Cryptocurrency Airdrop - everything you need to know

For several years in a row and to this day, the sphere of airdrops is actively developing, there are more and more fundamental projects and other platforms that are ready to reward crypto-enthusiasts for their active participation in various campaigns. Airdrop is a distribution of tokens among users, organized by developers of blockchain projects, CEX and DEX exchanges, Web3 games and wallets. Often such promotions are held to attract attention to new projects, increase the audience and interest in their tokens, and as a reward for contributing to the development of the project and community.

What is Airdrop in crypto?

Airdrop (airdrop) in cryptocurrency is a way of distributing tokens to users for their certain actions. It is held in order to create an initial demand for the token, increase the recognition of the project, encourage users who take part in its activities. In most cases, participation in free activities requires simple actions: subscription to social networks, reposts, registration on the platform. In order to get airdrop in activities that require the expenditure of resources, developers put forward a different set of criteria - the number of transactions in a certain network, the amount of funds stored in the account, the amount of burned commission in blockchains and much more.

Types of Airdrop

There are several types of airdrops:

- Standard Airdrop (community airdrop)- participants receive tokens for completing tasks that do not require/require investment.

- Bounty-airdrop - users get rewarded for more complex tasks, for example, for writing articles, content creation, ambassadors program, social networks moderation.

- Hold-airdrop - tokens are distributed to those who hold a certain cryptocurrency in their wallet/account.

- Exchanges-airdrop - distribution of tokens to users who trade on a particular cryptocurrency exchange, use its services, accumulate trading turnover on futures/spot instruments.

What are airdrops for?

Airdrops are mainly held to attract attention to new cryptocurrency projects and increase their popularity for potential users and investors. Giving away tokens for free allows you to quickly expand the audience and create initial interest in the project. The main goals of airdrops are:

1. Marketing and attracting users - free tokens encourage people to learn about the project, which increases its visibility and attracts new users.

2. Creating liquidity and initial demand - by giving away tokens, projects create a basis for their trading on exchanges, which increases interest in the cryptocurrency and gives it more value at the initial stage.

3. Formation of a loyal community - airdrop participants often become part of the project's community, which helps to maintain its popularity and development in the future.

4. Rewarding active users - some airdrops are held for existing users to reward their loyalty and stimulate further activity. 

Thus, airdrops are an effective way to promote a project and build a strong community around it.

How to find the nearest airdrop?

To find relevant Airdrop, you can use specialized sites and aggregators. Popular resources such as Airdrop Alert, AirdropKing or CoinMarketCap regularly publish a list of current and upcoming airdrops. Announcements can also be found on social networks and official websites of crypto projects. For your own reserch of the team, developers and project activities in general, Twitter (X) is best, as the vast majority of project funders in the cryptocurrency industry are located abroad and prefer to actively maintain this social network, often it is the primary source.

Fraudulent airdrops - how to avoid?

Unfortunately, there are fraudulent schemes in the airdrop niche. To avoid losing money, time and effort it is important to:

- Do not provide data from your wallets and do not connect them to unverified sites without a preliminary security check.

- Avoid dubious links and applications.

- Check the project on reliable crypto sites and read reviews about it.

- Give preference to well-known platforms and airdrop aggregators.

- Get information only on official social networks.

- Conduct your own reserch, and do not make do with just mindlessly following the actions that the influencer highlights, as the latter may be part of a fraudulent scheme.

Frequently asked questions

1. How do crypto projects benefit from conducting an airdrop?  

Airdrop helps projects attract users' attention, build community and increase visibility. It is an effective marketing method that stimulates interest in tokens, creates liquidity and fuels demand in the initial stages. Thanks to airdrop, projects can also reward those who support their development.

2. How does airdrop differ from other ways of promoting cryptocurrency projects?  

Unlike advertising campaigns or listing on exchanges, airdrop attracts users through direct rewards, i.e. giving away tokens, not just promises of future benefits. Airdrop encourages people to take direct actions, such as subscriptions, reposts, inviting friends, which increases engagement and can lead to a more loyal community.

3. How long does a typical airdrop last and what happens to the tokens after it is completed? 

The duration of an airdrop varies, but it's usually a few weeks or months, less often over a year. Once completed, tokens begin trading on exchanges, which creates liquidity for early participants and helps shape the market price of the token. Participants can hold the tokens or sell them, which affects market demand.

4. Why do some airdrop require participants to hold tokens or have a certain balance?  

Such conditions help attract interested users who are willing to support the project in the long term. The requirement to hold tokens or have a balance can prevent casual users or abusers from participating, making the audience more valuable to the project and contributing to token rate stability.

5. What role does the community play in the success of airdrop?  

The community plays a key role - active participants help spread information about the project, share their experience, create content and hold (hold) token on exchanges. An effective airdrop can attract long-term investors and users who will help the project grow, develop and become more popular in the cryptocurrency sphere.