The concept of airdrop, which has appeared frequently since cryptocurrencies have been on the market, has been an effective promotion method for many cryptocurrencies. Even if it is not used as a promotional method, exchanges can sometimes give their users their tokens. In today’s article, we will talk about what is airdrop, how to get airdrop, potential risks and gains of airdrop.
What is Airdrop?
The name of the phrase “raining money from the sky” in the cryptocurrency world is airdrop. To explain further; Airdrop is the distribution of coins that will be newly included in the cryptocurrency market for free or under certain conditions. The aim here is to introduce people to the money that has just entered the market and to create mobility in the project ecosystem.
You can think of the airdrop system as a kind of advertisement or promotion of new products by brands. Just as there is a possibility that the products may not sell despite the advertisements, there is a possibility that cryptocurrencies may not enter the stock exchange despite the Airdrop. But still, using this system is an attractive option for coin creators.
How to Get Airdrop?
We always say that the cryptocurrency world requires close attention and follow-up. This is also the case to benefit from Airdrop. You need to follow the sites of all existing coins and the channels where developments related to the cryptocurrency exchange are transferred. If a coin is going to fork or an altcoin is going to be released, it first makes an announcement on its own site. The conditions required for the airdrop are also announced here and applications are opened. Directives are sent to people who meet the conditions, and at the end of this, people benefit from AirDrop.
If you have a considerable title in the cryptocurrency world, if you have a large number of followers on social media (for people who share about this field), you can benefit from the airdrop for free. Usually, coin managers reach these people directly.
How Can You Participate in Airdrop Events on Exchanges?
Exchanges can distribute airdrops and different methods to their users in order to promote their own crypto coins and the crypto coins they agree with and increase their usage. Since users usually do not receive news by e-mail, it is good for users to look at the distribution news of crypto coins on exchanges and where the distribution is made in their own accounts. In some cases, exchanges may ask their users to participate in airdrop events with different methods. In this case, we recommend that you read and follow the articles on how you can participate in the airdrops of the exchanges.
How Can You Earn on Airdrop?
Cryptocurrencies apply airdrops for different platforms before they hit the market. It is recommended that you first subscribe to sites that follow airdrop news. After subscribing, it is recommended that you enter the mailing lists of certain sites and receive news via e-mails. If you have received airdrop notifications from certain sites, they first publish technical documents on their sites explaining the features of crypto coins in general and how to use them. After reading the technical documents, you can participate in the airdrop events of your favourite projects. But it should be said that since they usually give trace amounts of crypto money to participants in airdrops, it depends on your efforts to increase the amount.
The developing crypto ecosystem has also facilitated airdrop tracking. Airdrops, which were previously followed via e-mail and newsletter, can now also be followed on social media. When a crypto project announces an airdrop on social media, it is discovered in a short time with the interaction of the relevant people. For this reason, it is important for users who will follow airdrops to follow social media accounts that are described as airdrop hunters.
What are the Conditions for Winning Airdrop?
Winning airdrops is not always easy. Previously, crypto projects conducted airdrops without conditions to attract users. Increasing users and market volume are prompting new cryptocurrency projects to explore diverse methods. Crypto initiatives now mandate users to meet conditions before participating in airdrops.
The most common airdrop condition was staking. Crypto projects started to airdrop certain cryptocurrencies on their own blockchains or on trending blockchains. Starting in mid-2023, this situation became a big furore in 2024.
The realisation of Celestia (TIA) airdrop, especially for Cosmos (ATOM) stakers, caused a great echo in the crypto market. The airdrop of Celestia, a modular blockchain, to ATOM stakers also mobilised many projects. Crypto projects that took action after Celestia started to airdrop ATOM, INJ and TIA stakers. This trend has grown so much in 2024 that investors have recently started to make stake-oriented transactions.
Another airdrop requirement may be to trade in the blockchains or ecosystems of crypto projects that are likely to airdrop. For example, a project called A Coin has announced that it will do an airdrop and has not announced the conditions for it, crypto investors can actively trade in A Coin’s ecosystem at this point, if any. Users can trade or provide liquidity, paying fees on DeFi platforms. If these projects are available, they can also turn to the NFT side. Minting NFTs can make it easier to earn airdrops from the ecosystem they are in.
Apart from all these, crypto investors can also get airdrops by earning points. Platforms like Galxe implement task-reward mechanisms for their partnered projects. Projects offer tasks and rewards to crypto investors, allowing them to earn airdrop rights. Points earned for tasks in projects can convert into future airdrop rights.
Some Crypto Projects Performing Airdrops
In 2023, Arbitrum (ARB), Aptos (APT), and Optimism (OP) made significant impacts after entering the market through airdrops. These projects have become the leading names of the airdrop fury. Before 2023, airdrops were rare, but a surge occurred with announcements from upcoming crypto projects.
The last airdrop in the industry came from Jupiter Exchange (JUP) in the Solana ecosystem. Jupiter airdropped JUP tokens to active users who transact on its DEX. Jupiter Exchange allocated $800 million to its airdrop, which made a big impact.
One of the earliest projects before Jupiter is AltLayer. AltLayer team conducted airdrops for ETH stakers and active network participants, given its restaking services. In addition, AltLayer announced that it will also airdrop Celestia (TIA) stakers.
Dymension, built on Cosmos SDK, rapidly gained popularity and finished its airdrop distribution. Popular crypto project conducts airdrops for active ecosystem participants, contributors, and stakers.
What are the Risks of Airdrops?
Airdrops, pre-launch promotions, may require sharing wallet info, but no payments are involved. Risks include project issues, poor returns, and failure to list on exchanges. Worst-case: Projects may be Ponzi schemes, facing regulatory issues.
How Can We Avoid Airdrop Risks?
Since all investments, including cryptocurrencies, carry risk, research projects thoroughly. Follow project docs, updates, and social media for insights. Research projects before investing, then follow developments closely. In this way, you have the chance to minimise risks.
Airdrop Risky or Profitable?
As with everything, there are always risks and gains here. Namely; coins that come to you as a gift can rise significantly over time. You can make a profit from something you own without investing. Use airdropped coins to purchase different cryptocurrencies on the exchange. This can increase your earnings even more. Trade coins on exchange for higher earnings. Convert to fiat or store in crypto wallet.
Airdropped coins may not appreciate or enter exchanges, alongside positive scenarios. But in real terms, this situation may not be defined as a loss. That is, it can also be considered as something that is not yours at all. The worst airdrop scenario won’t go beyond this, depending on your perspective.
There is another risk, albeit a small possibility: Fraud. People using cryptocurrency exchanges for malicious purposes can ensnare you with this method. Verify from official sources and cross-check to avoid scams. As long as you pay attention to this, there will be no risky situation.
Conclusion
While airdrops promote cryptocurrencies, they pose high risks for users and project stakeholders. To participate in airdrops, we recommend joining and following mailing lists on airdrop tracking sites. Prominent figures in crypto receive offers for free airdrop campaigns. Due to potential risks, research before participating in airdrops is recommended.
