What is Airdrop? Why do projects airdrop to users? How many forms of Airdrop coins are there? How to find airdrops effectively? Let’s find out with Betomon in this article!
What is Airdrop?
Airdrop in crypto is a project that gives users access to coins or tokens, generally for free. It is recognized as an advantageous method for promoting the project since it plays an important role in raising awareness and community interest in their coin/token.
In the cryptocurrency industry, an airdrop is a method of distributing customers free coins or tokens.
Why do projects airdrop to users?
In the cryptocurrency market, a project’s development greatly depends on the community. In order to show their gratitude to the community, they frequently announce airdrops to early users.
Consequently, the projects implementing airdrop aim to:
- Project promotion: Following the announcement of the airdrop, users will start to learn about the project, engage in the platform, and share details with others.
- Build community and interaction: Airdrop participants often have to use project supplies or complete specific tasks.
- Increase dispersion: Through the use of airdrops, projects can circulate their coins/tokens to a large number of individuals, raising dispersion and reducing focus on any organization, individual or investor.
Advantages and disadvantages of airdrop hunting in crypto
Benefits
Crypto users might gain many benefits from airdrop hunting as follows:
- Opportunities to receive free coin/token: Users may be rewarded free tokens allowing them to take advantage and diversify their investment portfolio without spending a lot of money.
- Opportunities to improve crypto knowledge: Research is an essential stage in the airdrop development process providing users opportunities to discover multiple projects with different technologies and use cases.
- Opportunities to connecting with the community: Several airdrops require joining in and interacting with other participants in the community.
- Potential profits: A number of tokens that are airdropped from high-quality projects might experience a value increase in the future, bringing airdrop hunters significant advantages.
- Receive the numerous advantages that tokens offer: Tokens that are airdropped may be used for a wide range of purposes such as providing service usage rights, discounts and participating in governance… to optimize user experience.
Drawbacks
Airdrop coins are considered a form of free, yet there are still several drawbacks including:
- Time: Users must spend a lot of time and effort in experiencing and checking features and products for certain airdrops.
- Transparency: Since there are no tools to track project activities and airdrop tokens are given away for free, there is a lack of transparency in the distribution of tokens and airdrop results.
- Scam: Scammers can steal personal information and assets by imitating projects, creating virtual projects, sending fake airdrop information and asking for wallet information (private key/passphrase).
Types of airdrops in cryptocurrency:
Airdropping can be carried out with a wide range of criteria and forms, such as:
There are several ways to conduct an airdrop:
Sign up for an account to receive airdrop
In order to get the airdrop in this most basic and simplest form, users only need to create an account on the platform without performing any other tasks or requirements.
However, since everyone can participate, the airdropped tokens will be given on a first-come, first-served basis. In comparison to other formats, this airdrop often has a lower value.
Airdrop Bounty
Airdrop Bounty is a bonus-based airdrop for users. This means the project will organize missions like bug-finding, attending art competitions, and creating project-related content…
To get prizes (which might include tokens or stablecoins like USDT, USDC…), participants are required to meet the project’s requirements and complete the assigned tasks.
Retroactive airdrop
Retroactive is a type of airdrop project for consumers who have previously supported, used, or contributed ideas to the product’s development. The project’s own tokens are frequently given to users as rewards for this type of airdrop.
Additionally, some popular retroactive trends include:
- Running nodes for blockchain projects.
- Perform dApp tasks such as filling out forms, participating in trading contests, answering inquiries,…
The objective of retroactive is to ensure that the token is distributed to the correct users. Because these tokens are primarily used for administration purposes, airdropping to actual users will increase their ability to hold and contribute to the project’s future development.
Airdrop for people who hold or stake coins/tokens
For this type of airdrop, the project will record the user’s wallet balance throughout a predefined time by taking a snapshot. An airdrop from the project will be sent to wallets that have staked or hold a specific quantity of tokens.
This token can be:
- Tokens of the Layer 1 blockchain network, which the project builds above or includes a large number of users. For example, Stellar airdrops 19% of the original XLM token supply to wallets holding Bitcoin.
- NFT of the project, for instance Yuga Labs airdrops 10,000 APE tokens to wallets holding BAYC and MAYC NFTs.
Hard Fork airdrop
The phrase “hard fork” refers to the splitting of a single blockchain into two separate ones. After the hard fork, the project will airdrop an amount of new version tokens with the equivalent value to the user’s old tokens.
Some typical hard fork events are:
- Bitcoin hard fork: Bitcoin blockchain split to create Bitcoin Cash (BCH) and Bitcoin Gold (BTG).
- Ethereum Shapella hard fork: The Ethereum blockchain conducted a hard fork event known as the “Ethereum Merge” with the token “ETHW” when it switched from a Proof-of-Work to a Proof-of-Stake consensus mechanism.
How to find airdrops?
Finding for airdrops often involves the following steps:
- Research and look forprojects that are likely to be airdropped.
- Prepare knowledge and materials needed to support the airdrop, such as the DeFi platform, X account (previously Twitter), Discord, Telegram, electronic wallet, coins/tokens on the network required by the project (if any),…
- Interactwith platforms, products, or perform project-related tasks.
- Follow the information and wait for the airdrop results.
4 main steps to find airdrops effectively:
Research and search
Looking for information regarding airdrop projects may be separated into two types based on the following criteria:
- The project confirms that it will perform the airdrop: This is the official announcement by the project that eligible consumers who meet one (or more) requirements will receive an airdrop. However, the airdrop value will be low because everyone can find and participate easily.
- Projects that have not yet confirmed information about airdrops: In this case, individuals seek projects (that have not yet released tokens) that they believe will carry out airdrops using their research abilities and knowledge. Finding projects to hunt for airdrops in this way is quite difficult, but the rewards for users will also be higher.
However, both types require users to Do Your Own Research (DYOR) to search for projects that will (or have the potential to) airdrop. The steps that follow can be taken to find potential airdrop opportunities:
- Follow organizations offering up-to-date airdrop information, such as Airdrop Alert, Airdrop Bob, Airdrops.io, DeFi Llama’s Airdrops page, CoinMarketCap…
- Engage in the airdrop hunting communityon social media platforms like Telegram, Twitter, Discord.
- Become a member of cryptocurrency forums such as Reddit and Bitcointalk, where users can discuss airdrops in special sections.
- Follow KOLs (influencers) in cryptosuch as founders, project advisors, and famous airdrop hunters as they frequently share information on airdrops and offer helpful and valuable insight about the project.
Prepare knowledge and materials
Users will prepare tools that correspond depending on the requirements of the project. Yet, users typically have to get ready beforehand:
- Cryptocurrency Wallet: Utilized for connecting and interacting with the platform. Additionally, this is where the project will check, record activities and send rewards to users if they win the airdrop.
- Network coin: used as gas fees when using the platform; it may be either testnet (ETH on Kovan, Rinkeby) or mainnet (BNB, ETH, SOL, etc.) currency.
- Knowledge about the project and how to use the platform:Users must have a basic understanding of the project’s operations (DEX, lending, staking, name service,…) as well as how to use and interact with the product…
- Follow information channels of the project: In order to be informed of updates and to get support in resolving questions or problems if you run into trouble during an airdrop.
Participants need to prepare cryptocurrency wallets, network coins and knowledge to perform airdrops
Use the platform and complete the missions
The next step is to sign up and start using the functions on the platform or conducting the required tasks.
Each airdrop has its own mission and set of regulations, please read the directions carefully and follow the principles to ensure:
- Provide full registration details, including your email account, Discors, X…
- Match all criteria and conditions to participate.
- Complete tasks correctly.
Follow the information and wait for the results
If the project has been confirmed to airdrop in advance, users only need to engage and wait until the results are released. If winning, users need to fully understand details about the time and method to claim the airdrop.
Experience in effective airdrop hunting
When hunting for airdrops, you need to filter and choose suitable projects. Below are some criteria for choosing good projects to do airdrop:
- Having large investment capital:This indicates that the project has potential for growth in the long term and is regarded as reliable by the cryptocurrency community.
- Raising a large amount of capital: It will enable the project to get important funding for its advancement. Furthermore, the possibility of an airdrop project will rise with the significant quantity of funds raised. For example, both Aptos and Arbitrum are projects that have raised hundreds of millions of dollars in capital and have had huge airdrops for users.
- Belonging to a new topic in the market: A project focusing on a fresh market niche needs to develop a marketing strategy to attract the public’s interest. Airdropping is among the most simple and efficient for your marketing methods.
- Confirming the airdrop for the community: Verifying the project’s airdrop will boost users’ confidence while taking part in the product experience and increase community awareness of the project.
Some tips to increase your airdrop winning rate
The terms of the project you are working on will determine how you can get the airdrop. However, the key factor a project needs is real users, so try to participate and interact with the project as enthusiastically as possible helping you enhance your airdrop rate. There are also other aspects to consider before participating in airdrop hunting for any project as follows:
- Don’t experience by halves: That means you participate but don’t give the project enough interaction. For example, in AMM projects, if you only swap a few symbolic commands, there is a high possibility that you won’t receive the airdrop. Let’s interact with the project regularly, rather than only for short periods.
- Prioritize the primary product of the project: Give priority to interacting with the Dapp and the project’s official product. Partner projects or spin-off products should only be undertaken for reference purposes.
- Always set a budget for airdrops: as they are not always free. Sometimes we have to pay a fee during the project experience process, particularly for mainnet projects. There have been several instances where participants paid a large sum of money but received no airdrop in return.
>>> Instruction for Sender airdrop hunting
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