Cryptocurrencies only hold value because people believe in them and recognize their worth. The more people who own a cryptocurrency, the more likely it is to become widely adopted and rise in value. Airdrops are effective due to the endowment effect, a phenomenon in which people will ascribe value to things merely because they own them.
By conducting a bounty airdrop, a DeFi startup can create mass awareness about their project, token sale or pre-ICO with minimal cost to them. Social media campaigns allow the project to become visible to people who would otherwise never recognize its existence. Airdrops can also create a vast network of users who are motivated to push a project’s success by doing things together like winning community votings for exchange listings.
By rewarding token owners with free airdrops, projects can also encourage users to hold (HODL) their coin for the long-term. This can effectively lower the selling pressure of the coin. Holder airdrops have been a popular tactic amongst some of the most successful crypto projects, like NXT, WAVES, Bitcore and more.
How do I claim airdrops?
The claim process differs from project to project. Some “holder drops” will drop tokens automatically into the wallets of users who own a specific coin. Other projects are snapshot based, and can only be claimed by users who held the required token during the snapshot, which is a record of token holders taken at a specific time/block.
An example of a holder airdrop is Byteball, which was initially distributed to Bitcoin holders. They also airdropped a monthly amount of Bytes into the wallets of Byteball holders proportional to the amount of BTC/GBYTE that they held during the drop. These types of drops can create excitement which often results in significant price action for the particular coin.
For taking part in bounty airdrops, you will likely need active accounts on social media sites such as Facebook, Twitter, and Telegram. You should also have a Bitcointalk.org account, as some drops require participants to post proof of ownership in the forum threads. Most bounty drops will require you to join a Telegram group and share posts on Facebook and Twitter. After completing the steps to reserve rewards, you will often need to fill out a form with your usernames and wallet address.
Popular Airdrops
The following cryptocurrencies were initially distributed for free:
• Byteball
• Stellar Lumens
• ARDR
• NEM
Participants with strong hands were able to generate notable wealth by merely holding these airdropped coins through their volatile growth. We highly recommend to hodl your airdrops as long as possible. There is no doubt that the majority of crypto projects out there are worthless and they will fall to zero, but we bring you projects in which we see future potential. Some of these projects will be very successful, and if you decide to hold onto their tokens, your future self will be thankful.
Types of Free Airdrops
Holder Airdrop happens when tokens are sent to all or random active wallets that hold specific tokens, for example, ETH or EOS. A good example is the 2017 global Omisego airdrop that aimed to increase token distribution and security.
Signup Airdrop or Standard Airdrop requires you to fill the form and actively sign up for the campaign, sharing at least your name and email address. An example could be the stellar airdrop, which also required you to get the Blockchain Wallet.
Bounty Airdrop usually requires some action, like following the project on social media, liking, tweeting, commenting on forums, and joining a telegram group.
Hardfork Airdrop happens when a cryptocurrency coin splits into two separate currencies, and users can choose which protocol to follow and which token they’d like to hold. The newly formed coins are distributed by airdrop, as was the case with Bitcoin Cash.
Exclusive Airdrops are usually reserved for a specific community or chosen members to express gratitude and inspire or reward loyalty.
What are hard forks?
A hard fork is when a cryptocurrency splits into two separate currencies. The first hard fork was Bitcoin Cash which was split from Bitcoin at block #478,558 on August 1st, 2017. Bitcoin forks and the forking of other chains became popular since then. We list hard forks for mostly informative purposes, but also because we see them as dividends and similar to an airdrop. We are not able to verify the safety or legitimacy of hard forks, so always be cautious and make sure to claim forks with the private key of an empty wallet.
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