Crypto Airdrops: Everything You Need to Know

Crypto adoption has increased rapidly within the last 10 years. Today, an estimated 45 million Americans own at least one token and 420 million cryptocurrency users worldwide. But while most people prefer to talk about Bitcoin and Ethereum, thousands of different tokens exist.

Airdrops serve as an effective strategy to generate excitement for projects while also providing rewards to current token holders. Within this guide, we delve into the realm of crypto drops, exploring their origins and the diverse array of free crypto airdrops you can actively engage in, such as the projects with FreeNFT.com, sign up now to receive emails about all upcoming projects.

What are Crypto Airdrops?

Crypto airdrops originated in the early 2010s. Initially, it was little more than a trolling strategy where anonymous Internet users would send unsolicited photos to random people.

But the web3 industry understood the potential of this strategy, and it became a facet of cryptocurrency projects. Creators discovered they could use free airdrops to drum up excitement for upcoming projects and raise awareness of their platforms.

As a guerilla marketing strategy, blockchain project creators directly deposit crypto tokens into a user’s wallet. It’s a tactic that can get startup companies and platforms off to a rapid start. For users, this is the equivalent of receiving a surprise birthday present.

Unlike the instant airdrops used by trolls, most companies understand that random users do not appreciate unsolicited tokens. Instead, most airdrops involve registering with the giveaway. The registration process may be as simple as signing up or carrying out an action like following a Twitter account.

This concept can yield remarkable results. For example, LooksRare managed to cash out $30 million with its first airdrop and provided a vital funding conduit for this startup.

In some cases, free airdrops may reward existing users who have supported a project. For example, in the Ethereum Name Service airdrop of 2021, ENS domain holders received tokens based on how long their domains had existed.

Types of Cryptocurrency Airdrops

Three distinct types of airdrop exist. While there are some niche airdrops, such as “Exclusive Airdrops,” these are technically a sub-variant of one of the three primary airdrop crypto types.

Here is what you need to know about the three primary airdrop types.

Standard Airdrop

Within a standard airdrop, tokens are delivered for free to registered users. All you have to do is create an account and provide your public wallet address.

Typically, these drops operate on a first-come, first-served basis, so if there are a limited number of tokens, you must register early to stand a chance of getting a token.

Since anyone can join, this is essentially an option to add free crypto to your wallet.

Bounty Airdrop

Bounty drops require you to complete a task to become eligible for a token. Depending on the project, some may be as simple as following a social media account or as time-consuming as becoming an active member of a forum or Discord channel.

These are becoming more popular, and the amount of work involved will typically correlate to the perceived value of the crypto token on offer.

Holder Airdrop

Holder drops allow you to receive cryptocurrency tokens if you already hold a certain number of tokens in a related cryptocurrency.

These drops are used to reward existing users for their loyalty. For example, a brand or community may offer these tokens to those holding a first-anniversary membership token.

Typically, these drops will reward more tokens if you already hold a substantial number in another cryptocurrency.

How Do Crypto Airdrops Work?

Crypto drops are distribution methods specific to the cryptocurrency movement. Most of these drops will begin with a promotional event and a particular date when all eligible users will receive their tokens.

The first step will be registering and connecting your wallet to the platform. You may also need to carry out other tasks to qualify.

Once eligible, you will receive your tokens in your wallet. It really is that simple!

Let’s examine some popular airdrop examples to illustrate how it works.

Auroracoin

The first-ever significant airdrop was Auroracoin, developed in response to the 2008 Financial Crisis in Iceland. It was hoped that the coin would replace Iceland’s native fiat currency.

In 2014, every Icelandic citizen received 31.8 AUR based on their ID card number. While 10.5 million coins were airdropped, just 281,000 were claimed at time of press. Unfortunately, within 24 hours, the value of Auroracoin fell by 50% against Bitcoin, and within several months, the coin became worthless and sank without a trace.

While the project fell short of its intended goals it is perceived as widely responsible for revolutionizing the airdrop concept within the crypto space due to its popularity.

Uniswap

One of the most significant drops of all time was Ethereum’s most popular DEX, Uniswap. Any wallet that showed an interaction with the Uniswap protocol before September 2020 could receive 400 UNI tokens for free as part of an airdrop.

These UNI tokens were worth $1,400 then, making it one of the more costly airdrops for its time. To further this initiative, Uniswap set aside $350 million to fund this airdrop campaign.

Monetary costs aside, Uniswap changed the game because it was one of the first projects to distribute rewards retroactively. Other high profile projects have since replicated this effort with crypto and NFTs, including the Bored Ape Yacht Club.

Risks and Rewards of Crypto Airdrops

Obtaining a free airdrop token is an excellent way of boosting your existing portfolio of tokens with minimal effort and no costs. In many cases, joining a project at its earliest stages could make you eligible for other rewards in the future, including holder drops.

However, it is essential to consider that investing excessive time in relentlessly scouring for upcoming airdrops may not always be the most productive use of your time. It is crucial to acknowledge that the future value or practicality of a token, even after six months, cannot be guaranteed, as the ease of token creation allows anyone to create tokens without stringent criteria. Therefore, it is prudent to strike a balance and allocate your time wisely when engaging with airdrops.

Additionally, you must be aware of different airdrop scams, such as:

• Airdrop phishing
• Rug Pulls
• Identity fraud

However, these scams are relatively easy to avoid by researching the party behind the airdrop, never putting up capital to receive an airdrop, and doing your research before attaching your wallet to the project’s website.

Overall, crypto drops are relatively risk-free and provide a fantastic way to obtain unique tokens without spending a single dollar or dedicating more than a few minutes of your time.

How to Find Out About Upcoming Airdrops

Are you searching for NFT drops but feeling lost on where to start?

Relying on Google search and social media, such as Twitter, for the latest information on upcoming NFT drops can be a tedious and risky endeavor, potentially exposing you to scams. It’s time to explore a more efficient and secure approach.

Introducing FreeNFT.com, your trusted NFT calendar and go to source for discovering the freshest NFT drops from reputable creators. With our dedication to transparency and thorough curation, you can trust that we’ve taken care of the research for you. FreeNFT streamlines the process, allowing you to quickly find and join NFT projects that align with your interests. Plus, once you’ve created an account, you can easily sign up to receive timely notifications directly from our NFT calendar. Utilize FreeNFT as your go-to NFT calendar, effortlessly staying informed about upcoming NFT drops.

This is why platforms like FreeNFT.com are ideal for getting word on the latest NFT drops offered by trustworthy creators. Since we are run by a reliable team that prides itself on transparency, you know you are registering with a platform that does all the due diligence for you.

Using a central hub like FreeNFT, you can get notified of upcoming NFT drops that might interest you with minimal hassle. Once you have joined an existing project, you can also sign up to receive their partners' notifications of holder drops or crypto airdrops.

If you are ready to obtain your free NFTs, sign up or if you are a developer contact the FreeNFT team now or check out developers.freenft.com.