What is Airdrop?
Airdrop is a marketing activity often carried out by startups in the crypto space. The purpose of this activity is to market the project and attract more traders when the project's token is listed on an exchange in the form of an ICO. There are two popular ways of airdrop that projects often use is to give away tokens or NFTs from the project.
To qualify for the airdrop, users may need to hold a minimum number of tokens in the wallet. In addition, users may need to perform certain tasks, such as sharing articles about the project on forums, social networks, connecting with a specific member of the blockchain project, or writing Blog post with content related to the project.
Airdrop classification
Retroactive
Retroactive is a type of airdrop where the project will give tokens to users, support the project as well as contribute ideas to build and develop the project.
Uniswap and 1Inch are two typical projects for this type of airdrop. Most recently, Optimism also airdropped this form to early-stage users who supported the project.
Bounty Airdrop
Bounty Airdrop is a form in which participants must complete interactive tasks with the project's social media channels to be eligible to participate such as: Telegram, Twitter, Facebook, ...
Airdrop for holders of a certain type of token
This form of Airdrop requires participants to hold certain tokens in wallets that are eligible for the Airdrop.
Advantages and disadvantages of Airdrop
Advantages
- Airdrops are a way for projects to build loyalty and spread their tokens to a wider audience.
- Motivate newcomers to join the crypto market when they can earn money from the airdrop at a cost of 0 coins.
Weakness
- Deciding how many tokens to issue can get tricky. If the release is too small, the project's marketing and community building strategy will not produce results. If too much is issued, the project runs the risk of diluting the token's market value.
- Airdrop recipients will sell tokens as soon as they are tradable, causing the value to plummet. As a result, those who buy tokens later will see the value of their investment decrease.
- New inexperienced users are easily lured by scammers to click on scam links and ask users to provide their private key.
- The asset value that is airdropped from projects is usually of negligible value.
Who can participate in the Airdrop?
As mentioned above, Airdrop is a form of marketing from new projects to increase the awareness of the project to the community. Therefore, any investor can participate in the Airdrop as long as they fully meet the conditions from the project.
Wallet address when participating in Airdrop
When participating in Airdrop programs from different projects, users need to prepare many wallet addresses from different chains such as: Avalanche, Ethreum, Solana, ...
Note: you should prepare yourself a set of extra wallets dedicated to participating in the airdrop to avoid the risk of losing assets.
Information channels about Airdrop
To find information about the project's Airdrop event, you can refer to the following sources:
- Reputable airdrop websites
- AirdropAlert: https://airdropalert.com/
- CoinMarketCap: https://coinmarketcap.com/airdrop/
- Look for projects with the potential for retroactive rewards from reputable communities on Telegram such as: Fomo Sapiens, Migoi.io, Coin98 Insights.
summary
Through this article, you must have somewhat grasped the basic information of the airdrop. Wish you success and make a lot of profit from this potential market.
