What is Airdrop and how to find current cryptocurrency airdrops?

Cryptocurrency
23 October 2023
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What is AirDrop?

Airdrop (or airdrop, airdrop) is a process that, like many others in the blockchain sphere, has its own peculiarities and strategies. In this article, we will look at what airdrop is and what methods exist for finding actual cryptocurrency giveaways.

What is AirDrop?

Airdrop, or "eirdrop", is a method of distributing cryptocurrency or tokens whereby they are distributed free of charge to certain users or communities based on certain previously unknown selection criteria. This process has become widely popular in the cryptocurrency industry as a way to attract attention to new projects, increase their reach, create an active community and earn money

Airdrop's main features:

  • Free distribution. Airdrop distributes tokens or coins for free. Recipients do not have to contribute any additional funds to participate.
  • The goal is to attract attention. One of the main purposes of Airdrop is to attract attention to a project or cryptocurrency. It allows project creators to quickly build a user base and an active community.
  • Incentivizing activity. Airdrop can incentivize participants' activity. For example, to receive free tokens, users can be asked to perform certain actions, such as subscribing to the project's social networks, reposting, participating in polls, watching videos, and others.
  • Creating long-term holders. Some projects conduct Airdrop to create long-term token holders who will support and use their product in the future.
  • Diversification of holders. Airdrop allows diversification of token or coin holders, which can make the distribution more decentralized and sustainable.

It is important to note that Airdrop can be both a marketing move by successful projects and a way for new projects to attract their first users. Participants should be vigilant and verify the authenticity of Airdrop to avoid fraud or phishing attacks.

How did airdrops evolve?

How did airdrops evolve?

Cryptocurrency airdrops are an interesting phenomenon that has gone through several key stages of development. Here is a brief history of the development of cryptocurrency airdrops with key dates:

  • 2009. In the early years of the cryptocurrency industry, airdrops did not exist in principle, as cryptocurrencies themselves had just appeared. This was the time when the first and most famous cryptocurrency project, Bitcoin, appeared.
  • 2011. In 2011, the first case of using airdrop as a method of cryptocurrency distribution appeared. Thus, crypto-enthusiast Gavin Andersen created the first faucet (faucet) and at the same time held the first airdrop, and in 2011 gave away 19.700 BTC for free to attract attention to the project, "I want Bitcoin to be a successful project, so I created this service to give you some coins to give you something to start with," said Gavin. A website he created was used for the giveaway. 
  • 2013. Ripple (XRP), one of the largest cryptocurrencies used airdrop to distribute its coins to users. This event became an example for many other projects.
  • 2017-2018. This period saw an explosion of interest in airdrops. A lot of new projects used airdrops as a powerful marketing tool to attract investors. However, it also led to fraud and spam, which forced platforms and projects to introduce stricter rules.
  • 2020-2021. This period saw a movement towards more decentralized and automated airdrops using smart contracts on the Ethereum blockchain and other platforms. This made airdrops more transparent and efficient. During the growth phase, there was also an airdrop boom: many projects entered the market using airdrops as an effective and mutually beneficial tool to promote their project and token. As a result, many early adopters were able to significantly increase their capital, and projects gained publicity and new investors. 
  • Our time. Currently, airdrops remain an important tool for marketing and distributing cryptocurrencies. They can be used both to attract new users and to reward existing token holders.

This brief history demonstrates that airdrops came to the market not so long ago, but have managed to establish themselves as an effective and mutually beneficial tool for marketing and earning, but is it that simple? Let's talk about it further.

How do cryptocurrency airdrops work?

How do cryptocurrency airdrops work?

The airdrop process usually starts with careful planning on the part of the project. It determines the number of tokens that will be distributed and the conditions that users must fulfill in order to participate in the airdrop. These conditions may include various actions such as subscribing to the project's social media accounts, registering on the website, or other activities that will help increase awareness of the project.

The next step is to develop a smart contract that automates the token distribution process. The smart contract contains airdrop rules, including terms, conditions, and distribution logic.

The project then announces the upcoming airdrop on its official resources and advertises it. Users who wish to participate perform the necessary actions and provide information that may be required to verify their participation, but it is important to note that the project is not obliged to announce the upcoming drop. This information can be a long time rumor and speculation of users who hope to profitThe same is true with the execution of activities - there is a possibility that the conditions will not be known in advance, forcing users to do the maximum possible interactions with the project. Soon the project team may announce airdrop, which will take place only for those users who have already done this or that activity. In this way, free coins will be distributed to a narrow circle of people, which may add value to the token when it is listed on an exchange. There are many variations, early users may get prioritized, or they may be among everyone else.

By finalizing the airdrop terms, the smart contract automatically distributes tokens to participants according to predetermined rules. 

What are the airdrops of tokens?

What are the airdrops of tokens?

There are several different types of token airdrop, each of which is used by projects depending on their goals and strategies. Here are some of the most common airdrop types:

  1. Referral Airdrops. In this case, participants receive bonus tokens for inviting new users to the project. This helps to spread information about the project and increase its reach.
  2. Airdrop for Holders. Airdrop for cryptocurrency holders is a mechanism where projects reward their existing holders of a particular cryptocurrency with free tokens. This type of airdrop is used to stimulate interest and participation of holders of a single cryptocurrency in a new project or token.
  3. Airdrops with conditions. Some airdrops require participants to complete certain activities or tasks before receiving free tokens. These can be activities such as participating in surveys, leaving reviews, or reposting on social media.
  4. Airdrop for users. Airdrop for users is a type of airdrop aimed at rewarding existing users of a project or platform. Under such an airdrop, active and loyal participants can receive free tokens or coins as recognition and rewards for their support and participation in the project.
  5. Airdrops by random selection. In some cases, projects may choose random participants to distribute tokens without any additional conditions. This can create intrigue and increase participation.
  6. Airdrops in exchange for deposits. Some projects offer free tokens in exchange for deposits or staking other cryptocurrencies.
  7. Airdrops as part of an ICO, IDO or STO. Some ICOs (Initial Coin Offering), IDOs (Initial Dex Offering) or STOs (Security Token Offering) include airdrops as part of their marketing strategy to attract more investors.
  8. Airdrop for testing the project for bugs, overloads and much more. That's why some users rack up transactions in the network of a particular project in large volumes to create the appearance of an active user and tester of the project, who can be thanked with free tokens.

These various types of airdrops allow projects to accomplish different goals, whether it's attracting new users, rewarding loyal token holders, or increasing activity in the community. It's important to realize that projects are marketing for a reason - they're doing so to attract investors who will buy coins, helping the price grow and letting early investors, funders, team and other asset holders lock in profits.

How to participate in cryptocurrency airdrop?

How to participate in cryptocurrency airdrop?

This is roughly what the basic airdrop conditions look like in projects:

  • Register a cryptocurrency wallet. Tokens received in airdrop will be credited to it.
  • Confirm your wallet address. Some platforms will require you to undergo KYC verification, provide scanned copies of documents or perform other actions to confirm your identity.
  • Subscribe to the project's social networks. In some cases, in order to participate in airdrop, it is necessary to subscribe to the project's social networks, leave likes, comments, make reposts, etc.
  • Perform certain actions. In some cases, to participate in airdrop you need to perform certain actions, such as subscribing to a newsletter, sharing a post on social networks, taking a survey, making a transaction in the project network, being active for a certain number of days and much more.

Information about upcoming airdrops can be found at the following resources:

  • Sites and forums about cryptocurrencies.
  • Social Media.
  • Airdrop search platforms.

Airdrops come in two basic types:

  • Open airdrops. Anyone can take part in them.
  • Closed airdrops. Only certain users who meet certain criteria, such as owning a certain number of tokens or being members of the project's community, can participate in them.

Examples of large airdrops

Here are a few examples of major airdrops that have taken place in recent years:

  • Decreed. In February 2016 Decreed held airdrop 258.000 DCR. There were no special conditions, the giveaway was held among everyone who signed up for it. The biggest "win" amounted to $32500.
  • Oyster Pearl. In November 2017, PRLs were raffled off among Airdrop Alert subscribers, with winners receiving 2,227 coins each. The peak value of such a giveaway was $11,000. It was also the first ever Airdrop exclusive.
  • Minereum. You may have never heard of this project, but they held the biggest airdrop in history. The winners received 32000 MNE each, the peak value of which reached $440000.
  • Stellar. In June 2017, Stellar held the largest giveaway in history (in terms of value of total tokens given away). Every BTC holder could claim the giveaway, at a rate of 1000 XML per 1 BTC. This giveaway remained active for quite some time, and by November 2018, $125 million worth of tokens had been given away, or 19% of all XML tokens. 

Recall that users received the coins absolutely free of charge and it was absolutely natural to cause the FOMO effect (the effect of lost profits), which provoked people to buy and hype around the project, which helped its promotion

Where to look for cryptocurrency airdrops?

Information about upcoming airdrops can be found at the following resources:

  • Cryptocurrency websites and forums. Sites such as CoinMarketCap, CoinGecko and Reddit often publish news about upcoming airdrops.
  • Social Media. Many projects conduct airdrops through their social media channels such as Twitter, Telegram and Discord.

Examples of resources for finding airdrops

  • Airdrop Alert is a platform that tracks and publishes information about upcoming airdrops.
  • Airdrops.io is another platform that tracks and publishes information about upcoming airdrops.
  • DappRadar is a platform that tracks decentralized applications (dApps). DappRadar also publishes information about upcoming airdrops held by dApps.
  • Coindar is a platform that tracks developments in the world of cryptocurrencies, including Airdrop.
  • CoinHunt is a mobile app that allows users to earn cryptocurrency for completing simple tasks such as viewing ads and visiting certain locations. CoinHunt also publishes information about upcoming airdrops.

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Expert opinion from Cryptology about AirDrop cryptocurrencies

Airdrops are a unique method of asset distribution that was first implemented in the crypto world. Airdrops have proven to be a mutually beneficial tool in which everyone gets the desired benefit: projects get quality marketing, and people get money.

Many projects in the past have generously rewarded their early adopters by giving away free tokens. Motivated by past successes, people began to take a massive interest in the topic of airdrops, participating in the development of projects and creating entire farms of accounts, hoping for big money in the future.

It is important to understand that you can really make a lot of money here, but, like everywhere, it is not as easy as it might seem at first glance. Any investment tool has its indicators, based on which you can determine how interesting it is to invest your time and money in it. It is important to understand what the selection criteria are, what are the risks, opportunities and much more. After a detailed analysis, ask yourself if such conditions and risk-reward ratio are suitable for you. Don't go with the crowd, do your own analysis and effectively evaluate the value of a project.

Frequently Asked Questions about Airdrop

Cryptocurrency Airdrop what is it?

Cryptocurrency Airdrop is a way to distribute digital assets to holders of a particular cryptocurrency for free or under certain conditions.

How do airdrop cryptocurrencies work?

The airdrop organizers select a certain number of wallet addresses and send them a certain amount of digital assets.

Why are airdrops being held?

Airdrop's can be used to promote a new cryptocurrency, attract new users, increase the visibility of a project, or as a way to reward existing holders.
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