Airdrops: An overview
A crypto airdrop is a method used by blockchain startups to distribute tokens or coins directly to specific wallet addresses, aiming to raise awareness and encourage adoption of new projects. Airdrops can vary, with some requiring participants to complete tasks, hold certain amounts of existing tokens etc.
Understanding Crypto Airdrops
A crypto airdrop is an event typically organized by blockchain startups to promote a new project. The goal is to spread the word and get more people involved. Airdrops are usually announced through the project's official channels and cryptocurrency communities, with tokens or coins sent to selected wallets based on specific criteria.
To qualify for an airdrop, users must meet certain requirements set by the project, which may be vaguely defined and not always explicitly stated. These could include holding specific amounts of cryptocurrency or completing tasks like promoting the project or engaging with its community.
Types of Crypto Airdrops
There are several types of airdrops, each with its own requirements:
Standard Airdrop: Participants simply sign up and provide a valid wallet address to receive tokens, often with no other requirements.
Bounty Airdrop: Participants earn tokens by completing tasks, such as promoting the project on social media or engaging with the community.
Holder Airdrop: Recipients must hold a specific amount of an existing token in their wallets to qualify, with the number of tokens received often linked to the amount and duration of holding.
Exclusive Airdrop: Participants are selected or invited by the project team based on criteria like reputation, influence, or contributions.
How Crypto Airdrops Work
A crypto airdrop typically follows these steps:
The project announces the airdrop and its requirements through official channels.
Participants register by providing their wallet addresses and completing any required tasks.
The project team verifies eligibility and distributes the tokens to qualifying participants.
Participants receive the tokens in their wallets and can use them based on the project's terms.
Airdrops can also be distributed without prior announcements or specific requirements. In these cases, tokens are automatically given to users who have previously interacted with the platform, such as by using its services or holding certain assets, as seen in events like the Pyth airdrop to early Infinex Craterunners.