Companies give free tokens or coins to promote their cryptocurrency. It is used to promote a new project, reward loyal users, or incentivize participation in a particular blockchain ecosystem.
Airdrop means companies giving free tokens or coins to promote their cryptocurrency. It is used to promote a new project, reward loyal users, or incentivize participation in a particular blockchain ecosystem.
What is an Airdrop?
It refers back to the practice of dispensing free tokens or cryptocurrencies to a delegated group, regularly as part of a promotional or community-building strategy. They may have exceptional purposes, consisting of profitable existing token holders, attracting new users, or increasing the attention of an undertaking. To participate, recipients commonly want to satisfy specific criteria, and they have to comply with supplied commands to say the airdropped tokens.
Key aspects:
1. Types of Crypto Airdrops:
Standard : Users receive tokens by simply signing up for an account.
Bounty : Users complete promotional tasks such as following social media accounts, subscribing to newsletters, or interacting with a project’s content.
Holder : Users who already hold a certain amount of tokens are rewarded.
Hard Fork : This occurs when a blockchain protocol splits, and new coins are airdropped to existing token holders.
Exclusive : Rewards users based on their level of engagement with the project rather than their wallet size.
Raffle : Winners are selected randomly from those participating in the airdrop campaign.
2. How Crypto Airdrops Work:
3. Purposе of Crypto Airdrops:
– It aims to grow a projеct’s usеr basе, gеnеratе еxcitеmеnt, and incеntivizе usеrs to lеarn morе about thе projеct.
– They can target early supporters, existing community members, or users of competing platforms.
– The goal is to provide long-term value to recipients and encourage them to contribute to the project.
Notable Crypto Airdrops:
– Bitcoin Cash: Distributed a hard fork airdrop in 2017, giving users 1 Bitcoin Cash (BCH) for each Bitcoin (BTC) owned.
– Stellar: Airdropped $125 million worth of Stellar lumens (XLM) to Blockchain Wallet users in 2018.- Uniswap: Airdropped Uniswap tokens (UNI) to over 250,000 early users in 2020.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
A new image showing the alleged XRP Rich List is making the rounds on social…
Cardano founder Charles Hoskinson has responded to growing questions about why ADA’s price is not…
Russia’s largest bank, Sberbank, has taken a new step into the crypto space by issuing…
Bitcoin saw a decent price increase today, even as weekend trading remained quiet. Market activity…
The Uniswap price has gained significant attention in the past few days following the rollout…
Finding a crypto asset that can deliver near-term momentum while also holding real long-term value…
