To encourage the marketing of new coins prior to their debut, cryptocurrencies offer airdrops. It promotes the token for adoption and helps people become aware of it. In 2014, airdrops were introduced for the first time by Auroracoin (AUR). Sadly, the project was shelved as its price began to decline. This does not imply that airdrops are a disastrous marketing tactic.
A public distribution or allocation of free digital assets is known as a “airdrop” in the blockchain ecosystem. This type of free giveaway is another type of marketing tactic, usually used by freshly established projects and other active ones to entice investors and token holders to promote and increase token circulation.
Either of the following requirements, or a combination of both requirements, must be satisfied to be eligible for an airdrop. First, a recipient could be required to complete particular actions like becoming a follower on Twitter, retweeting the project’s pinned tweet on their profile, mentioning three or more friends, and liking the pinned tweet. Some may even demand that you stop making compliments.
Second, in order to be eligible for the airdrop, a recipient might need to have a certain amount of the asset or another item in their wallet. This was the situation with the March 2022 ApeNFT airdrop on Binance.
Types of Airdrops
In a normal airdrop, a project distributes a portion of its native token to all active wallets in its community. Promotional chores may occasionally be necessary in order to qualify for this type of airdrop, although they are not always necessary.
Similar to a conventional airdrop is a reward airdrop. However, in order to be eligible for bounty airdrops, prospective receivers must take part in specific marketing campaigns, such as sharing a social media post, as was previously noted. Alternatively, you can sign up for a newsletter, as in the case of the ONT airdrop.
This type of airdrop entails holding a specific token in your wallet at a specified moment in time. It entails a project taking a snapshot of the cryptocurrency wallets of its users on a certain day and time. Typically, the token airdrop size depends on how much each wallet has in its holdings. A recent 9th ApeNFT airdrop on Binance is one instance; only holders of TRX, BTTC, BTTOLD, JST, and WIN were eligible.
All VIPs are invited to this airdrop. Only long-time users or community members who have a background with the specific project or community are eligible for these airdrops. The Uniswap-UNI-token airdrop in September 2020 serves as an illustration of these giveaways. Uniswap distributed 2,500 UNI tokens to its devoted users.
Hard Fork Airdrop
In a hard fork, the protocol of a network is completely altered, making previously valid transactions invalid or vice versa. The chain splits as a result of this hard fork, creating a new blockchain that is based on the first.
When a cryptocurrency hard forks, a brand-new coin is created, therefore all investors who owned the previous coin before to the hard fork will instantly receive an equal number of the brand-new coin in their wallets. As an illustration, consider the 2017 Bitcoin hard fork, in which all BTC holders instantly received an equal amount of Bitcoin Cash-BCH. The new coin of the blockchain that develops from the Bitcoin blockchain is called BCH.
What is an NFT Airdrop?
Most of the time, when an airdrop is stated, some people assume that it is just applicable to cryptocurrencies; this is untrue. NFTs do receive airdrops, however they can be a little different.
Any wallet holding a certain NFT may get the native token of the platform of the originator as part of an NFT airdrop.
- The Loot Adventure NFT airdrop, which awarded 10,000 AGLD (Adventure Gold) to each “Loot NFT” holder in September 2021, serves as an illustration of this.
- The current ApeCoin airdrop, which finished in June 2022, is another illustration. The native token of Bored Ape Yacht Community, 150,000,000 APE, was airdropped to NFT holders of BAYC and MAYC.
To increase the market value of the first collectible or to serve as a stand-alone collectible, an NFT airdrop may additionally provide holders with a second NFT. An illustration is the Bored Ape NFT of BAYC, when all Ape holders received a mutant serum by airdrop in August 2021.
One of the three serums was airdropped to each Bored Ape owner; each of these serums turns Apes into Mutant Apes, which is an altogether different NFT. Each serum owner has two choices: they may either inject their ape with the serum to turn them into Mutant Apes or sell their serum as a collection.
Since most airdrops are promotional tactics, a genuine NFT or cryptocurrency airdrop will never ask you to make a financial commitment.
so DYOR (Do Your Own Research) before participating in any airdrops.