What are crypto airdrops?
Crypto airdrops are free cryptocurrency assets. That’s it. That is the complete definition of crypto airdrops. But, I want to dig deeper and answer the most important questions about airdrops, like what is the purpose of crypto airdrops, what kind of airdrops are there, and are they profitable.
The first crypto airdrop was organized in 2014. For crypto space that is ancient history! It was Auroracoin and it was dropped to Iceland residents. OmiseGo, now known as OMG, was a big airdrop in 2017. To get OMG you didn’t need to do anything. You didn’t need to join multiple social media channels, download the app, or sign up for the website. You only needed to have Ethereum coins in your wallet.
In 2018 crypto airdrops craze started. There were so many airdrops out there and scams too. The Crypto airdrops scene has been established with several most common types of airdrops still known today. But, firstly let us see why even cryptocurrency airdrops are organized.
Why are crypto airdrops organized?
The first goal of when blockchain project is organizing a crypto airdrop is probably to generate awareness. The increase of awareness can generate more leads in the token sale, which was very popular in previous years. The great bull run at the end of 2017 was generated with the ICO craze. More talks about the cryptocurrency project may mean better trading results and an increase in the asset price. But dumps of the airdropped tokens are also common, and they usually produce the opposite effect on the price.
Another reason for airdrops is the wider distribution of the tokens. OmiseGo distributed 5% of the token supply. In 2017 Stellar did the similar. They distributed 19% of the coin supply to the Bitcoin holders. When more users will have the tokens, for sure more users will use them, right?
Also, the blockchain project sometimes wants to reward the users for their loyalty with airdrops. The most recent example is the incredible Uniswap airdrop. Uniswap is one of the most popular DeFi platforms. For only using once the platform to convert one cryptocurrency asset to another one, users were airdropped with 400 UNI tokens. That immediately had a value of over 1200 dollars.
What kind of crypto airdrops are there?
At first, airdrops started with holder airdrops. But now more sophisticated airdrops are common. Usually, blockchain projects ask airdrop participants to complete various tasks to get free coins or tokens. The tasks may vary from following on social media to downloading the mobile app.
Holder airdrops are one of the oldest types of airdrops. To get free cryptocurrency assets you will have to hold another cryptocurrency asset. Usually, the blockchain project announces the snapshot date, and every wallet that contains some crypto asset on that date will get new airdropped tokens. Flare Network airdrop is one of the latest popular holder airdrops. To get SPARK tokens you will need to have XRP coins on supported cryptocurrency exchanges or in your private wallet.
I call them “regular” because they are the most common crypto airdrops today. They are usually hosted with the Telegram bot or with google airdrop form. Sometimes, which is always good, blockchain projects do the extra effort and hosts the airdrop on their website. Participation in these kinds of airdrop is usually very easy and fast. But, the rewards are not very big. But hey, free coins are free coins, right. Like one DOGE is always one DOGE!
To participate in these kinds of airdrops you will need to complete various social media tasks, register for the website, or download the mobile app. New blockchain projects need exposure and with these airdrops, they are getting it.
It is important to evaluate if the airdrop is real. You don’t want to waste your time participating in fake airdrops. We, at airdropsmob.com, are always trying to publish only legit airdrops. Here is our guide on how to make a difference between fake and real airdrops. Also, it is very important to stay safe while airdropping. Always be careful when you are providing your personal information, and especially when you are doing the KYC. KYC stands for “Know Your Customer”, and for some airdrops, you will need to provide proof of your identity. That means you will need to submit pictures of your passport or driving license. This may be very dangerous, and it was the target of plenty of airdrop scams in the past. The price for compromised information may reach up to 40 dollars on the dark web.
Bounty airdrops are a bit different and harder than the regular airdrops. To participate in the bounty airdrops you will need to do tasks regularly, usually on a weekly or daily basis. For example, you will need to post x number of posts on some social media or forum, and then you will need to report your work to the bounty manager. Sometimes you will need to post YouTube videos, relevant articles, and similar.
As you can see, bounty airdrops are complicated and not so fast as regular airdrops. But, on the other hand, bounty rewards are much bigger than the ones in regular crypto airdrops.
How to start collecting crypto airdrops?
To participate in the most common airdrops today, you will need to have various social media accounts like Twitter, Facebook, Telegram, Medium, Reddit, or YouTube. We always recommend using a dedicated email address that you will use only for airdrops. And of course, you will need an Ethereum address, because most of the blockchain projects that are organizing crypto airdrops are built on Ethereum. It is best to read our comprehensive guide on how to start collecting crypto airdrops.
Are cryptocurrency airdrops profitable?
After you have completed all the tasks, provided your data like email address and wallet address, you will need to wait sometime for tokens to be distributed. It can pass months until the tokens are distributed, but if the blockchain project is legit, you will get your tokens. After you finally get your tokens, and if the blockchain project is new, you will need to wait until the project gets listed on some cryptocurrency exchange. That is the only way to make a profit from your free crypto tokens. That is why we are only listing legit and project with potential. We do not want our users to waste their valuable time participating in fake or non-potential projects that will never have any value.
Airdrop tokens can have stunning value. That is why they are still very popular. Uniswap airdrop, as previously mentioned, had a value of $1200. That is a huge value, especially for undeveloped countries. Coinbase airdrops are also very popular. They have a very good concept and excellent airdrop execution. Users need to register for Coinbase and complete the KYC process to participate. New airdrops are often announced, and if you have participated in several airdrops organized by Coinbase you could earn more than 150 dollars. The good thing with Coinbase airdrops is that tokens are immediately available to transfer or convert.
What is the future of the crypto airdrops?
New crypto airdrops are announced all the time. Just recently there were rumors about three huge upcoming airdrops for December 2020. So users always need to keep an eye on the actual airdrops. You never know what the next airdrop will be a Uniswap airdrop, but one is for sure. 2021 will be an exciting year for the cryptocurrency airdrops.