In most cases, crypto platforms will require users to follow, join, and subscribe to their social media pages or channels in exchange for airdrop eligibility. Sometimes staking is another prerequisite. Adhering to these requirements will allow users of the platform to receive free tokens through what is called “airdrop distribution” that is carried out by specialized apps directly on the device.
This means that if you are interested in grabbing some free coins, all you have to do is provide your wallet address, follow the platform’s instructions, and wait for the tokens to appear.
What is the motivation behind Airdrops?
As mentioned, airdrops are mainly used as a marketing tool among many blockchain- and cryptocurrency-based companies. However, in addition to its usefulness as a marketing strategy, airdrops are also useful for ensuring a fair distribution of the platform’s tokens. Airdrops are also a decent way to ensure greater interest from the public on a particular project, thus increasing the change in the increase in tokens of that project. Once a critical mass of users start interacting with a platform thanks to airdrop, awareness of the platform increases and project team members can also expand their network by increasing platform development.
To add, platform token holders and early adopters will also benefit from airdrops. Airdrops of additional tokens means that more people will become aware of your presence, which in turn results in more demand for your token, and this increase could have a positive effect on the overall value of your platform’s token.
Finally, individual cryptocurrency ecosystems will benefit more people who have, trade, and trade crypto. Essentially, airdrops increase liquidity and distribution.
What are the requirements for Airdrops?
In most cases, in order to join an airdrop, you will have to meet specific requirements from the hosting platform. This is because some airdrops only allow a fixed number of participants, which means that not everyone who signs up can receive tokens. In addition to that, in some cases, there may also be a minimum requirement for how much you should keep of the token in question. Therefore, the airdrop could only apply to token holders who participated in the presale of the project.
While the requirements and
conditions for each airdrop vary depending on the rules and regulations of the project, it is important to note that most projects will not require you to provide personal information as long as the wallet address and token you hold are listed among the eligibility requirements. Also, legitimate airdrops will never ask users to invest in airdrops. Once you qualify for airdrop a project, participating and receiving tokens shouldn’t be a problem.
Examples of Airdrops
Popular examples of airdrops include the distribution of SOS tokens by OpenDao that were awarded to users who had previously interacted with OpenSea’s NFT marketplace. For this airdrop, recipients didn’t need to complete tasks. All they had to do was receive the tokens from the OpenDao website. With the airdrop, OpenDao managed to double its Twitter following from less than 60,000 to more than 150,000 at the time of writing.
Uniswap, one of the best decentralized exchanges on the Ethereum ecosystem, also launched an airdrop with the launch of their UNI governance token. At the end of the operation, 150 million UNI governance tokens were distributed to Ethereum residents who had previously interacted with the DEX in one way or another. this meant that any wallet that had ever interacted with Uniswap before the airdrop could request 400 UNI tokens worth over $1000 at the time. Currently, the same amount of UNI is worth about $4000.
The downside of the Airdrops
As big as they may seem, airdrops may not be for everyone. This is because the tokens you receive from the platform’s airdrop usually have no collateral and can never be traded on cryptocurrency exchanges.
In some cases, tokens cannot be used to do anything other than be stored in your wallet and will only become valuable if the platform becomes popular and successful.
Beware of Airdrop
Airdrops offer a great way to attract people’s interest in new cryptocurrency projects and tokens. They also offer cryptocurrency enthusiasts an easy way to get invested in a project that has potential.
However, this does not mean that all airdrops are the same. Some may require participants to complete tasks for tokens, while others may be worth nothing without initial user growth on the platform in question. The bottom line is this: if you have time and effort, it is possible to make easy money; However, like many other things in the crypto-world, it’s important to be careful when it comes to seemingly tempting offers. This is because some scammers use airdrops as bait to steal your personal information and money.
As long as you do your research before diving into an airdrop, there’s nothing to worry about. You can always end up with a small free bonus that will increase the number of tokens in your wallet without any effort on your part.