Definition | Airdrop – Giveaway – Free Crypto

in L’universe of cryptocurrenciesthe term “airdrop” refers to the free distribution of a the pole. Multiple units of a cryptocurrency are sent to hundreds or thousands of wallets (portfolios).

Why such free distribution? Usually, the operation aims to make a certain token better known to generate buzz about it. In fact, the stronger the interest in a cryptocurrency, the more its price is able to rise. More people are likely to be interested in it, so the chances are better to see this young currency listed on a major exchange like Coinbase or Binance. Airdrop can therefore be compared to a promotional act: given the intense competition between start-ups in the field, an airdrop can help draw attention to a particular token.

To participate in an airdrop, you must first have a wallet such as MetaMask or Trust Wallet, or even the wallet specific to a particular currency. Usually, this wallet is required to have a minimum amount of tokens of the currency involved.

Sometimes one or more actions are requested from the person who wants to benefit from the airdrop: registration on the currency’s tweeter, retweeting a post…

airdrop stories

Let’s take a look at a few airdrops that have been around since this concept has been around and we’ll get a better idea of ​​what kind of practice this is.

AuroraCoin

The very first airdrop took place on March 25, 2014. Iceland had launched AuroraCoin (AUR) with the aim of making it a national cryptocurrency. Each citizen or resident of the country that submitted their ID number received 31.8 AUR. Thus, a total of 21 million AURs were distributed, i.e. 50% of all tokens put into circulation. In July 2022, one AuroraCoin was worth almost $1.50.

bitcoin cash

In 2017, two of the big supporters of Bitcoin, Roger Ver and Gavin Andresen, have given their support to an important development of Bitcoin, Bitcoin Cash (BCH). It turns out that transaction management was slowed down considerably. BCH proposed to solve this situation by increasing the size of the blocks significantly – eight times larger than the blocks i blockchain bitcoin. Although controversial, BCH was born and a huge airdrop was organized for the occasion: every Bitcoin owner who chose to support Bitcoin Cash received as many BCH in his wallet as he had BTC (Bitcoin). At that time, BCH was worth about 1/10e of BTC and therefore this airdrop had major implications for them. Even today, BCH is in the top 30 cryptocurrencies and its value is equal to 0.005 BTC.

Uniswap

In 2020, the decentralized exchange platform Uniswap wanted to thank those who had trusted it since its launch in November 2018. Almost 250,000 active Uniswap members received 400 UNI, equivalent to more than 1,500 USD per person.

Appearance

On June 16, 2021, LooksRare, a marketplace, offered a high-profile airdrop: everyone who had traded for a total of at least 3 ETH (Ethereum) on The NFT platform OpenSea, and which put up for sale one NFT on LooksRare, was entitled to thousands of LOOK tokens. Admittedly, this token had only minor importance: it was ranked 230e of cryptocurrencies in July 2022. At the same time, its value was still equal to 0.3 dollars, which is not completely insignificant.

El Salvador

byfall 2021, to encourage the people of El Salvador to adopt Bitcoin, the government of that country credited anyone who installed the corresponding wallet with a value of approximately 30 dollars in BTC.

OpenDao December 23, 2021

In December 2021, OpenSea users were rewarded: they could claim SOS tokens in relation to the activity they had had on OpenSea. Over 120,000 wallets have enjoyed it.

Types of air droplets

As we have seen in the above examples, there are several types of airdrop. The most important ones are as follows.

  • Airdrop standard – unparalleled

In this type of airdrop, tokens are distributed for free, without any consideration being requested from the user. As in the case of AuroraCoin, all you need is a wallet to be able to benefit from it. Likewise, when Dapper Labs launched CryptoPunksthese were originally offered for free.

A time factor can be associated with the airdrop: the offer is valid for a certain number of days or until the supply is exhausted. volume of tokens offered. Sometimes a lottery is also associated with such a distribution.

  • Airdrop as reward

This type of airdrop seems to be the most praiseworthy: as in the case of Uniswap or OpenDAO, it aims to thank those who have supported a given project by distributing free tokens. A platform or a currency thus expresses its gratitude to those who kindly supported it in its origin.

  • Airdrop contingent on task completion

In this type of airdrop, tokens are rewarded to those who agree to perform a certain number of specific tasks. E.g :

  • subscribe to the cryptocurrency Tweeter account;
  • share or retweet a tweet;
  • post a message highlighting the benefits of this currency on a social network or forum;
  • create an account on the cryptocurrency platform;
  • subscribe to a newsletter;
  • make a transaction, even a small one, to the cryptocurrency platform or wallet…

In English we talk about Bounty to designate such an air drop.

Does participating in an airdrop involve risks?

At first glance, airdrops only seem to be good. Yet, over the years, this practice has come to arouse suspicion.

First of all, airdrops that are conditional on the performance of a certain number of actions generally represent a waste of time. Sometimes it takes a good ten minutes or more to register on the account Twitter or the forum Disagreement of a currency, post or relay tweets, post blog posts, and also keep the proof of all these actions to ultimately receive a few tokens of a currency whose value is minimal.

Sometimes it happens that airdrop asks to send small amounts of an established currency (Bitcoin, Ethereum, etc.) to an address that will therefore be well filled. However, the person who performed the corresponding operation may disappear from one day to the next, having pocketed his winnings.

It also happens that users receive many free tokens of a new currency, which raises its rating, as it can claim a large number of users. However, once that currency has reached a certain threshold, the originator of the transaction sells his assets and pockets handsome profits while the currency in question collapses – this practice is commonly called ” blanket sweater (pulls the blanket).

Where to find airdrops?

There are various sites with airdrops including airdropalert.com, airdrops.io Where airdropbob.com. Some of them may alert you via email about new opportunities.

In addition, when you are an active user of certain blockchains, it is possible that the corresponding platform will inform you from time to time about the upcoming airdrop.

To avoid risky airdrops, it’s best to do research on the currency in question, even if that means consulting specialized forums on Reddit or Discord and getting information from other users.

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