Have you heard of airdrops before? Companies use airdrops to distribute free crypto tokens. It is often used as a marketing strategy to increase the number of new users on their platform or distributed as a gift to reward loyal users. It is also used as a promotional event for crypto platforms to raise public awareness of new crypto assets listed on their platform or used to increase trading volume when an asset is first launched on the exchange.
Once the airdrop event has been concluded, crypto assets will be sent to the recipient’s wallet. Recipients are typically randomly selected by the crypto platform, or they are selected when the participants have completed a series of tasks. Airdrop events are usually announced by the platform on the details including the start date and time before it commences.
One example of an airdrop event is the Tadpole Finance’s Genesis Mining program which aims to distribute up to 200,000 TAD tokens. The assets are worth up to 1.5 million dollars and are distributed among all users who are TEN Holders. Before this program, TAD’s token price was at IDR 360.00 and after the program commenced in October 2020,the token price rose up to IDR 856.00. This is because many people participated in the airdrop event, which led to the increase in token price.
Airdrop events are popular amongst crypto users. There are some who take the airdrop events very seriously and even end up becoming airdrop hunters. Airdrop hunters diligently “hunt” for airdrop distribution events to participate in to earn free crypto assets. However, these airdrops hunters do not carelessly follow every airdrop event, but only participate those held by platforms that are safe and secure.
How to Get Crypto Airdrops
As explained above, to participate in an airdrop event, you usually have to complete a set number of tasks. Some of the tasks could include promoting on the crypto platform on your social media or your blog, joining their official group, or by registering for an account on their platform. Here are some of the types of airdrops:
- Standard Airdrop: airdrop distribution to those who register an account on the platform to get updates in the form of newsletters.
- Bounty Airdrop: airdrop distribution to users who promote the platform through social media platforms and blogs.
- Exclusive Airdrop: airdrop distribution to platform users who have the most number of followers on social media.
- Holder Airdrop: airdrop distribution to wallet owners with a certain amount of crypto assets.
Typically, to participate in the airdrop, you must first hold a wallet with the crypto platform. For example, if the distribution of the airdrop is using Bitcoin tokens, then you must have a Bitcoin wallet to be able to participate.
If you already have a wallet, how do you find airdrop events? The method is quite simple – you can do so by Googling or by getting first dips through the crypto community. If you have not joined any crypto community, you can start by joining crypto forums on the internet or by visiting websites like airdrop.io for information about the latest airdrops.
Beware of Airdrop-Based Scams
With the increasing popularity of crypto airdrops, there are many who commit fraud through airdrops. There are several types of airdrop scams that often occur in the crypto world. One of them is using airdrop to carry out data theft. For this type of fraud, users will be asked to upload their data on a platform in order to receive the airdrop. All data in the form of email addresses, private keys to your wallet, and passwords will then be collected and sold to third parties or used to steal your assets. In another version of airdrop fraud, you will be asked to share the private key (crypto version of an ATM pin) for your crypto wallet. The scammers will then use the private key to access the wallet and steal the assets.
One of the biggest airdrop fraud was carried out by a site called OmiseGo in 2017 which stole up to 300 Ethereum coins from its users. This scam was carried out very carefully in order to gain the trust of users. OmiseGo started by creating a Twitter account which was followed by many users and made its site look extremely official. OmiseGo then persuaded the users to share their private keys so that they can gain access to their wallets to steal the assets.
To avoid being scammed, we recommend that you always do research on the platform that is organising the airdrop before participating. Some things to consider are whether the crypto tokens that are being distributed can be trusted? What is the technology behind these assets? What are the future potential of these assets? Who is the developer of these assets? Is there an official community that supports these assets? If you have considered some of these things and have done your due diligence, then you know it is safe to participate in the airdrop.
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