Cryptocurrency Airdrop - a great marketing tool and a great way to get involved on the blockchain

What Is a Cryptocurrency Airdrop?

Simply put, a cryptocurrency airdrop is when you send someone, a wallet owner, a token (like an NFT) without a financial transaction. The token is being “dropped” into the wallet. This is mainly useful from a marketing perspective as it can draw in new users and create a buzz around a new NFT project. Brands and businesses that want to grow their projects can use an airdrop in order to gain a bigger following. But airdropped tokens can also serve many other utilities, such as governance, where token holders are allowed to have a say in governance decisions related to the underlying project. 

How do I participate in crypto airdrops?

In order to participate in a crypto airdrop, it is important that you inform yourself which airdrops are about to take place (can be done by joining groups of interest on social media platforms, such as Twitter or Discord). Then there are a few things to keep in mind. Most importantly, is eligibility which means the criteria for the airdrop, for example, having a specific type of wallet. Once you’ve confirmed you have a compatible wallet, you will need to connect your wallet to the platform on which the airdrop is taking place. To claim your airdrop, you will need to follow a few simple steps, and then you can check your wallet to confirm that you have indeed received the airdrop. 

Examples of crypto and NFT airdrops  

There have been many crypto airdrops over time, so there are countless examples you can search online. Let’s take a look at a few here and some NFT airdrops for context as to what it can bring you as a holder and what forms of offerings were made. 

• Uniswap launched an airdrop of its governance token UNI,  in September 2020, to users who had interacted with the platform before September 1, 2020. The airdrop gave 400 UNI tokens to each user who met the eligibility criteria.
• Avalanche conducted an airdrop of its native token AVAX, in July 2020, to users who had completed certain tasks, such as following the project on social media, joining its Telegram group, and submitting a form. The airdrop distributed a total of 10,000,000 AVAX tokens.
• In October 2020, Filecoin conducted an airdrop of its native token FIL to users who had participated in the project's initial coin offering (ICO) in 2017. The airdrop gave out 25% of the total FIL tokens allocated to the ICO participants.
• NBA Top Shot is a blockchain-based platform for buying, selling, and trading officially licensed NBA NFTs. The platform has conducted a number of airdrops of rare and highly sought-after NFTs to users who have completed certain tasks, such as referring new users to the platform, participating in community events, or completing surveys.
• Bored Ape Yacht Club (BAYC) holders were exclusively eligible to receive an airdrop of their second project called “Mutant Ape Yacht Club”. As of November 2022, this free airdrop to Bored Ape holders is worth around $15,000.

Crypto Airdrop Process

Let’s think about what goals are involved in a business deciding on creating an airdrop. Maybe in response to market strategies, a hard fork in the network, or to incentivize existing investors. First, as a company, you need to decide on the type of airdrop you want to send out and who will be eligible to receive it. Next, you will need to spread the word about your airdrop, through some sort of campaign. After the recipients of the airdrop are chosen, the airdrop is typically carried out with the assistance of smart contracts. The company may opt to utilize its treasury wallet to perform the airdrop and frequently makes the transaction block publicly accessible to showcase the fairness of the airdrop. The transaction will reflect the airdrop being sent out from the company's wallet and distributed to the recipients.

Are crypto airdrops safe?

There are some risks involved if one is unaware of the possibilities of the following issues:

-Private Key theft: your private key is your identity for your wallet. You must use your private key to access the airdrop in your wallet, so be aware never to disclose it to anyone. 

-Data Theft: Hackers may try to tempt you with a free crypto airdrop, and in fact, the link they send is malicious, and they can then have access to your social media accounts and possibly some passwords.

-Referral Links: Scammers could try to use this marketing technique to collect your info with the promise of crypto airdrops. 

Final words

Each airdrop has a specific objective to build a stronger community around certain NFTs, create buzz, or reward NFT holders. Airdrops can benefit you as a holder of specific crypto or token. However, it is important to check and review the official details of the airdrop so you will be less exposed to any risks or potential scams.