What Is A Crypto Airdrop — Explained

Dive deep into the world of crypto giveaways, their various types, workings, and objectives. Learn about notable airdrops in the crypto space and explore the pros and cons associated with such events in this guide.

Have you ever wondered to yourself: “What is a cryptocurrency or NFT airdrop?” In this article, we’ll discuss the meaning of the term “crypto airdrop”. We’ll also examine the impact of a crypto giveaway in the fast-growing digital realm.

Types of Crypto Airdrops

Standard airdrop

A free crypto airdrop promoting a new project, platform, or feature. By giving away tokens, the project team generates interest and engagement.

Bounty airdrop

An airdrop rewarding participants for completing specific tasks such as promoting the project on social media platforms or reporting bugs.

Holder airdrop

An airdrop distributed on the basis of users’ existing coin holdings. The more tokens a user holds, the more they receive from the airdrop.

Hard fork airdrop

Hard fork airdrops occur when a blockchain undergoes a split, creating a new chain with its own native token. Holders of the original token receive an equivalent amount of the new token.

Swap airdropped tokens on YetAnotherDeFi now!

How Do Crypto Airdrops Work?

Executing a successful crypto airdrop requires a carefully planned public campaign. Project teams usually use forums and social media platforms, like Discord and Twitter, to spread the word. They also use influencers to promote their airdrop event. The goal is to create a buzz around the project or a newly launched feature and attract attention to the airdropped tokens.

What Is the Point of a Crypto Airdrop?

“Crypto airdrops are a great way we help new projects stand out and increase awareness rapidly,” said Tim Haldorson, CEO of Lunar Strategy, highlighting the importance of airdrops in the crypto ecosystem. Airdrops have many purposes. They create hype, attract users, and determine a good connection with a community. They also help distribute tokens more evenly among potential users, ensuring a wider adoption of the platform or feature.

Notable Crypto Airdrops

Bitcoin Cash

Bitcoin Cash emerged from a hard fork of the Bitcoin blockchain in August 2017, and Bitcoin holders received an equivalent amount of Bitcoin Cash tokens.

Stellar

In 2019, the Stellar Development Foundation airdropped 50 billion XLM tokens to users of Keybase, a messaging and file-sharing app.

Uniswap

Uniswap airdropped 400 UNI tokens to every user who had interacted with the platform before a specific date in 2020.

Pros and Cons of Crypto Airdrops

Pros

• A great way to earn free crypto! Here is YetAnotherDeFi’s blog on some more ways to earn free crypto.
• One of the best ways to enhance publicity and awareness for the project.
• Encouraging users to hold tokens or participate actively in the project.

Cons

• Uncertainty surrounding regulation and crypto airdrop airdrops.
• The possibility of attracting users who are only interested in the free tokens, rather than supporting the project long-term.

Conclusion

Crypto airdrops are an effective way to create buzz and attract users to a project. The YetAnotherDeFi (YAD) DEX aggregator can help users who receive airdropped tokens capitalize on their holdings with quick swaps and low fees. Use the YAD aggregator now or simply learn how it works, since you’re going to need it in the future!