What Is a Cryptocurrency Airdrop?
Cryptocurrency airdrop is a marketing strategy adopted by cryptocurrency startups to promote their new projects and tokens. It involves distributing their native cryptocurrency to existing or potential users for free. Sometimes, users must complete simple promotional activities before they can receive these "sky" funds, such as following the project's social media accounts and sharing posts their.
There are different types of airdrops, and each cryptocurrency project has its own requirements. But most airdrops have the same goal: to raise awareness and general interest in the project.
How does a cryptocurrency airdrop work?
There are many different types of cryptocurrency airdrops, but they generally involve sending a small amount of cryptocurrency to some wallet (usually on Ethereum or Binance Smart Chain). Although less common, there are also projects that give away NFTs instead of the more commonly seen cryptocurrencies.
Airdrop classification
As we have seen, there are many different ways to conduct cryptocurrency airdrops. The standard airdrop is simply a donation of cryptocurrency to a number of wallets, but we still have some other types. The most popular are bonus airdrops, exclusive airdrops, and airdrops for holders.
Bounty airdrop
This is an airdrop as a form of bonus. To participate, users must complete certain tasks, such as sharing a post about the project on Twitter, joining the project's official Telegram, or creating a post and tagging a few friends on Instagram . To claim tokens from the bounty airdrop, you may be asked to fill out a form with your wallet address and provide proof that you completed the task.
Exclusive airdrop
This is a form of airdrop that only sends cryptocurrency to pre-specified wallets. Typically, the recipient is someone who has been involved in supporting the project from the beginning, such as being an active member of the community or an early supporter of the project.
In September 2020, decentralized exchange (DEX) Uniswap gave out 400 UNI to each wallet that had interacted with their protocol before a specific date. Governance tokens provide holders with voting rights on decisions related to the future development of the project.
Airdrop to holders
Holder airdrops are the distribution of free tokens to people who already have a certain amount of digital currency in their wallets. The project team often takes a snapshot of users' cryptocurrency holdings at a specific date and time. If the wallet balance meets the minimum requirement, the recipient can claim free tokens according to the amount they held at the time of the snapshot.
Many new projects distribute tokens to holders of bitcoin (BTC), ether (ETH) or BSC wallets, as they have the largest community in this field. For example, Stellar Lumens (XLM) airdropped 3 billion XLM to BTC holders in 2016, and this airdrop was exclusive to users in the Bitcoin network.
To avoid fraud in the name of airdrops, Binance has opened a megadrop program to help its users safely farm airdrops.
What is Megadrop? : Link (https://mitooholding.com/2024/06/22/megadrop-la-gi-tim-hieu-ve-nen-tang-ra-mat-token-moi-cua-san-binance/)
How to participate in Megadrop: Link (https://mitooholding.com/2024/04/29/huong-dan-quest-web3-du-an-bouncebit-tren-megadrop/)
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