The rapid increase in new cryptocurrency projects is posing a challenge in terms of user access to new projects. Therefore, some projects choose to distribute airdrops to users as a way to market and increase awareness. Although the number of airdrops is very large, not all users receive rewards. So let's find out what cryptocurrency airdrops are and how to receive them.

What is a cryptocurrency airdrop?


#Airdrop‬ A cryptocurrency is a donation of digital assets from a cryptocurrency project to its users. The idea is to distribute tokens to current or potential users to raise awareness about the project. These tokens are given out for free, but some airdrops require users to perform certain tasks before receiving rewards.

How does Airdrop happen?

There are many different types of airdrops, but they generally involve sending a small amount of cryptocurrency to some wallet (usually on Ethereum or Binance Smart Chain). Although less common, there are also projects that give away NFTs instead of cryptocurrencies.

Some projects will make distributions without asking for anything, while others will require you to do some tasks before being able to receive rewards. These tasks often include following social media accounts, subscribing to newsletters, or keeping a minimum amount of coins in your wallet. However, you are not always guaranteed to receive airdrop tokens.

In some cases, airdrops only award tokens to wallets that have interacted with the project's platform before a certain date. 1INCH and Uniswap are popular examples that have used this approach to support early adopters. But unlike regular airdrops, these airdrops are worth thousands of dollars.

Why do projects do airdrops?

Blockchain projects give away free tokens in an attempt to gain widespread adoption and accelerate the growth of their networks. A higher number of token holders is often seen as a positive metric, which also makes the project better at decentralizing token ownership. Airdrops also motivate recipients to use and promote the project. This can help build an initial user base before the project is listed on exchanges.

Airdrop classification

There are many different ways to conduct airdrops. The standard airdrop is simply a donation of cryptocurrency to a number of wallets, but we still have some other types. The most popular are bonus airdrops, exclusive airdrops, and airdrops for holders.

Airdrop bonus

This is an airdrop as a form of bonus. To participate, users must complete certain tasks, such as sharing a post about the project on Twitter, joining the project's official Telegram, or creating a post and tagging a few friends on Instagram . To receive tokens from the bounty airdrop, you may be asked to fill out a form with your wallet address and provide proof that you completed the task.

Exclusive airdrop

This is a form of airdrop that only sends cryptocurrency to pre-specified wallets. Typically, the recipient is someone who has been involved in supporting the project from the beginning, such as being an active member of the community or an early supporter of the project.

In September 2020, Uniswap gave out 400 UNI to each wallet that interacted with their protocol before a specific date. Governance tokens provide holders with voting rights on decisions related to the future development of the project.

Airdrop to holders

Holder airdrops are the distribution of free tokens to people who already have a certain amount of cryptocurrency in their wallets. The project team typically takes a snapshot of users' cryptocurrency holdings at a specific date and time. If the wallet balance meets the minimum requirement, the recipient can receive free tokens according to the amount they held at the time of the snapshot.

Many new projects distribute tokens to holders of bitcoin (BTC), ether (ETH) or BSC wallets, as they have the largest community in this field. For example, Stellar Lumens (XLM) airdropped 3 billion XLM to BTC holders in 2016, and this airdrop was exclusive to users in the Bitcoin network.

How to participate in the airdrop?

You will need a cryptocurrency wallet to be able to participate in airdrops. You can choose one of the following wallets: Metamask, trust wallet, Solana Wallet, Binance Web3 Wallet. As mentioned above, you do not always receive rewards when participating in airdrops. In addition, you also need to research and check carefully before participating in any airdrop. Please carefully check the safety of the airdrop before participating.

However, there will be a place where you can participate in airdrops and will definitely receive rewards from the airdrop, which is #MegaDrops of Binance. You just need to complete the required tasks and you will definitely receive rewards from the project. You can join at This Please.

summary

Recently we learned together about airdrop, an effective marketing method for new projects that want to reach users. Hope you have a clear understanding of the concept and how to participate in an airdrop. Wish you good luck and make money from the market. #AirdropGuide