Key take aways:
- Crypto airdrops, in which users are given free tokens, are similar to unexpected presents. Similar to free samples in a store, new blockchain projects frequently distribute them to advertise their coins.
- Users may need to join a community or follow a project on social media in order to take part in an airdrop. The project team sets the guidelines, and smart contracts are usually used to automatically distribute tokens straight to users’ wallets.
- Airdrops come in various forms. Holder airdrops compensate current tokenholders, bounty airdrops require task completion, and standard airdrops require a wallet address.
Types of crypto airdrops:
- Standard Airdrop: To be eligible to receive an airdrop, participants must only indicate their interest. The person only needs to supply a working wallet address; some airdrops don’t need any more details.
- Bounty Airdrop: Users who complete specific tasks will receive a bounty cryptocurrency airdrop. These duties frequently involve spreading the word about a project via a variety of platforms.
- Holder Airdrop: To be eligible for the tokens, participants in this kind of airdrop must have a specific quantity of the current coins or tokens in their wallets. The quantity and length of time spent holding the current coins or tokens may affect how many tokens are obtained.
- Exclusive Airdrop: To obtain the tokens in this kind of airdrop, participants must be chosen or invited by the project team or partners. Reputation, influence, knowledge, contribution, and so forth could be the basis for the selection criteria.
How crypto airdrops work?
As part of its marketing strategy, a project usually offers to send free tokens to your wallet address at the start of a crypto airdrop. Here is a general overview of how cryptocurrency airdrops operate, although the project team will decide the eligibility requirements and the specifics of how it will be carried out:
- Announcement:
The project team uses its website, social media accounts, and forums to share details about the impending airdrop event and the requirements for participation. The group gathers the applicants’ wallet addresses. - Eligibility:
In order to be eligible for the airdrop, users may need to meet certain requirements. These prerequisites could be having a minimum amount of another cryptocurrency in their wallets, sharing content, joining a Telegram group, or keeping up with the project on social media. - Snapshot:
To find eligible wallet addresses, the project takes a blockchain snapshot at a specified time and date. This makes it easier to determine who qualifies. - Distribution:
The project sends the tokens straight to the wallet addresses that were recorded using smart contracts. Usually, the distribution is free and automatic. To show that the token distribution was done impartially, projects usually send the airdrop using their treasury wallet and make the transaction block public. - Token receipt:
Airdrop recipients frequently receive tokens at their wallet address without having to claim them. - Usage:
Users can hold, exchange, or use the tokens to add value and support the project’s ecosystem after obtaining them.
