and many other scams.
Especially for beginners, the crypto market is unclear and confusing, down to downright dangerous. It is therefore important, especially as a beginner, to deal well with the subject. This is the only way to make informed decisions and survive in the cryptocurrency world.
Therefore, there are several platforms that offer a wide range of continuing education for beginners and advanced users. So if you are interested in crypto education, you can take a look at Binance Academy for example. There you will find answers to the most important questions about Bitcoin, Blockchains, NFTs, Metaverse, Gaming and much more.
Get a 10% discount on your newsletter subscription
Applies to BTC-ECHO magazine in trial subscription, annual subscription or for single issue. Register now!
For the newsletter
Sponsored posts are paid articles for which the advertiser is solely responsible. BTC-ECHO assumes no responsibility for the promised services or investment recommendations.
The latest issues of BTC-ECHO Magazine
You may also be interested in this