Don't blindly trust airdrop influencers anymore. Besides gas fees, what other risks should you be cautious of when participating in airdrops?
1. Staking Airdrops
Staking airdrops are actually one of the most common types of airdrops we see. Usually, the project team rewards users who provide locked assets.
Take the recent Zircuit staking event on Binance's web wallet as an example; the reward here is $500,000 divided by the number of participants.
Risk Warning: Besides the obvious high gas fees, the drop in $ETH 📉 is also an important factor. Currently, we are at a time when the results of the U.S. election are about to be announced.
Risk assets in the cryptocurrency market may face high volatility due to the election, which is why Wall Street big shots are cautious at this stage.
If ETH drops 20% during this volatility, we are likely to face a reverse pull.
2. DeFi Airdrops
Commonly used swaps, cross-chain bridges, liquidity staking, as well as many lending products, are all DeFi airdrops; here, DeFi rewards are often given for providing liquidity in exchange for interest rewards and airdrops.
Not long ago, the total TVL of the RDNT project was only $70 million, but it was hacked, losing $50 million. Moreover, many project teams' Twitter accounts have been hacked, spreading fake links, leading many users to fall victim to scams.
Risk Warning: High volatility may face liquidation risks. For example, in lending DeFi, there is always a healthy ratio; exceeding it may result in liquidation.
So what airdrops are you currently participating in? Have you encountered any pitfalls during airdrops? Feel free to share your experiences in the comments, DYOR