What are Crypto Airdrops and How to Get Them?

Crypto airdrops, the distribution of free crypto tokens in the $2.84 trillion virtual money sector, are a popular tactic to raise product awareness and expand the audience. Development teams often inform customers via social media to engage large entrepreneurs. In 2024, various projects paid $4.91 billion to global users through this marketing strategy. This blog post explores what is a crypto airdrop and how it benefits all parties.

Understanding Crypto Airdrops

Cryptocurrency airdrops are advertising tactics that involve transferring a portion of digital coins or tokens to industry members. They are usually implemented along with other marketing tools, including blog posts, social media advertising, and various user engagement methods. Teams give away some assets to inform users about innovative projects and announce this on their sites and social media.

After completing the cryptocurrency promotion campaign, the developer transfers coins or tokens to participants. These assets end up in active crypto wallets, which allows businesses to cut advertising costs and expand their target audience.

As we know, coins’ value is affected by their utility. Their value increases if people increasingly use coins for financial operations. The modern market is oversaturated with cryptocurrency, and companies need to make a lot of effort to promote new products. The more users learn about the existence of assets, the more extensive their use will be.

Crypto airdrops help with such promotion. They promote products, their philosophy, features, and prospects, allowing you to form a loyal client base.

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Types of Crypto Airdrops

You must know not only what is a crypto airdrop, but also the main types. As a rule, the following types of strategies are distinguished:

• Standard airdrops. In this strategy, assets are distributed among people who have the selected cryptocurrency. The basis for the transfer is the blockchain on which the advanced coin is created. Let’s assume the asset is created in the Ethereum (ETH) ecosystem. Then, developers can give tokens to people who currently have ETH.
• Holder airdrops. Such a procedure involves the transfer of tokens to the owners of a certain coin. The developer chooses a virtual currency and all owners can take part in the distribution, regardless of the platform. This tactic motivates users not to sell coins so that their price does not decrease.
• Exclusive airdrops. The name of this tactic confirms that it is available to a limited number of users. Developers can reward subscribers or community members. To participate in the distribution, customers must register and follow the updates.
• Bounty airdrops. In such a system, participants can receive assets after performing specified actions, including publications on social networks, attracting other users, writing texts for blogs, etc. After checking the task, the user receives his portion of tokens.
• Hard fork airdrop cryptocurrency. A hard fork is a division of a blockchain into multiple branches. If a product passes this procedure, participants can receive novel versions of tokens proportional to their holdings in the old chain. This process helps advertise the improved version of the decentralized database system.

Each category has its benefits and disadvantages, so it is crucial to understand its specifics before launching or participating in a project.

How Crypto Airdrops Work?

Such a market tactic has a clear structure and includes several stages. Below, we will analyze how do crypto airdrops work.

• Announcement. The firm announces the distribution via the site, social networks, email newsletters, and other resources. It is critical to describe in advance who can claim to receive coins. As a rule, the criteria include storing a specified sum of digital money or performing several actions.
• Registration. A user who wants to participate in the procedure must register by specifying the personal data of the crypto wallet and performing the specified actions, e.g., joining the Telegram channel or other social networks.
• Verification. When registration is complete, the developer checks the rights of the participants so that the assets go to real people. During the verification, specialists study whether the candidates have the required virtual currency in their crypto wallets and whether they have completed the tasks.
• Distribution. Next, specialists distribute the batch of assets among all participants. This procedure is usually automated with smart contracts to ensure fairness and transparency.
• Request for assets. Sometimes, coins are automatically credited to users’ wallets, while in other cases, participants need to send an additional request.

Often, the conditions of the coin grant specify how exactly project members how to get crypto airdrops and how to spend them.

Advantages and Disadvantages of Cryptocurrency Airdrops

Airdrops are becoming more popular as decentralized finance (DeFi) and non-fungible token (NFT) projects develop. Let’s analyze the main profits of such a distribution.

• Quick access to novel crypto assets. They allow you to work with non-standard tokens without having to buy them. Such access attracts people who want to expand their virtual money portfolio instantly.
• Promotion of cheap projects. It is an effective promotion algorithm for blockchain startups. By transferring part of the assets for free, such projects attract people and form a community around new coins. The company does not need to spend huge sums on promotion.
• Maximum loyalty. With airdrops, companies can increase loyalty among members. Once users receive free assets, they become interested in the project’s prosperity and provide its full support.

Despite the many benefits of such an asset allocation, it is crucial to remember their weaknesses.

• Difficulty in choosing the volume. The number of tokens available for free depends on your goals and financial capabilities. A small batch may provide low promotion efficiency, while too many may result in assets running out quickly.
• Limited loyalty. Some users receive assets and immediately sell them, not interested in the product’s future fate. The DeFi platform may not get the desired engagement even with the correct distribution.
• Such a strategy can reduce the price of tokens. If many customers decide to sell coins in one period, this may significantly reduce the cost of tokens, worsening the situation for investors and the development team.

Before implementing such a marketing tactic, evaluate your digital product’s pros and cons.

Crypto Airdrops vs. Initial Coin Offerings (ICO)

Some users do not see the difference between Crypto airdrops and initial coin offering (ICO). Both processes often occur when a project is launched, and their main goal is to introduce the audience to a new coin.

As a rule, crypto airdrops do not involve costs, while ICOs often become available after transactions are completed. Although such an operation can reward participants by allowing them to purchase assets at a discount, investors are expected to buy coins, while airdrops do not require payment. When releasing an ICO, projects focus on venture capitalists.

A significant difference is related to the target audience. ICOs allow you to attract large investors who are ready to invest substantial amounts in promising projects. Such participants consider working with ICOs to diversify risks. Simultaneously, airdrops will enable you to inform small traders about new opportunities. Usually, participants do not receive tangible profits from a limited drop, which motivates them to perform operations with virtual money.

Why Host a Crypto Airdrop?

Today, many projects prefer the airdrop advertising algorithm. Let’s discuss the main reasons for its popularity.

• Audience expansion. Free token distribution can increase your customer base. Such a gift lets you engage market participants who would otherwise ignore your digital solution.
• Motivation for use. If customers have received free assets, this encourages them to work with your coins. Having assessed the strengths of your project, such users can become your partners in the long term.
• Positive impact on liquidity. Offering assets to many interested parties creates additional opportunities for listing on the exchange and increases liquidity.

Airdrops are a good chance for new users to get acquainted with digital money. They allow them to collect a package of assets and study more about the product.

How to Make Crypto Airdrop: Key Steps

Now that we realize what is a crypto airdrop, it’s important to understand how to organize the procedure. We’ve created a complete guide on how to implement a campaign.

• Identify your aims. Consider your demographic and what you want to achieve, e.g., community development or increased product awareness. Let’s say you try to find counterparties for a long-term relationship. Then, you should distribute assets among community members rather than handing them out to everyone.
• Determine the optimal airdrop category. We’ve described the primary categories of strategies above, each with its characteristics and suitable for solving different problems.
• Distribute and transfer tokens. Once you’ve chosen the campaign category, estimate how many tokens you will give away and select a distribution algorithm. Balance the procedure to prevent excess, which may lead to a drop in value after the marketing campaign ends.
• Build your Airdrop smart contract. Without a smart contract, it’s impossible to execute an airdrop successfully. If you choose famous blockchains, including Ethereum or BSC, implementing a smart contract will automate a fair and transparent distribution of tokens. Safety and verified smart contracts prevent fraud and reduce gas fees.
• Choose distribution criteria. Consider what people need to do to receive your assets, e.g., buy cryptocurrency, join the community, or attract new people. Such selection allows you to filter out bots and scammers.
• Tell the world about your airdrop. We recommend utilizing advanced advertising channels like X, Reddit, Telegram, etc. You may also involve famous personalities in the crypto field to increase trust among the audience.
• Transfer tokens to members. If the airdrop is over, it’s time to reward customers with tokens. You may automate the procedure with smart contracts or transfer them manually if you work with a small audience. Implement security systems so that the assets go to real people.

Crypto airdrops are instruments for businesses to inform their audience about their tokens and coins. This marketing strategy allows them to raise the liquidity of assets by sending them to thousands of wallets. Although many users view airdrops as free money, they must know their potential risks.