It's the cryptocurrency airdrop season, and the savvy investor is looking through its sources for the most recent airdrop alert. Crypto airdrops can reap thousands of dollars in rewards and speed up a blockchain project's adoption.
Airdrops are a unique marketing tactic that project teams and developers leverage in crypto token promotions. The marketing team, for instance, issue press releases, social media and blogs warning loyal users or their target public of a forthcoming release of tokens for free.
So, a crypto-airdrop can be a fantastic risk-free chance to get free digital currency which could appreciate in value in the future. A marketing strategy that is guerilla airdrops are a clear break from the traditional marketing strategy, grabbing user attention via popular social media posts.
They are able to capitalize on the market's FOMO (Fear of missing out) attitude and its constant love of free stuff. They are therefore affordable and budget-friendly strategies that generate a massive excitement and lasting impact on the people who experience them for the first time.
A crypto airdrop alert, however, offers more than project promotion. It creates interest and discussion about a blockchain service and attract more investors.
An airdrop that is successful can start a new venture. In addition, airdrops are an excellent distributed token tool that is decentralized. They facilitate the equitable distribution of tokens for governance on projects' launch.
History of crypto airdrops
Airdrops of cryptocurrency are a phenomenon as old as the sector itself. As an illustration, Gavin Andersen's freebitcoins.appspot.com site gave away 5 BTC free in 2010. In order to win the bitcoin, all that its visitors needed to do was solve the captcha!
In the past, Gavin was the chief Bitcoin blockchain software developer and made use of the website to spread awareness about BTC. Gavin gave away 19,700 BTC through the airdrop procedure. The BTC is worth billions today.
Since then, thousands of blockchain-related projects have released airdrop alerts. One of the most thrilling early crypto alerts, for example, included the Decred airdrop that took place in 2016. The Decred airdrop was a huge success and issued 258,000 DCR. At its peak in April 2021, one DCR token cost $246 from lows of $1.2 at the time of issuance.
At the height of the ICO period, this peculiar airdrop phenomenon went mainstream in 2017. Thousands of projects issued free tokens to those who purchased them. While some of these tokens were useless, some led to fortunes. Airdrops were not just only for new projects. Blockchains that had been around for a while and hard forks were also able to leverage them to boost up their popularity.
For example, Bitcoin Cash and Stellar blockchains had impressive airdrop projects in 2017. In June 2017, Stellar issued $1000 XLM per BTC to every bitcoin holder. The decentralized, open-source low-cost digital currency transfers protocol donated 19% of its stock during this specific airdrop.
In the year 2018, Stellar once more issued $125,000,000 XLM tokens to its users as one of the sector's largest crypto airdrops. Since February, however, BitTorrent has been giving 100 billion BTT to TRX holders. The BTT airdrop will run till 2025.
Some of the most recent profitable airdrops include Uniswap (UNI), 1inch, OpenDAO and the Ethereum Name Service (ENS) airdrops. For instance, the 2020 Uniswap airdrop offered all DEX (DEX) users free UNI.
Accounts that were eligible to carry at least just one trade on DEX received 400 UNI. The majority of free token holders immediately sold their tokens in exchanges , ranging from $2-$4. The long-term UNI owner had higher returns. Later, UNI rose to an all-time high of $33 in the month of May 2021.
The 1inch airdrop announcement went out in the late part of 2020. The DEX gave away 90 million 1INCH to over 55,000 addresses. The only thing users needed to do in order to win 1INCH was to make at least four trades or a minimum of $20 deal on the DEX.
Then, the cost of 1INCH quickly climbed from $2.7 and reached an historic record $7.4 in May 2021. The exciting ENS airdrop occurred in the month of November 2021. It was a uncentralized Domain Name System (DNS) service, which is the provider of Ethereum wallet addresses, also known as .eth domain names, gave away 25 percent of the $ENS supply to .ETH holders.
In contrast, the OpenDAO Airdrop for $SOS was a reward for OpenSea users with a token which soared in value by 1000% within only a few trading days.
The value of the token climbed from $26 as lows when it was first issued to an record-setting $77 within just two months of trade. Have you heard that several countries have also joined the airdrop trend? El Salvador, for instance provided every adult who installed its BTC wallet app $30 worth of BTC in June 2021.
Ukraine was also planning to offer a crypto airdrop for its crypto donation campaign supporters but it has since been scrapped and adopted NFT airdrops in place.
How to benefit from crypto airdrops
Airdrops in crypto are tools that aid in forming'skin-in the-game' fans. They increase engagement and encourage participation in blockchain projects. In addition, crypto-related giveaways could assist in scaling up projects that are just beginning and have massive benefits for the end user.
Investors in crypto can profit from crypto airdrops, and can earn lucrative returns from free crypto. To make the most of crypto airdrops, it is essential to get an airdrop notification from cryptocurrency news websites such as Algory.
The Algory News Scanner is the most reliable source for current cryptocurrency industry news. Make use of it to track hundreds of news sources as well as airdrop websites. You can then be the first to be informed and stake your claim on the most effective use-case for project tokens at the bottom of the barrel token prices.
You can profit from the airdrop tokens through
As many airdrops as possible
You can make massive returns from free token giveaways by catching the best tokens in their early stages of value growth. Free tokens won't just add value, but also can also diversify your portfolio. This being said, here's an important caveat.
While it is true that you can make returns as an early investor in airdrops however, you'll come across numerous fake, scam and suspicious projects on the web. Make sure you do your research using tools for research, like the Algory cryptocurrency market scanner's filters and alerts, and pinpoint any fraudulent airdrop alert within the timeframe you need to.
If you don't do your homework thoroughly, you could end up spending hours meeting a token airdrop's eligibility criteria and win useless tokens at the end of the day. Some crypto airdrops are gateways to hacking, phishing dusting or pump-and dump schemes.
For example, Oyster Pearl issued 2227 PRL tokens as part of an airdrop that was exclusive in November of 2017. It was among the most popular airdrops of the time. In its prime the amount of airdrops was more than $11,000. However, the anonymous founder, who went by his pseudonym Bruno Block, drained all value out of PRL tokens, which cheated Oyster's early backers.
Be careful, and always do the Own Research (DYOR). Learn about the purpose of a project before approving it. The majority of fraudsters promote useless projects. To catch the pump-and-dump schemes early on, stay away from the airdrops that are tokens that is more about the hype than value.
These projects could be rug pull or Phishing projects that make you vulnerable to marketing spam. In addition, some fraudsters offer private information such as public and email addresses to third-party companies.
As a rule of thumb, all airdrop alerts are free giveaways. Beware of alerts from airdrops that ask you to pay bitcoin, crypto private keys, seed phrases in return for free tokens.
Staking your free tokens
A multitude of proof-of-stakes (PoS) blockchain projects send airdrop alerts each day. For example, Cosmos and Solana ecosystems might launch airdrops. Then, you could place these tokens in a stake and earn a profit.
Staking free PoS tokens opens doors to staking rewards and finance protocols that are decentralized, like liquidity mining as well as yield farming. As an illustration, on March 20, 2021, the Anchor Protocol gave away 50 million ANC or 5% of its supply in exchange for Terra (LUNA) stakers. LUNA holders that keep staking their tokens in the future will earn more and receive free ANC for two years.
Furthermore, you may receive airdrop tokens in the future if you stake your initial giveaway tokens. Staking grants valuable rewards to stakers and validators. For example, Osmosis (OSMO), an initiative of the Cosmos project, offered ATOM holders 20% of OSMO supply upon the day of launch.
But, those who were able to stake OSMO as validators earned the remaining 80% in its coins. The Osmosis team game plan was to incentivize any nodes that secure their network.
Staking also opens doors to rewards for governance while also creating decentralized communities. For instance, you can gain more airdrop tokens taking part with blockchain-related governance procedures. JET Protocol, for instance, a Solana project, includes a Jet Governance module that airdrops tokens to holders who cast votes on proposed proposals. Stakers also earn more JET when the token lock time is completed.
Earning more tokens through referrals
The distribution of free tokens can serve as a system of reward that rewards community members who help increase project awareness online. The incentivization of the chief project awareness champions will ensure that applications that use decentralized cases and tokens are viewed by wide publics before the exchange trading process begins.
A high degree of awareness of the project can cause quick token value increases on project launch. In this regard you can profit from crypto airdrops through participation in airdrop referral systems. Research an airdrop alert, join an airdrop referral system, and add your buddies to the project, and earn referral airdrop tokens.
Earning tokens by meeting all requirements for airdrops.
There are several types of airdrops. A typical airdrop helps promote an cryptocurrency by sending cryptocurrency currency to wallet addresses. These airdrops benefit beginners as well as experienced traders in the crypto market since they have low qualifications.
Other types of crypto airdrops reward users who meet certain activity thresholds. In this case that bounty airdrops are a reward for project promoters while the exclusive airdrops are targeted at genuine project users. The holder airdrop may target the stakers or investors with the same number of coins in their accounts.
You can also receive exclusive airdrops by satisfying certain criteria, like playing games that earn you cryptocurrencies or taking a course on cryptocurrency. In this case you can earn free XLM by learning more about it. Other airdrop tokens that are exclusive to reward tasks include making wallets and trading on the DEX.
Other advantages of crypto airdrops
They're an investment strategy that is risk-free and crypto.
There is no chance of losing any investment capital should your airdrop token lose its value. It is important to look out for frauds when searching for free crypto coins.
These are opportunities to get in on the action at project infancy.
Airdrop tokens may reward long term owners with 100X return.
- Income generation
Professional bounty or airdrop hunters earn money from airdrop tokens as well as their referral systems.
- Crypto education opportunities
Announcing an airdrop is an excellent opportunity for crypto education. Join a group on Telegram or discord server and learn more about the crypto industry.
Conclusion
Discovering an early airdrop alert is key to benefitting from the best crypto airdrops. Use the Algory cryptocurrency news aggregator to search the crypto world for the latest airdrop news and exchanges offer bonuses that can bring the most benefit.
