Airdrops are generally promoted on the company's website, social media, and cryptocurrency forums. Coins or tokens are sent only to specific wallets based on the blockchain network or coins held in existing wallets.

To qualify for the free gift, a recipient may need to hold a minimum quantity of the crypto coins in their wallet. Alternatively, they may need to perform a certain task, such as posting about the currency on a social media forum, connecting with a particular member of the blockchain project, or writing a blog post.

Cryptocurrency airdrops are aptly named in reference to physical airdrops using aircraft. Airdrops using aircraft entail the delivery of resources (such as weapons, food, or medicine) that physically drop out of the sky.

Types of Crypto Airdrops

Standard Airdrop

In a standard crypto airdrop, participants interested in receiving an airdrop simply express their interest in order to receive the airdrop. The individual must provide a valid wallet address, and some airdrops require no additional information beyond this.

Crypto AirdropsProsRewards early adopters or people engaged with a project with a stake in the projectRaises awareness of a project due to the marketing aspect of an airdropEncourages the use and adoption of a newly issued tokenMay distribute tokens across holders in a manner that would not have naturally happened in an open marketConsMay pose security threats if wallet holders must connect wallets to suspicious sites to claim airdropMay prove to be "pump-and-dump" schemesMay dissuade some investors from participating if they prefer different ways of distributing tokensMay prove to be worthless if the token does not have liquidity on an exchange.