summary

Crypto airdrops are a marketing strategy used by crypto startups to promote projects and their new tokens, mainly by issuing the project’s native cryptocurrency to existing or potential users for free. Some airdrops require users to complete simple promotional activities, such as social media accounts and sharing posts.

Airdrop types vary, and each project has its own requirements. But most of the airdrops have one goal, which is to increase general awareness and interest in the project. Some are directly deposited into the user’s wallet, while others require the user to manually claim them.

All users with crypto money packages can receive or receive the airdrop, but must always be careful to guard against fraud. When it comes to claiming or transferring free tokens, there are a lot of fraudulent airdrops that steal personal money packages. Before claiming the airdrop, please confirm the legitimacy of the project. If the project requires the personal money package to be sent to the airdrop site, you must be extra careful.

Introduction

With new tokens constantly popping up, it is difficult for crypto investors and traders to keep track of all the new project movements. As a result, some crypto projects use airdrops to get out of the way and raise awareness. While everyone loves free cryptocurrency, not all airdrops are legitimate. Let’s take a look at how airdrops work and how to protect yourself from airdrop fraud.

What is a crypto airdrop?

Crypto airdrop refers to the transfer of digital assets from a crypto project to multiple wallets, with the idea of giving tokens to existing or potential users in order to increase project awareness. Tokens are distributed free of charge, but some airdrops require users to complete specific tasks before they can be claimed. Crypto airdrop from 2017Initial Coin Offering (ICO)It is still a marketing strategy that is used by many crypto projects.

How does the crypto airdrop work?

There are many types of crypto currency airdrops, and the common way is to send a small amount of crypto to multiple packages such as Ethereum or Binance Smart Chain. However, there are also rare projects that use NFTs instead of regular crypto currencies for delivery.

Some projects have no strings attached to token issuance, while others require users to complete specific tasks before they can claim them. These tasks typically include asking you to follow your social media account, subscribe to news information, or at least hold a specific amount of tokens in your wallet. Of course, this doesn’t guarantee that you’ll get an airdrop.

In some cases, airdrops are only available to packages that interact with the project’s platform before a specific date.1INCHandUniswapIt is a classic example of the early adoption of this pattern. But unlike regular airdrops, those are worth thousands of dollars.

Why do cryptocurrency projects need to conduct airdrops?

As mentioned earlier, the blockchain project is promoted through free token issuance and expands network development. The sheer number of holders tends to release positive signals, implying a higher degree of decentralization of token ownership for the project. Crypto airdrops can motivate recipients to use and promote the project, as a way to cultivate an initial user base before the project goes live on a crypto trading platform.

On the other hand, airdrops can create an illusion of growth. 因此,評估使用率時必須考慮其他因素。 For example, if hundreds of thousands of addresses hold a token but no one actually uses it, the project is either a scam or no one asks.

Are crypto airdrops and initial coin offerings (ICOs) the same thing?

While both involve new crypto projects, crypto airdrops and initial coin offerings (ICOs) are very different concepts. Airdrops do not require any investment from participants, while initial coin offerings (ICOs) are a form of fundraising.

During the Initial Coin Offering (ICO), the project team will conduct a token sale to raise funds from investors. Initial coin offerings (ICOs) have been all the rage since 2014, back thenEthereumPreparatory activities were held to help its development. In 2017, there was a wave of initial coin offerings (ICOs) in cryptocurrency, with hundreds of new projects following suit

Airdrop type

As we’ve seen, crypto airdrops are not the same. In addition to regular airdrops, which simply transfer encrypted cargo coins to multiple wallets, there are also other types. Common examples include bonus airdrops, exclusive airdrops, and holder airdrops.

Reward airdrops

The reward airdrop requires users to complete certain tasks, such as sharing a post related to the project on Twitter, joining the official Telegram of the project, or creating a post on Instagram and tagging a friend. To claim the reward airdrop, users need to fill out a form with information about the wallet’s address and provide proof of completion of the task.

Exclusive airdrops

The exclusive airdrop is limited to sending crypto to designated wallets. In general, recipients have been exposed to the project before, either as active community members or as early supporters of the project.

September 2020Decentralized Exchange (DEX) Uniswap400 UNI was airdropped to all packages that interacted with the platform agreement before a certain date. Users who hold governance tokens will have the right to vote on future decisions related to the development of the project.

Holders airdrop

Holders airdrop tokens to those who hold a certain amount of digital coins in their wallet for free. The project team usually will, on a specific date and time, to the user’s cryptocurrency holdingssnapshotPhotograph. If the minimum amount is reached, the recipient will receive tokens free of charge based on their holdings at the time of the snapshot.

Many new projects airdrop tokens to Bitcoin (BTC), Ether (ETH), or Binance Smart Chain (BSC) wallet holders because they have the largest community in the field. For example, Stellar Lumens (XLM) airdropped 3 billion XLM to Bitcoin holders in 2016, and this airdrop is exclusive to users of the Bitcoin network.

How do I claim the airdrop?

As mentioned earlier, the process varies by project. But to claim the airdrop, you must have a cryptocurrency wallet. Once you have the wallet, you can check to see if you have received free tokens in the wallet. If you don’t receive it, you must interact with the website to receive the airdrop.

How to prevent airdrop scams?

It is extremely challenging to judge whether the airdrop is legal or a fraud. Before registering any airdrops, be sure:Do Your Own Research (DYOR)If the other party asks for a package to be sent to the website, it should be cautious. Scammers sometimes airdrop tokens to multiple wallets, only to find out that their wallets are empty when the recipient tries to transfer those tokens to a cryptocurrency exchange or other wallet.

Some fraudsters falsely claim to have an airdrop and then lure others to phishing sites. Scrammers trick people into linking their money to websites that closely resemble real websites. Once the wallet is linked and the transaction is signed, the tokens in the wallet will be maliciously emptied. This usually happens with fake accounts that are similar to official Twitter and Telegram accounts.

Some airdrop scams will ask individuals to send crypto to an unknown wallet address and unlock the free tokens as a return. Legitimate airdrops never ask for funds or help words from individuals. Please be cautious about airdropped emails or private messages.

To prevent being scammed, please check the project’s official website and social media channels. Add the official link to the signature to verify whether the airdrop activity really exists.If there is no objection to the project, additional investigation should be conducted to understand the cryptocurrency Guokong. If you can’t find enough information, it’s best to ignore the airdrop outright.

To make it foolproof, individuals can set up new wallets and email addresses that can be used exclusively to receive airdrops. In this way, it will ensure the safety of personal money and funds from being used as a reason for airdropsPhishing on the net。 Most importantly, never share personal information with others.

summarize

The airdrop allowed cryptocurrency projects to emerge and gain traction in the hearts of the people in the field. For crypto lovers, this is also the first choice for the Rich Individuals Emerging Token Investment Portfolio.