Crypto airdrop is a distribution of free cryptocurrency tokens to the users. Users need to participate in certain activities to receive crypto airdrops. Activities include but are not limited to promoting the crypto project on social media, participating in the development of the project, or holding other cryptocurrencies.
Cryptocurrency projects dedicate a few percent of their total token supply for airdrops in order to promote their project and gain popularity in the crypto community. Not every crypto project rewards airdrops to its users.
Earnings from crypto airdrops are taxable. The tax rate varies depending on the country you live in.
Requirements for Crypto Airdrops
Cryptocurrency projects require you to follow them on their social media channels. To get the crypto airdrops, you must have the following:
- Twitter account
- Telegram account
- Facebook account
- Discord account
- Cryptocurrency wallet
A cryptocurrency wallet is a must. You have to submit your wallet address in order to receive the airdrop. Metamask is a cryptocurrency wallet that supports crypto airdrops. Learn how to create a Metamask wallet here.
Types of Crypto Airdrops
Community Airdrops
These kinds of airdrops are reserved for active community members. Users are required to follow the project's handle on Twitter and retweet their pinned posts. Join their channels and groups on Telegram. Follow their pages on Facebook and Medium, etc. Some projects may also ask to sign up on their website or subscribe to their newsletter to receive the airdrop.
Ontology airdropped 1000 ONT to those who subscribed to their newsletter in 2018. At the all-time high price, the airdrop was worth over $10,000. Not bad right!
Solana airdropped 6-10 SOL tokens to users who have followed their social media accounts. Two years after the airdrop, they were worth more than $1000.
Not all crypto airdrops can make you the same amount of money but it is worth what you have been asked to do.
Holder Airdrops
Holder airdrops are the crypto airdrops that are rewarded to holders of other cryptocurrencies or NFTs.
In 2017, every Bitcoin holder who had registered on Blockchain.com wallet has received Stellar(XLM) airdrop. A total of $125,000,000 worth of XLM had been given away to Bitcoin holders.
XRP holders got Sologenic(SOLO) airdrop in January 2022. Every Ripple(XRP) holder was rewarded with 0.00445 SOLO tokens for each XRP held in their wallet. 100,000,000 SOLO tokens have been airdropped in total.
The biggest one in recent times was the ApeCoin(APE) airdrop. It was the first of its kind token airdrop. APE tokens were airdropped to Bored Ape NFT holders in March 2022. Bored Ape Yacht Club(BAYC) NFT holders were able to claim 10,094 APE tokens and Mutant Ape Yacht Club(MAYC) NFT holders were able to claim 2042 APE tokens. Each APE token was worth $11 at the time of writing.
Retroactive Airdrops
Retroactive airdrops are rewarded to those who were active users of the decentralized applications. These can include decentralized exchanges, defi apps, bridges, dex aggregators, etc. To be eligible to receive the retroactive airdrop, you have to use the platform before the snapshot date.
Here are some examples of retroactive airdropsUniswap airdrop was the first retroactive airdrop to be distributed to its users. Uniswap is a decentralized exchange on Ethereum which is used to swap cryptocurrencies. Uniswap airdropped 400 UNI tokens to every user who used Uniswap before September 2020. Users have received this airdrop even if they had done just one swap. The airdrop was worth over $12,000 at the all-time high price of UNI.
1inch is another platform similar to Uniswap. 1inch airdropped 600 tokens to its users. The airdrop was worth over $4,000 in October 2021.
DYDX is a decentralized derivatives exchange that airdropped DYDX tokens to its users in August 2021. Users got tokens ranging from 310 to 9529 tokens depending on their activity. The all-time high price of DYDX is $27.8. I have used the DYDX exchange was eligible to receive the airdrop.
ENS is the Ethereum Naming Service. It is the domain naming system based on Ethereum. It offers .eth domains. Those who have bought ENS domains have received sizable airdrop.
Another interesting crypto airdrop is the airdrop of Open DAO. Open DAO did an airdrop to the users of the Opensea NFT marketplace. As all the activity of Opensea users is available on Ethereum, Open DAO airdropped SOS tokens to Opensea users based on their NFT trade volume.
How does Crypto Airdrops Work?
Crypto airdrops are distributed to cryptocurrency wallets. The projects ask you to submit your wallet address after you finish certain tasks. They verify whether you have completed those tasks and are eligible for the airdrop. If you are eligible for the crypto airdrop, cryptocurrency airdrops are sent to your cryptocurrency wallet directly.
Some crypto projects ask you to claim the airdrop from their website if you are eligible. Once you have the tokens in your wallet, transfer those tokens to the exchange where you can sell them.
Do not submit exchange wallet addresses to receive airdrops because exchanges do not support airdrops. Use cryptocurrency wallets like Trust wallet or Metamask for crypto airdrops.
Crypto Airdrop Channels on Telegram
These Telegram channels post information of ongoing airdrops and possibilities of airdrops where you can earn some cryptocurrency
- Airdrops.io
- Free Airdrops Channel
- Bitcoin Guru
- TheCryptoInsight
- Airdrop Detective
- Crypto Librarys Airdrop
Are Crypto Airdrops Safe?
Crypto airdrops are not completely safe but if you take the necessary steps you don't need to worry about your safety.
There are a lot of cryptocurrency projects and many new projects are coming up daily. Anyone can create a cryptocurrency. Crypto airdrop is a way to promote cryptocurrency. Some malicious actors take advantage of this hype and after cryptocurrency gains some value, they sell all their tokens and abandon the project and the price will eventually go to zero.
In order to tackle this, study about the project, know about the team. If you have received the airdrop and feel that you have earned a good amount of money, sell it and make use of it or invest in good cryptocurrencies.
Do not participate in crypto airdrops that ask you to spend money. It is definitely a scam. Avoid such kinds of crypto airdrops. There are going to be many other opportunities in the future.
And do not share your seed phrase or private key with anybody. Sharing it gives the other person, access to your wallet and you can completely lose your money.
Always create new emails and wallets for the purpose of crypto airdrops so that you can avoid phishing attacks and there won't be any risk of losing money.
Crypto airdrops are not always the same, they have been evolving. Projects are finding new kinds of ways to distribute airdrops to worthy users. Some good airdrops can change your life. If you research about a project, and you find it good, stick to it and you will definitely be rewarded.
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