Cryptocurrency Airdrop: Types and Uses
A crypto airdrop is a type of marketing strategy used by cryptocurrency entrepreneurs. It entails giving tokens to current crypto traders in exchange for a minor promotional service or by giving them free tokens to put in their wallets.
Crypto airdrops could be used to promote a business and draw additional users to the platform as a reward for subscribing to a newsletter or following the project on social media.
Companies, brands, and entrepreneurs frequently utilise airdrops to reward their new and existing holders, investors, and collectors. Depending on how much they invested in or helped a particular project, these individuals may receive tokens, currencies, or assets for free.
New projects may airdrop crypto into your wallet as part of an initial offering. Additionally, platforms may choose to airdrop governance tokens. Governance tokens have a monetary value as well as voting rights that allow owners to have a say in important project decisions.
The Various Types of Airdrops
Crypto projects may offer free cryptocurrency in different circumstances, but their primary goal is to encourage users. You will encounter the following types of airdrops most frequently:
(1) Standard airdrop (2) Bounty airdrop (3) Exclusive airdrop (4) Holder airdrop
Standard Airdrop: This is when a project transfers an amount of native coin or token into existing wallets as a marketing strategy. It’s usually to promote the brand and encourage more people to adopt the asset, often during their initial coin offering (ICO). Generally, all you need to do is sign up for an account with the new project, and provide your wallet address during the distribution event.
Bounty Airdrop: This requires prospective recipients to participate in some promotional activities to acquire the digital asset. These actions consist of: (i) tweeting about the blockchain project on Twitter or other social media sites; (ii) subscribing to the project’s email newsletter; and (iii) signing up for a forum to debate and get involved in the project. In comparison to a regular airdrop, a bounty airdrop requires a little bit more work, but the tasks are often not difficult.
Exclusive Airdrop: As the name suggests, this is a limited airdrop for a group of people that follow an airdrop aggregator to receive cryptocurrency coins through an exclusive airdrop. These third-party websites disseminate information about promising cryptocurrency projects and their future airdrop occasions.
Holder Airdrop: People who have a certain amount of another cryptocurrency in their wallets are eligible for this holder airdrop. Typically, a crypto project will take a snapshot of all cryptocurrency holdings on a particular date and then allow users to claim an airdrop depending on their position in the market at that moment.
Bottom Line
To take part in an airdrop program, you may be required in some situations to prove your identity through know-your-customer (KYC) verification.
While some airdrops are legitimate, others have been accused of being dishonest or deceptive. This means users have to be cautious where they receive airdrops to avoid giving scammers access to their private information.
Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
