Crypto airdrops are a popular method for web3 projects to distribute tokens and build momentum for their platforms, especially for startups. Crypto airdrops are also one of the most popular marketing strategies among users. Through careful research and smart participation, users can get to know the latest and best projects through airdrops at the first time, while also getting good financial benefits. In this article, veDAO will analyze crypto airdrops in depth, including its definition, history, process and classification, and provide experience and precautions for safe participation in airdrops. Finally, veDAO recommends the 6 most worthwhile airdrop opportunities in the near future.
1. Airdrop Definition
Airdrop refers to the act of sending free crypto tokens to a specific digital wallet address in the blockchain field. In other words, airdrop is an act of giving crypto assets to users by the project party. For the project party, crypto airdrop is a marketing strategy aimed at promoting new projects and their crypto tokens, raising awareness of the project, and promoting adoption. For users, crypto airdrop tokens are sent for free, but sometimes they may be asked to complete specific tasks, and they can get good financial benefits by participating in crypto airdrops. Crypto airdrops are not limited to new crypto projects, mature web3 projects can also use this strategy to improve the distribution of tokens and reward loyal community members.
2. Airdrop History
Airdrop is a long-standing culture in the cryptocurrency circle. The earliest cryptocurrency airdrop took place in June 2010. Gavin Andresen, a software engineer who had co-developed the Bitcoin system with Satoshi Nakamoto, set up a website called Free Bitcoins. Users only need to post their Bitcoin payment address on the website to receive 5 Bitcoins. At that time, the value was only 1 cent (about 0.3 Taiwan dollars). It is generally believed that crypto airdrops really became an important means of operation for project parties starting in 2014. To understand the nature of crypto airdrops, you must have a clear understanding of its evolution history.
2014: The first crypto airdrop was launched by a project called "Auroracoin". It distributed free tokens to all citizens of Iceland as a strategy to promote the adoption of new crypto tokens. However, both the project and the token failed. There was no interaction or other requirements for the airdrop at this time, just confirming community membership.
2017: With the ICO boom, airdrops became more and more popular, and a large number of new web3 projects began to use airdrops as a way to attract potential investors and users. Electroneum was one of the projects that successfully used the airdrop strategy during this period. It airdropped more than 5,000 tokens to users for free. It was very successful. In the first two weeks of the event, more than 120,000 users downloaded the application and created accounts.
2018-2019: Crypto airdrops start to become more sophisticated and targeted, with projects using them to reward early adopters, community members, and loyal users. One of the big projects that has done a great job of building a strong community through airdrops is Steemit, which distributes tokens called “Steem” to users based on their engagement on the platform.
2020: The rise of DeFi has brought about a new form of airdrops, where web3 projects distribute tokens to liquidity providers or users who participate in liquidity mining activities. The famous Dex project Uniswap airdropped UNI in September 2020. This is one of the largest and most well-known airdrops in crypto history, and has spawned countless imitators.
In 2020, crypto airdrops also began to be used as a way to distribute tokens in a fair and transparent manner, through mechanisms such as "snapshot" airdrops that reward users based on their previous interactions or other levels of participation. The DeFi project 1INCH was one of the first projects to try to use snapshot airdrops to fairly distribute tokens.
2021: Regulatory policy around airdrops begins to become clearer, with some jurisdictions requiring airdrops to be registered as securities offerings.
2022: More and more projects are choosing airdrops. BAYC's Apecoin airdrop to its NFT holders, the Optimism project's OP token airdrop, and Apto's airdrop to its early adopters are all influential airdrop activities this year. In 2022, the requirements for airdrops are getting higher and higher. Witch checks are starting to be used for screening. Airdrops are becoming multi-dimensional, and multiple requirements are required to obtain airdrops.
2023: Currently, airdrops are one of the most important components of the crypto market. This year, the number of airdrops and the number of airdrops have experienced a huge increase. The Arbitrum airdrop, which received more than 42 million ARBs in the first hour, was the most sensational airdrop this year.
Summary: Crypto airdrops have been constantly evolving and have become an important part of the crypto market. According to the difficulty of participating in airdrops, airdrops can be divided into the following stages in history: confirming that you are a community member, simple registration or 0 transfer, simple interaction, screening by witches, and heavy participation of users, with multiple dimensions as airdrop conditions.
3. Airdrop Process
As a marketing tool, each specific project will choose different types of crypto airdrops according to its specific needs, and the working mode of each type of airdrop is also different.
The general airdrop process can be divided into:
The team behind the project decides on the number of tokens to be airdropped to users. The next step is to select the target audience and platforms they will use to distribute the tokens, while also setting eligibility requirements for users to receive the airdropped tokens.
Users can select a high-quality web3 project of their interest from the ongoing airdrop projects.
Generally, airdrops require users to meet specific requirements to be eligible for free tokens. These requirements may include following the project on social media, sharing posts, joining discord/Telegram groups, filling out questionnaires, and interacting with the project tasks. Some projects require users to complete (KYC) verification to participate, while others only require users to register. The requirements for crypto airdrops vary depending on the preferences of the project, and the main purpose is to get as much publicity and adoption as possible for the project or new token.
After meeting the requirements, the user submits the details to register for the airdrop.
After registration is completed, users need to wait for tokens to be distributed.
Projects generally execute airdrops through smart contracts, and tokens are automatically distributed to user wallets.
After the tokens are distributed, users will receive them in their wallets. After receiving the tokens, users can choose to continue holding the tokens or trade them on crypto exchanges.
4. Airdrop Types
Each airdrop type has unique characteristics and purposes, and we need to understand the different types of crypto airdrops. The following are the popular types of cryptocurrency airdrops.
Airdrop for holders
Holder airdrops distribute tokens for free to people who hold a certain amount of digital currency in their wallets. The project team usually takes a snapshot of the user's cryptocurrency holdings at a specific date and time. If the wallet balance reaches the minimum requirement, the recipient will receive free tokens based on the amount held at the time of the snapshot.
Many new projects airdrop tokens to wallet holders of Bitcoin (BTC), Ethereum (ETH), or other successful tokens because they have the largest communities in the space.
Standard Airdrop
The most original airdrop method, users only need to register the relevant wallet or contract to get free airdrops. No other information is required. The airdrop is quick and easy, but the project developers set a limit on the number of tokens each user can get. They follow the principle of first come first served.
Bounty Airdrop
Bounty airdrops are usually pre-announced requirements for airdrops, requiring users to participate in promotional activities. Bounty airdrops require users to complete certain tasks, such as sharing a post about the project on Twitter, joining the project's official Telegram, or creating a post on Instagram and tagging several friends. To receive a bounty airdrop, users need to fill out a form with wallet address information and provide proof of completion of the task.
Exclusive Airdrop
Exclusive airdrops are limited to sending cryptocurrency to designated wallets. Generally speaking, the recipients of airdropped tokens have had contact with the project and are either active community members or early supporters of the project. These airdrops are often used as a way to reward loyal users and build a strong community around the project. In September 2020, the decentralized exchange (DEX) Uniswap airdropped 400 UNI to all wallets that had interacted with the platform protocol before a certain date. Users who hold governance tokens will have the right to vote on future decisions related to the development of the project.
Faucet Airdrop
Faucet airdrops are the distribution of small amounts of tokens to participants on a regular basis (usually daily or weekly). These airdrops are usually of small value and are designed to encourage users to interact with the project on a regular basis.
Hard Fork Airdrop
This one is a little different. When a coin hard forks from its original blockchain, a new token is created, and those who hold the original token will receive an equal amount of the new token in their wallet. The most famous example is the Bitcoin Cash (BCH) hard fork that occurred in 2017: Bitcoin users who held BTC automatically received an equal amount of BCH.
Summarize
Cryptocurrency airdrops can be simply divided into two categories based on the timing of the announcement of eligibility: pre-announcement and post-recognition. Bounty airdrops and faucet airdrops are mostly pre-announcement, while other types of airdrops are mostly post-recognition, or pre-announcement. Project owners will choose the type of cryptocurrency airdrop to be executed based on their motivations and customer acquisition plans.
5. Experience and precautions
When participating in cryptocurrency airdrop activities, the following points are some of the airdrop experiences and precautions summarized and sorted out by veDAO, which users can use as a reference when participating in airdrop activities:
Do your research: Before choosing to participate in an airdrop, do sufficient research on the chosen project and its team.
Don’t think of airdrops as investments: It is recommended to think of airdrops as dividends rather than a primary investment strategy.
Use separate email addresses and wallet addresses: It helps users protect their personal information from being shared.
Pay close attention to the project: Airdrops are usually time-limited, and users need to complete tasks or submit wallet addresses within the specified time. If you miss the deadline, you will not be able to get the tokens. Keeping up to date with the latest project developments and information can also help users avoid all possible scams.
Please be patient: airdrop distribution may take time and may be delayed due to various factors.
Beware of scams: Airdrop scams are common, so users should not participate in airdrop activities of unreliable projects and should not disclose your private keys or personal information. The myEtherWallet phishing scam is a recent scam that has had a great impact. The scammers created a fake website and promoted a fake airdrop, requiring users to enter their private keys to receive tokens.
Specialized airdrop tools: airdrops.io, dropsearn.com/airdrops/, defillama.com/airdrops, 99airdrops.com, alphadrops.net/alpha, etc. are all good airdrop tools
6. Recommended opportunities for free play
After a lot of screening and research, veDAO will help you sort out 6 potential projects that may or will soon airdrop in the near future that are worth participating in.
LayerZero
LayerZero (ZRO) is a full-chain interoperability protocol. It is capable of providing real and guaranteed messaging through configurable trustlessness. It currently runs on most major blockchains, including Ethereum, Avalanche, Polygon, BNB Chain, Aptos, Fantom, Arbitrum, and Optimism. LayerZero has not yet launched its token, but the team mentions the ZRO token in its documentation. However, it is expected that the project will airdrop the token to their dApp users.
Here are some suggestions for participating in any potential airdrops:
Staking STG and voting on Stargate Finance
Using Stargate, USDC, Aptos, and LiquidSwap bridges
Cross-chain swaps using SushiSwap
Using Bitcoin Bridge
Interacting with other dApps on LayerZero
Obtaining a role in the Stargate Guild
It is important to note that there has been no official announcement from the LayerZero team regarding the airdrop, so any suggested ways to participate are just speculation.
zkSync
zkSync is a ZK Rollup that provides scalable and low-cost transactions on the Ethereum blockchain. This is done by submitting a proof of validity along with the bundled transaction to an Ethereum smart contract. zkSync Era Mainnet Alpha is now open to the public. The team said they will launch a native token in the future, which gives people hope that some tokens can be airdropped by then. Supposedly, to qualify for the zkSync airdrop, users should:
Add zkSync Era Alpha mainnet on MetaMask
Interacting with zkSync Lite and zkSync Era Mainnet Alpha
Complete tasks on zkSync’s Crew3
Interact with the zkSync ecosystem, such as Orbiter Finance or ZigZag.
This is important to note because some zkSync dApps may not have launched their tokens yet. This gives you a chance to double the airdrop.
StarkNet
StarkNet is a decentralized Validity-Rollup (or "ZK-Rollup") running on top of Ethereum, providing unlimited computing power to decentralized applications without sacrificing security or compatibility. It leverages STARK, a secure and scalable cryptographic proof system, to ensure that transactions are safe and reliable. StarkNet is permissionless, meaning that anyone can use it without third-party approval. StarkNet's alpha v0.11.0 has just been launched on Testnet, and a mainnet upgrade is expected soon.
The best way to get potential StarkNet's STRK token airdrops is to interact with their testnet. Also, there are some protocols on StarkNet that don't have tokens yet. So using their DApps can also get you access to their airdrops, giving you double the rewards.
Polygon zkEVM
Polygon zkEVM (MATIC) is a layer 2 scaling solution for Ethereum that leverages the scaling power of zero-knowledge proofs while maintaining Ethereum compatibility. Polygon co-founder Sandeep Nailwal has strongly hinted on Twitter that a huge MATIC airdrop will be available for zkEVM users. The best way to get access to the potential airdrop is to interact with the Polygon zkEVM mainnet. To do this, add Polygon zkEVM to MetaMask. Then, connect to Polygon zkEVM through the native bridge or a third-party bridge such as Orbiter Finance. Finally, interact with QuickSwap, which is currently the only active dApp deployed on Polygon zkEVM.
Vela Exchange Airdrop
Vela Exchange is a decentralized perpetual contract platform that aims to improve the trading speed and security of DeFi derivatives using a hybrid model of off-chain order books and on-chain settlement. According to the official documentation, Vela users can open positions based on the performance of synthetic assets with up to 100x leverage. Vela will conduct airdrops and mainnet launch on June 26, 2023. The project's official Twitter has hinted that users maximizing trading volume is the key to getting the biggest airdrops. In addition, participating in their flash trading competition will not only give you a chance to win their prizes, but also provide you with more airdrop tokens. The first competition ended with a prize pool of $10,000 USDC and $2000 eVELA rewards. Vela will host a second flash competition, which will be adjusted to support traders of all sizes. However, the main event will be their Grand Beta Trading Competition, where Vela promises to offer big prizes.
Blur NFT Marketplace
Blur (BLUR) Season 1 airdrop ended on February 14, 2023. Blur announced that they will airdrop over $300 million of BLUR in Season 2, which was originally scheduled for April 2023 but has been postponed.
To participate in Blur's airdrop season 2, users can connect their wallets to Blur's platform and bid for NFP. Blur has confirmed that it will distribute more than $300 million in tokens in the second quarter. The airdrop is conducted on a point-based system. The system rewards bids for NFT collections based on 24-hour trading volume. Participants can also maximize their BLUR token airdrops by earning more points through loyalty. For Season 2, Blur also launched Blend (short for Blur Lending). Blend is a peer-to-peer perpetual lending protocol for NFTs that allows NFT holders to borrow ETH against their NFTs without having to sell them. With the launch of Blend, the Blur team also introduced lending points, doubling the lending points for certain NFT collections. The devaluation of points caused by Blur's delay has led to widespread dissatisfaction in the community, and with the decline in token prices, the profits from participating in the second season interaction may not meet expectations.
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