What Is an Airdrop in Crypto?

Crypto Airdrop is the process of giving away free cryptocurrency tokens to the community. It is a promotional event where the project team distributes free coins or tokens to the users.

The main purpose of conducting an Airdrop campaign is to create awareness about the project and to increase its reach among people who are not familiar with it. This marketing strategy is often used by new projects that want to create a buzz around their project.

Airdrop campaigns are also conducted by established projects to reward their loyal users or to distribute new tokens created as a result of a fork, and how to get an airdrop?

What Is a Crypto Airdrop and How Do Crypto Airdrops Work?

Airdrops usually happen one of two ways. The first way is that a blockchain project will hard fork an existing cryptocurrency and distribute the new tokens to holders of the old cryptocurrency. For example, when Ethereum forked to create Ethereum Classic, holders of ETH were given an equal number of ETC.

The second-way airdrops work is that a blockchain project will give away free airdrop tokens to users who sign up for it. For example, in January 2018, the blockchain project Stellar conducted an airdrop of 2 bln XLM tokens to users who signed up for the airdrop.

What Are the Different Types of Airdrops?

There are three different types of airdrops:

1. Claimable Airdrops: These airdrops require users to take action, such as joining a Telegram group or following a Twitter account, to receive the free tokens.

2. Holdable Airdrops: These airdrops require users to hold a certain amount of tokens in their wallets at the time of the airdrop to receive the free tokens.

3. Forks: These airdrops happen when a blockchain project hard forks an existing cryptocurrency and distributes the new tokens to holders of the old cryptocurrency.

Why Do Crypto Airdrops Exist?

There are a few reasons why blockchain projects conduct crypto airdrops. The following are some of the most common reasons:

1. To reward loyal holders of a particular cryptocurrency: Airdrops are often conducted as a way to reward loyal holders of a particular cryptocurrency. For example, in September 2017, the popular bitcoin and Ethereum wallets provider, Breadwallet, conducted an airdrop of 16 bln BRD tokens to users who held bitcoin and Ethereum in their wallets at the time of the airdrop. The airdrop was conducted to promote the adoption of BRD tokens.

2. To jumpstart a blockchain project’s community growth: Airdrops are often conducted as marketing stunts to jumpstart a blockchain project’s community growth. For example, in January 2018, the blockchain project Stellar conducted an airdrop of 2 bln XLM tokens to users who signed up for the airdrop. The airdrop was conducted to promote the adoption of Stellar’s cryptocurrency, XLM.

3. To distribute tokens to a wide audience: Airdrops are often conducted as a way to distribute tokens to a wide audience. For example, in September 2017, the popular bitcoin and Ethereum wallets provider, Breadwallet, conducted an airdrop of 16 bln BRD tokens to users who held bitcoin and Ethereum in their wallets at the time of the airdrop. The airdrop was conducted to promote the adoption of BRD tokens.

Why Engage in a Crypto Airdrop?

There are a few benefits of participating in a crypto airdrop. Here’s what you stand to gain:

1. You can get free tokens: One of the most obvious benefits of participating in a crypto airdrop is that you can get free tokens. For example, in September 2017, the popular bitcoin and Ethereum wallets provider, Breadwallet, conducted an airdrop of 16 bln BRD tokens to users who held bitcoin and Ethereum in their wallets at the time of the airdrop. The airdrop was conducted to promote the adoption of BRD tokens.

2. You can help promote a blockchain project: Another benefit of participating in a crypto airdrop is that you can help promote a blockchain project. For example, in January 2018, the blockchain project Stellar conducted an airdrop of 2 bln XLM tokens to users who signed up for the airdrop. The airdrop was conducted to promote the adoption of Stellar’s cryptocurrency, XLM.

3. You can learn about new blockchain projects: Another benefit of participating in a crypto airdrop is that you can learn about new blockchain projects. For example, in September 2017, the popular bitcoin and Ethereum wallets provider, Breadwallet, conducted an airdrop of 16 bln BRD tokens to users who held bitcoin and Ethereum in their wallets at the time of the airdrop. The airdrop was conducted to promote the adoption of BRD tokens.

4. You can increase the value of your portfolio: Another benefit of participating in a crypto airdrop is that you can increase the value of your portfolio. For example, if you hold 1 ETH and receive 100 BRD tokens from an airdrop, then the value of your portfolio has just increased by $100.

What Are the Examples of Successful Crypto Airdrops?

There have been many successful crypto airdrops. The following are some of the most successful crypto airdrops:

1. The Breadwallet Airdrop: In September 2017, the popular bitcoin and Ethereum wallets provider, Breadwallet, conducted an airdrop of 16 bln BRD tokens to users who held bitcoin and Ethereum in their wallets at the time of the airdrop. The airdrop was conducted to promote the adoption of BRD tokens.

2. The Stellar Airdrop: In January 2018, the blockchain project Stellar conducted an airdrop of 2 bln XLM tokens to users who signed up for the airdrop. The airdrop was conducted to promote the adoption of Stellar’s cryptocurrency, XLM.

3. The OmiseGO Airdrop: In September 2017, the blockchain project OmiseGO conducted an airdrop of 10% of its total supply of OMG tokens to users who held ETH in their wallets at the time of the airdrop. The airdrop was conducted to promote the adoption of OmiseGO’s cryptocurrency, OMG.

4. The LOOKS Airdrop: In February 2018, the blockchain project LOOKS conducted an airdrop of 1% of its total supply of LKS tokens to users who held ETH in their wallets at the time of the airdrop. The airdrop was conducted to promote the adoption of LOOKS’s cryptocurrency, LKS.

How to Receive an Airdrop?

The following are some of the most common requirements for becoming eligible for a crypto airdrop:

1. Hold a specific cryptocurrency in your wallet: One of the most common requirements for becoming eligible for a crypto airdrop is to hold a specific cryptocurrency in your wallet. For example, in order to receive the 16 bln BRD tokens from the Breadwallet airdrop, you had to hold bitcoin or Ethereum in your wallet at the time of the airdrop.

2. Sign up for the airdrop: Another common requirement for becoming eligible for a crypto airdrop is to sign up for the airdrop. For example, in order to receive the 2 bln XLM tokens from the Stellar airdrop, you had to sign up for the airdrop.

3. Complete certain tasks: Another common requirement for becoming eligible for a crypto airdrop is to complete certain tasks. For example, in order to receive the 10% of OMG tokens from the OmiseGO airdrop, you had to complete certain tasks.

4. Be a member of a specific group: Another common requirement for becoming eligible for a crypto airdrop is to be a member of a specific group. For example, in order to receive the 1% of LKS tokens from the LOOKS airdrop, you had to be a member of the LOOKS Telegram group.

The Bottom Line

A crypto airdrop is when a blockchain project gives free tokens or coins to users. The purpose of this is to promote the adoption of the project’s cryptocurrency. In order to receive an airdrop, you usually have to hold a specific cryptocurrency in your wallet or sign up for the airdrop. There have been many successful crypto airdrops. Some of the most successful crypto airdrops include the Breadwallet airdrop, the Stellar airdrop, the OmiseGO airdrop, and the LOOKS airdrop.