What Is Cryptocurrency Airdrop?
A marketing tactic known as a cryptocurrency airdrop is transferring cash to wallet addresses. Small amounts of the new virtual currency are transferred for free or in exchange for a small service, like retweeting a post from the business and issuing it to the wallets of active blockchain community members. A crypto airdrop’s main objective is to raise interest in and use a new token or coin.
Understanding Cryptocurrency Airdrop
Crypto airdrops are a marketing tactic commonly used by blockchain-based firms to kickstart a project for a digital currency. Its objective is to raise awareness of the cryptocurrency project and encourage more people to invest in it when it launches as an ICO on an exchange (ICO).
Typically, airdrops are advertised on the business’ website, social media channels, and cryptocurrency discussion forums. Only specified wallets based on the blockchain network or coins stored in active wallets are used to send coins or tokens.
A recipient might need a minimum number of cryptocurrency coins in their wallet to be eligible for the gift.
Alternatively, they can be required to do a specific activity, such as publishing a blog post, interacting with a specific member of the blockchain project, or blogging about the currency on a social media platform.
Types of Airdrops
1. Standard Airdrops
Participants in conventional crypto airdrops merely announce their interest in receiving the airdrop from participating. A valid wallet address must be provided by the user, while some airdrops only need this.
Standard airdrops frequently feature a predetermined number of tokens to distribute and a cap on the number of tokens any one person can receive. As a result, certain common airdrops have a deadline. These airdrops may be more challenging to collect even if they are popular owing to their simplicity. Nothing stops a single user from generating many wallets to fast spend the airdrop amount.
2. Bounty Airdrop
When users complete specific activities, they receive reward cryptocurrency airdrops. These duties frequently involve spreading the word about a project on social media by posting and tagging the business or retweeting a recent tweet about the initiative.
Users frequently gain points for doing tasks correlated to the size of the reward airdrop they receive. Users can also need to accumulate a specific number of points before they are eligible for an airdrop. A user might, for instance, qualify for an airdrop after accumulating 300 points, with each of the items above costing 100 points apiece.
3. Exclusive Airdrop
Exclusive crypto airdrops, a more specific kind of holder airdrop, occur when particular people are hand-picked for the airdrop. The distinction is that they may be chosen based on factors other than the number of tokens they possess. The length of time invested in a project, money spent on the non-token activity, or the number of forum posts. An exclusive airdrop might distribute tokens to wallets that may not even have any tokens.
4. Holder Airdrops
Holder crypto airdrops happen automatically based on who holds how many tokens in the existing token supply. All blockchain users have complete visibility into wallets and token distribution since blockchain data and wallets are included in a publicly distributed ledger.
Holder airdrops have the drawback that some people holding tokens may not want an airdrop. In contrast, holder airdrops guarantee that only the most prominent, invested persons profit. If members don’t own a specific number of tokens, some holder airdrops won’t grant an airdrop; instead, they’ll prorate the award sum.
5. Raffle Airdrops
As mentioned above, a raffle airdrop may be paired with some of the airdrop. A project will frequently announce the number of airdrops they plan to offer while enticing users to earn lottery tickets. You can get this ticket by holding tokens, accruing points, or just by expressing interest.
In the end, the number of people interested in the airdrop frequently outweighs the desired number of airdrops from the company. As a result, there is a raffle, and a select few wallets are chosen randomly to receive the airdrop.