Crypto Airdrops
What is a Crypto Airdrop?
An airdrop in crypto is a kind of giveaway or promo adopted by most crypto projects to create awareness, hype and introduce their product to the market. It is a very common marketing strategy and it involves the project distributing its native cryptocurrency to current holders or potential users for free. Typically, users have to perform simple promotional tasks before they receive the airdrops.
There are different types of airdrops, and each project has its terms and conditions. Some are rewarded directly into the user's wallets, while others require a manual claim. Some projects also give away NFTs.
Anybody with a cryptocurrency wallet can participate in and claim airdrops.
How Do Crypto Airdrops Work?
Airdrops usually involve a crypto project distributing a certain amount of crypto into several wallets for free, usually upon the completion of simple promotional tasks. These tasks are simple and easy tasks like following their social media accounts, subscribing to their newsletter, or inviting friends to sign up on their platforms. Some projects also giveaway airdrops without asking for anything in return. You are not always guaranteed to be among those who will receive the airdrop tokens as distribution is most times done randomly.
The importance of these airdrops to the crypto project is that it helps create awareness and hype around their product and also grow their network to gain wider adoption.
Airdrop Scams
Everybody loves free things, even free crypto. But not all airdrops are legit. It is difficult to tell if an airdrop is legit or not, so you should be very careful when participating in any airdrop.
When an airdrop requires you to connect your wallet to an airdrop website make sure it is legit because fraudulent airdrops can steal your wallet funds when you interact with these sites.
Sometimes, these fraudulent airdrops will distribute crypto into your wallet, but when you try to transfer these tokens to a crypto exchange or another wallet, your funds will be stolen.
Scammers can also impersonate legit airdrops and give links to phishing sites where you will have all your funds drained out.
Conclusion
Airdrop is a powerful marketing tool for crypto startups to make them stand out and develop a strong community or wide adoption. It is also a smart way for crypto enthusiasts to grow their portfolios. If you are a newbie in crypto, airdrops are a good entry point. However, always DYOR before participating in or claiming any airdrop.
References
[1] <Binance Academy>, '<What Is a Crypto Airdrop?>' (online, <2022>) <https://academy.binance.com//en/articles/what-is-a-crypto-airdrop>.
[2] BULB, 'Write to Earn. Read to Earn' (online, 2022) <https://www.bulbapp.io/>
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