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What is a crypto airdrop?

A crypto airdrop is the distribution of a project’s newly issued crypto tokens directly to the user’s crypto wallet address. Hence, an airdrop is an alternative method of issuing crypto tokens. Instead of an Initial Coin Offering (ICO), where users buy crypto tokens with another coin like BTC or ETH, the tokens are issued “out of thin air” directly to the user’s wallets.

Usually, a crypto project choosing a crypto airdrop as a method of token distribution already has a working product/service/platform and an existing user base of pioneers and early adopters. Thus, by distributing the newly issued tokens directly to existing users, it rewards their prior activity, engagement, input and marketing activity and strengthens the existing ecosystem. Overall, this helps to spread adoption and awareness of the crypto project and its token.

Often, crypto projects holding an ICO reserve a part of the issued tokens for “airdrops and bounty campaigns”, meaning that these tokens will be issued in airdrops to users who help in the marketing efforts of the project or complete other milestones and activities incentivized by the project team.

How does crypto airdrop work?

A crypto airdrop starts with a crypto-project’s team deciding that they want to use this method of token issuance and distribution. In the next step, they will determine what crypto wallets are eligible to receive tokens in the crypto airdrop. For example, this could include all of the crypto wallets that have previously interacted with the crypto project’s smart contract, hence all prior service users (the owners of respective wallets).

Then, the token generation event for the project follows. The team has two options: Either they actively distribute the token to all of the eligible wallets or – which is usually the case – they will issue an airdrop announcement on their platform and require all eligible wallet owners to claim their tokens on the project’s website. The latter method is generally preferred as it ensures that tokens are only distributed to those users who are still actively engaged with the project and its community.

Users who want to participate in an upcoming airdrop therefore should use the following steps:

Determine a crypto project which they believe is going to issue tokens through an airdrop soon.

Connect their decentralized wallet to the project’s platform and make use of some or all of the offered services.

Stay up to date on the project by subscribing to their Twitter handle and becoming part of the Telegram group or Discord channel.

If eligible, claim their awarded tokens on the project’s website upon the airdrop announcement.

What should I be aware of?

Security risks and scams continue – as they unfortunately do in some areas of crypto. Unfortunately, unscrupulous hackers and scammers have come up with creative and malicious ways of using seeming airdrops to try to gain access to a user’s wallet keys and thereby steal their wallet funds.

There are two common scams in which this happens:

The first are fake airdrops where hackers launch a website that claims to be a crypto project’s airdrop. This has recently e.g. happened for decentralized wallet provider MetaMask, where a fake MetaMask airdrop was announced. The scammers create a fake website, urging users to connect their decentralized wallet to “claim their eligible token amount”. In reality, they will grant permission to a malicious smart contract that will drain and steal funds from their wallet.

The second scam starts with the distribution of a worthless token to many users’ wallet address and then mentioning a website in the token description. This description mentions a website link where users should go to claim more tokens to which they are allegedly eligible. In reality, users are directed to a scam website and enticed to grant permission to a smart contract that will drain their crypto wallet of some or all of its funds.

Hence, basic rules are:

Only interact with and deal with tokens of crypto projects’ which services you have interacted with in the past.

If you receive an unknown token in your crypto wallet through random airdrop, simply ignore it. Don’t pay attention and don’t – EVER – visit a mentioned website of that “project”.

Take all airdrops with a grain of salt. Before connecting your wallet with a smart contract to claim your tokens, make sure that you have the real, legit website.

#crypto2023 #crypto #cryptocurrency #airdop

Disclaimer: This is not a financial advice. This is not a recommendation to buy, sell, or participate in the associated network. We would like to encourage you to do your own research and invest at your own risk.

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Sometimes ago, I made a post concerning the ATH airdrop, but many people are fading this. Recently they added a GAMING SECTION to their mining app which caused an increase in the number of users just in the first day of adding the Gamefi section. In 2023, we saw a large number of support given to GAMEFI projects and 2024 will not be an exception.
The mainnet will launch at the second quarter of 2024, so there is still an ample amount of time to earn from this airdrop.
I will add the link to the previous article so that you may read more about the Network so as not to miss this great opportunity.

Click on the settings button on the app to complete your KYC so you can convert your mined GEMs to ATH.
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