Cryptocurrency airdrops: What they are and how they work

A cryptocurrency airdrop consists of the distribution of tokens from a new crypto project to multiple wallet addresses. There are different types of cryptocurrency airdrops within the ecosystem, which can range from keeping X amount of tokens in a wallet, completing tasks or simply interacting with the protocol. They may seem difficult to find, but you will see how it is not as difficult as it seems...

What is a cryptocurrency airdrop?

A cryptocurrency airdrop consists of distribution of tokens from a new crypto project to multiple wallet addresses. The idea behind airdrops is allow users to reward for participating in community growth to give more visibility to the project and in turn generate more trade volume within the project. Of course, it must be taken into account that there are certain times that some projects distribute said airdrop and the token holders are merely those who have received the airdrop. This is a warning sign that we must take into account, since perhaps the project is not as promising as it seems and does not have enough necessary traction. These tokens are distributed free of charge, but there is some of these that require performing certain prior tasks before being eligible to be eligible for the distribution of the tokens. Airdrops gained popularity during the 2017 Initial Coin Offering (ICO) boom, where they They are still used as a good marketing strategy for many projects to generate traction for the project.

How do cryptocurrency airdrops work?

As we mentioned in the previous paragraph, cryptocurrency airdrops vary depending on the conditions of the issuers. These consist of a distribution of tokens to users who will receive the tokens in their cryptocurrency wallets. Airdrops are not only limited to the distribution of fungible tokens, NFT airdrops can also be distributed. Some projects distribute airdrops without asking for anything in return, although others previously put a series of tasks to perform to be eligible for the airdrop. These tasks can range from promotion on social networks, testing a project's testnet, holding a certain amount of X tokens, testing protocol functionalities or simply interacting with the platform before X date. These tasks can also be distributed into different tiers, i.e. the more tasks you complete and the more volume of participation you have, more tokens you can receive. In the next paragraph we will delve into the different types of airdrops that we can find.

Airdrop Types

As we have discussed, there are different ways to distribute a cryptocurrency airdrop. Aside from the standard airdrop that simply transfers cryptocurrency to a series of wallets, there are a few other types. Let's see What types of airdrops can we find?:

1. Airdrop for holders

This is one of the easiest airdrops for users to get. This type of airdrop consists of keep a certain amount of X token in our wallets to be eligible for the airdrop distribution. Next, the protocol takes a snapshot of the wallets on a specific date and time to determine which wallets will be eligible for the airdrop distribution. Usually these airdrops are distributed directly to designated wallets, although there are certain cases that we must claim them manually. The best-known cases of these types of airdrops are those of Flare network, which required holding XRP tokens in a wallet to be eligible. Another of the best-known cases is that of XLM, which carried out an airdrop of 3.000 million tokens for those who kept BTC in their wallet.

2. Exclusive airdrop

Exclusive airdrops are characterized by sending the tokens to certain wallets. These airdrops are the ones They reward the community for collaborating in its growth or to early adopters. The clear example of this type of airdrop is the one carried out by the Uniswap decentralized exchange in September 2020, when it distributed 400 UNI tokens to each wallet that interacted with the protocol before September 6 of the same year.

3. Airdrop ARB

This type of airdrop is characterized by reward users who have completed a series of tasks like those we have explained in the previous paragraph. These can range from promotion on social networks, testing a testnet, interacting with the protocol by testing its products (liquidity pools, bridges, swaps...). These airdrops are the most common, like the one we have recently witnessed with Arbitrum or Optimism. Of course, completing these tasks does not ensure eligibility for the airdrop.

How to find airdrops of cryptocurrencies?

In order to find cryptocurrency airdrops We have different ways to be able to make sure before distribution to complete the tasks and be eligible.

• We have pages like Defillama which has a dedicated section for projects that do not have a token and have the possibility of airdropping cryptocurrencies in the future.
• We can also look at ICO Drops, a page that allows us to view both the airdrops that are on the way, those that are going to be announced and those that have already finished.
• Another very interesting option is the page called Airdrop Alert, which has a very intuitive interface that allows us to view information about possible future airdrops.
• Another of the most viable and efficient options is the social network Twitter, where there are multiple accounts that share information about possible airdrops and the steps to take to qualify for them. One of the most important is Alpha Insiders, which also has a Discord community (premium access through an NFT) where cryptocurrency airdrops and NFTs are published daily.
• En the Investment Training Academy, where teachers teach their students about potential cryptocurrency airdrops and the tasks to complete to be eligible for them. Many of the Academy's students have been eligible for different cryptocurrency airdrops since its founding in 2020, such as tokens such as UNI, 1INCH, FLR, APT, OP or the most recent ARB. The value of these airdrops currently amounts to $100.000, all without spending a single cent...