Airdrops are free collectibles given away by the authors of a certain NFT collection.
There are two likely explanations why an individual would conduct an airdrop:
- Increase interest in the NFT initiative to generate greater buzz. Award a participant or members depending on certain criteria, such as making a social media post.
- Airdrops are not just a great way for blockchain projects to attract new users but to reward existing ones for their support and cooperation.
For most crypto investors, there is nothing more important than making a return on their investment. Thanks to the volatility, this can be done quickly or it can be a hugely difficult task. That’s why crypto airdrops are an inexpensive way to make additional returns on your portfolio. After all, airdrop tokens are free and never hurt, right?
Almost daily, there are new crypto airdrops, with some being easier to obtain than others. Not every airdrop is equally reliable. Crypto airdrops always seem very lucrative at first, but they can also cause problems. To make sure you can profit from crypto airdrops, but also see through any pitfalls, you can read all about crypto airdrops and how they work in this article!
There are several ways to receive these tokens. Many times, an airdrop is associated with free cryptocurrencies, but this is not necessarily true. You have to put in time and effort or you may have to deal with transaction fees. However, it is also possible to participate in an airdrop for free!
Crypto projects have a certain amount of available tokens that they give to people who meet eligibility requirements. By completing tasks, you can become eligible for these tokens. There are several ways to participate in crypto airdrops. Often, you have to sign up for an airdrop or perform other actions. After completing tasks or winning the tokens, you can claim them or they will be deposited into your wallet.
There have been hundreds of airdrops in the past, including the airdrops of leading crypto projects. There are, therefore, a huge number of examples of crypto airdrops. Airdrops have been occurring for years in the crypto world. The first airdrop ever took place back in 2014. Back then, a crypto project even handed out 50% of all tokens during an airdrop.
The crypto project, called Auroracoin, has its own cryptocurrency token, known as AUR. The project had plans to make AUR the national cryptocurrency of Iceland. Therefore, the entire AUR airdrop went to Icelandic citizens, who could receive a total of 31.8 AUR per individual.
Many airdrops also followed in the years after the Auroracoin airdrop, including those of slightly more well-known cryptocurrencies. For example, in 2016 and 2017, respectively, Stellar Lumens (XLM) and Bitcoin Cash (BCH) organized cryptocurrency airdrops, distributing their airdrop coins to Bitcoin owners. Bitcoin Cash gave away one Bitcoin Cash token per Bitcoin, which was worth thousands of dollars at its peak.
In a nutshell, Crypto airdrops are a marketing strategy used by startups to give tokens to existing cryptocurrency traders for free or in exchange for minimal promotional work.