{"id":62513,"date":"2022-09-30T15:25:01","date_gmt":"2022-09-30T09:55:01","guid":{"rendered":"https:\/\/mudrex.com\/blog\/?p=62513"},"modified":"2024-03-24T16:28:35","modified_gmt":"2024-03-24T16:28:35","slug":"what-is-airdrop-in-crypto","status":"publish","type":"post","link":"https:\/\/mudrex.com\/learn\/what-is-airdrop-in-crypto\/","title":{"rendered":"What Is Airdrop in Crypto and How to Get Crypto Airdrop?"},"content":{"rendered":"\n<p>Have you ever visited a shopping mall and got offered a food product to try for free? Who doesn\u2019t like free food, right? So, you may have tested it and may have got tempted to or would have actually purchased it! Well, there you fell for their marketing tactic. Businesses often offer free products or services to attract consumers to make a purchase.&nbsp;<\/p>\n\n\n\n<p>This simple explanation is enough to give you a brief on \u2013 what is airdrop in crypto! While the product line here is not available in malls, it is a great tactic used by cryptocurrency exchanges, companies, or startups to attract investors. Investors, in return, get cryptos without paying a single penny.&nbsp;<\/p>\n\n\n\n<p>Interested in getting free cryptos? Come and take this journey with us to learn what cryptocurrency airdrop is and how to claim an airdrop.&nbsp;<\/p>\n\n\n\n<p><em>P.S. <a href=\"https:\/\/mudrex.onelink.me\/XB4d\/z4a35e1g\" target=\"_blank\" rel=\"nofollow noopener\">Download Mudrex<\/a> and start investing in crypto through <a href=\"https:\/\/mudrex.com\/blog\/introducing-mudrex-coinsets-crypto-baskets\/\">Coin Sets<\/a>!<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-airdrop-in-crypto\" style=\"font-size:20px\">What Is Airdrop in Crypto?<\/h2>\n\n\n\n<p>Crypto or blockchain startups use airdrops as a marketing tactic to spread awareness about their tokens, NFTs, etc., among investors by offering them to users for free. It is the same as a salon offering a free makeover or a brand offering you trial products.&nbsp;<\/p>\n\n\n\n<p>This helps the startups or companies build their own communities and generate value for their new tokens, and fund their projects. However, airdrops are not available to just anyone. You must be a member of a certain <a href=\"https:\/\/mudrex.com\/blog\/what-is-blockchain-technology\/\">blockchain<\/a> network or holding certain cryptos such as Bitcoin to be eligible for a <a href=\"https:\/\/mudrex.com\/learn\/top-crypto-airdrops-of-2024\/\">crypto airdrop<\/a>.&nbsp;<\/p>\n\n\n\n<p>Additionally, some crypto airdrops also require you to perform certain tasks. For instance:.&nbsp;<\/p>\n\n\n\n<ul>\n<li>Following the crypto company or start-up\u2019s page on social media platforms.&nbsp;<\/li>\n\n\n\n<li>Doing a shout-out about the airdrop on social media platforms.<\/li>\n\n\n\n<li>Sign up on the official website and give consent to receive newsletters, updates, etc.&nbsp;<\/li>\n\n\n\n<li>Conducting a transaction using a particular <a href=\"https:\/\/mudrex.com\/learn\/how-to-choose-the-right-crypto-wallet\/\">crypto wallet<\/a> or platform.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Cryptocurrency airdrops are typically done for newly mined cryptos and thus are a great way to spread the word about the same. You can find details on cryptocurrency airdrops on the company&#8217;s website or social media platform, or exchanges. You can also use a third-party tracker to get updates on airdrops.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-crypto-airdrops-work\" style=\"font-size:20px\">How Do Crypto Airdrops Work?<\/h2>\n\n\n\n<p>Now that it is clear what airdrop is in crypto, let\u2019s see how it works with some real examples.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-btt-airdrop\" style=\"font-size:17px\">1. BTT airdrop<\/h3>\n\n\n\n<p>We said that you might need to hold certain cryptos in some crypto airdrops. This example is on a similar line. Every <a href=\"https:\/\/mudrex.com\/blog\/what-is-tron\/\">Tron<\/a> token (TRX) holder will likely get BitTorrent (BTT) airdrops non-stop until February 2025.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-opendao-s-sos-airdrop\" style=\"font-size:17px\">2. OpenDao\u2019s SOS airdrop<\/h3>\n\n\n\n<p>This airdrop benefited <a href=\"https:\/\/mudrex.com\/blog\/what-is-nft\/\">NFT<\/a> creators and holders transacting on the <a href=\"https:\/\/mudrex.com\/blog\/glossary\/opensea\/\">OpenSea<\/a> NFT platform. To get this airdrop, the prerequisite was to visit its official website and click on the \u201cinitiate claim\u201d option for the same.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-stellar-lumens-xlm-and-bitcoin-cash-bch-airdrops\" style=\"font-size:17px\">3. Stellar Lumens (XLM) and Bitcoin Cash (BCH) airdrops<\/h3>\n\n\n\n<p>In 2016 and 2017, XLM and BCH were given in airdrops to all Bitcoin owners. For each Bitcoin, one Bitcoin Cash was given. This resulted in Bitcoin holders getting huge profits during the BCH price hike.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-1inch-airdrop\" style=\"font-size:17px\">4. 1inch airdrop<\/h3>\n\n\n\n<p>In 2020, 1inch Exchange gave around <a href=\"https:\/\/coinmarketcap.com\/alexandria\/article\/what-are-crypto-airdrops\" target=\"_blank\" rel=\"nofollow noopener\">90 million<\/a> 1INCH airdrop tokens to 55,000 users that had traded a minimum of $20 or 4 trades before the day of the event.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-types-of-airdrops\" style=\"font-size:20px\">What Are the Types of Airdrops?<\/h2>\n\n\n\n<p>Here are three different types of crypto airdrops currently popular in the market.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-standard-airdrop\" style=\"font-size:17px\">1. Standard airdrop<\/h3>\n\n\n\n<p>This is one of the simplest ways to get free cryptos in an airdrop. This airdrop type has no prerequisites like transactions or holding particular cryptos. All you require is a wallet, and provide that wallet address for an airdrop claim. Because it is open to almost everyone, this airdrop is likely to be on a first-come, first basis or in a draw. You will get free cryptos in a standard airdrop if you are lucky.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-bounty-airdrop\" style=\"font-size:17px\">2. Bounty airdrop<\/h3>\n\n\n\n<p>This airdrop comes with certain tasks you need to fulfill to be eligible to receive free tokens. The tasks are not challenging, but you do need to put time and energy into undertaking the tasks, so we can&#8217;t call it completely free. You can also get a referral bonus if that is an option for bringing more crypto investors and helping the company spread awareness about its crypto project.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-holder-airdrop\" style=\"font-size:17px\">3. Holder airdrop<\/h3>\n\n\n\n<p>In a holder airdrop, you can get free cryptos by holding particular tokens till a certain date. This airdrop automatically gives cryptos to users on the basis of their holding number. Possibly, those with higher tokens may receive the most benefit in this airdrop.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefits-and-drawbacks-of-airdrops-for-cryptocurrencies\" style=\"font-size:20px\">Benefits and Drawbacks of Airdrops for Cryptocurrencies&nbsp;<\/h2>\n\n\n\n<p>Let\u2019s get into the pros and cons of crypto airdrops to help you make an informed decision if you wish to participate in them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-of-crypto-airdrops\" style=\"font-size:17px\">Benefits of crypto airdrops<\/h3>\n\n\n\n<ul>\n<li>For companies\/start-ups, airdrops are a great way to spread awareness about the project.&nbsp;<\/li>\n\n\n\n<li>If you are an early adopter of particular crypto that offers airdrops, you are in for a treat, as you are likely to get free cryptos in airdrops.&nbsp;<\/li>\n\n\n\n<li>You get free cryptos, and the profit is yours if there is any value appreciation.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-of-crypto-airdrops\" style=\"font-size:17px\">Drawbacks of crypto airdrops<\/h3>\n\n\n\n<ul>\n<li>A major challenge of receiving free tokens via an airdrop is being prone to airdrop scams as you have to provide details of your wallet, open an account, or transact on exchanges that may not be credible.&nbsp;&nbsp;<\/li>\n\n\n\n<li>It is hard to identify which crypto project is legitimate, especially if you focus on staking particular crypto to be eligible to participate in airdrops.&nbsp;<\/li>\n\n\n\n<li>There are chances of bias in distributing airdrops. For example, if a project rewards a miner based on the effort he puts in or the number of tokens he holds, other miners are at a disadvantage.&nbsp;<\/li>\n\n\n\n<li>Airdrops may not be as easily redeemable due to a lack of liquidity. Not all airdrops are successful, and thus you need to do your homework before participating.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-do-crypto-projects-do-airdrops\" style=\"font-size:20px\">Why Do Crypto Projects Do Airdrops?<\/h2>\n\n\n\n<p>There are many motivations for a platform to offer airdrops. We have listed the top three below.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-spread-awareness\" style=\"font-size:17px\">1. Spread awareness<\/h3>\n\n\n\n<p>This is a major cause for which a company or a start-up may undertake an airdrop event. When a crypto project is new, it lacks traction in the market. By offering free tokens, a buzz around the crypto project can be created, which benefits the company undertaking the project.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-attract-investors\" style=\"font-size:17px\">2. Attract investors<\/h3>\n\n\n\n<p>Who doesn\u2019t like free stuff? Airdrops are a great way to offer free cryptos and attract investors. The starting cost for giving free tokens gets compensated as the value of the project rises. It gives the investors a motive to trade, and companies achieve their purpose.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-rewarding-and-understanding-the-community\" style=\"font-size:17px\">3. Rewarding and understanding the community<\/h3>\n\n\n\n<p>Participants must fill in forms and provide their basic data to claim an airdrop. Companies gather this data to offer targeted products. Also, airdrops help keep investors loyal to one platform and compensate them for their trust.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-ways-to-participate-in-an-airdrop-and-how-to-claim-my-airdrop-token\" style=\"font-size:20px\">What Are the Ways to Participate in an Airdrop, and How to Claim My Airdrop Token?<\/h2>\n\n\n\n<p>We have already discussed the types of airdrops through which you can participate to claim free tokens. You can find the details for eligibility on a company\u2019s website and social media. So, keep an eye out.&nbsp;<\/p>\n\n\n\n<p>Alternatively, you can <a href=\"https:\/\/mudrex.com\/blog\/glossary\/do-your-own-research-dyor\/\">do your own research<\/a> to find new airdrops to participate in, i.e., search for #newairdrop on Twitter. You can also join the different communities or chat groups to stay updated on the upcoming airdrops and participate in them.&nbsp;<\/p>\n\n\n\n<p>Once you fulfill the eligibility criteria and get selected for the reward, your cryptos will automatically be credited to your crypto wallet.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-avoid-airdrop-scams\" style=\"font-size:20px\">How to Avoid Airdrop Scams?<\/h2>\n\n\n\n<p>To keep yourself at bay from airdrop scams, you must be cautious. If something is too good to be true, question every aspect of it. For participating in an airdrop, if you have to fund the project in any way, consider it a red flag.&nbsp;<\/p>\n\n\n\n<p>There are likely to be dusting attacks once you participate in a crypto airdrop where you may receive a small amount of crypto transfer in your wallet. This makes your public wallet address accessible to the crypto platform, and if it is not credible, your wallet is likely to be exposed to fraudsters. Thus, enter any airdrop events after conducting research on the platform offering it.&nbsp;<\/p>\n\n\n\n<p>While there are no options but to give basic details to register for airdrops, you can definitely take precautionary steps. This includes <a href=\"https:\/\/mudrex.com\/blog\/how-to-protect-your-cryptocurrency-wallet-from-hackers\/\">opening a separate wallet for airdrops<\/a> if you have a heavy number of cryptos in your existing wallet. This will help you save your investments, and you can freely participate in airdrops.&nbsp;<\/p>\n\n\n\n<p>Apart from that, keep your senses open and trust your gut feelings to avoid phishing and hacking scams.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\" style=\"font-size:20px\">Conclusion&nbsp;<\/h2>\n\n\n\n<p>We hope this article has cleared up the concept of \u2013 what is airdrop in cryptos for you.&nbsp;<\/p>\n\n\n\n<p>Airdrops are an amazing way to get your hands on new cryptocurrencies without investing your money. It also helps companies spread awareness about their projects and attract new investors. As tempting as this free crypto tactic is, be aware of where you share your information and which assets you add to your portfolio as an investor.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs\" style=\"font-size:20px\">FAQs<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-what-was-the-first-crypto-airdrop\" style=\"font-size:17px\">1. What was the first crypto airdrop?<\/h3>\n\n\n\n<p>The first ever crypto airdrop was AuroraCoin (AUR), launched in 2014. It was launched with the intention of becoming the national crypto of Iceland. During this airdrop launch, all the residents of Iceland that had given their national IDs got 31.8 AuroraCoin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-can-crypto-airdrops-make-me-money\" style=\"font-size:17px\">2. Can crypto airdrops make me money?<\/h3>\n\n\n\n<p>It is challenging to make money by receiving cryptos in airdrops in the short term. Airdrops intend to spread awareness of crypto projects. These cryptos may lack liquidity, and you may find it difficult to redeem them in the open market. However, if these cryptos become popular, you can make money in the long run.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-is-airdropping-in-cryptos-safe\" style=\"font-size:17px\">3. Is airdropping in cryptos safe?<\/h3>\n\n\n\n<p>Airdropping in cryptos is as safe as you make it. If you make sure that the crypto platform\/project offering the airdrop is legitimate by conducting your own research, the airdrop is safe. You should always research before investing, even if the investment doesn&#8217;t cost you cash, as it will have an impact on your portfolio.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you ever visited a shopping mall and got offered a food product to try for free? Who doesn\u2019t like free food, right? So, you may have tested it and may have got tempted to or would have actually purchased it! Well, there you fell for their marketing tactic. Businesses often offer free products or [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_import_markdown_pro_load_document_selector":0,"_import_markdown_pro_submit_text_textarea":"","footnotes":""},"categories":[1079],"tags":[1197,1198,1199,517,1200,1201,1202,1110,750,519,1203,1204,1205,655,80],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Crypto Airdrop and How Does It Work? | Mudrex Blog<\/title>\n<meta name=\"description\" content=\"What is airdrop in crypto? It is a marketing tactic of giving away free cryptos to users to gain initial traction. 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