If you frequent cryptocurrency and NFT discussion forums, you must have heard of the term “airdrop”. It is primarily a marketing strategy used by cryptocurrency projects to increase user engagement and raise awareness of cryptocurrencies. Crypto Airdrops are free cryptographic tokens, or NFTs, that people get for playing out unambiguous activities. Such as liking, retweeting, or commenting on a tweet.
Airdrop and how to get it?
Crypto companies are always finding new ways to promote their projects. What better way to do that than handing out free crypto tokens to potential customers?
These airdrops usually occur on Twitter but are also standard on Discord. Where cryptographic tokens or NFTs are dropped into the cryptographic wallets of “whitelists” or people, who supported the project from the beginning.
Each airdrop has different selection criteria and is usually determined by the team behind it. The most common way to get an airdrop is by participating in Twitter threads.
To increase engagement, cryptocurrency startups often distribute cryptocurrency tokens or NFTs to people who like, retweet, or comment on their tweets.
As you can imagine, these tweets are quickly gaining popularity, and since giveaways are reserved for a limited number of people, not everyone wins.
If you’re not active in the community, you’re missing out on most of the airdrops that happen on Twitter.
On Discord, you must be active in the NFT or crypto project group to qualify for crypto airdrops. Many cryptos and NFT projects send crypto/NFTs over the air to the people who keep the server up and popularize the project on other platforms.
Are all airdrops legit?
Every company can’t distribute free cryptographic tokens to hundreds and sometimes thousands of people, which means that not every crypto airdrop you see online is legit.
The biggest red flag is when a company asks you to invest in their project to qualify for an airdrop. An airdrop must be completely free. You don’t have to pay anything to be eligible to receive it.
It would be best if you always did thorough research when deciding to pursue or invest in any crypto project. You are unlikely to be scammed by a crypto startup backed by other legitimate companies. As long as you don’t pay anything, you’re on the safe side.
Airdrops are sometimes part of a bomb-and-drop scheme. Cryptocurrency companies will throw tokens at hundreds of people, and as the token gains momentum and its price rises, scammers will sell their tickets. This causes the price to drop, causing so-called exchange holders to sell their tokens at a loss.
What can you do with airdrops?
When you launch a cryptocurrency, you can either sell it for a profit or hold it until its price rises. If it’s an NFT airdrop, you can use it to join the project’s community, participate in exclusive activities, or convert it into profit.
One of the most popular and exclusive NFT collections, CryptoPunks, was made available to the public for free when it was launched in 2017. Today, its minimum price is 67.45 ETH. You can see why it would be profitable to have an NFT that you get for free.
Conclusion
Crypto airdrops are a common marketing tactic in the cryptocurrency world that cryptocurrency companies use to increase user engagement and bring more people into the Web 3.0 space.
If you’ve launched cryptocurrencies or an NFT, you might be better off holding it until its price goes up, because they could be the next CryptoPunks!
