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- 1 Crypto airdrop is an effective marketing strategy aimed at making projects more popular.
- 2 They involve distributing native tokens belonging to the project for free to the crypto users.
The onslaught of crypto projects in the 2010s also brought some innovative marketing methods. Among them, the crypto airdrops were one of the biggest highlights. These free token distribution programs became hugely popular among the growing number of crypto investors. These programs worked like a wonder for projects and investors alike.
They promoted startups perfectly and favored the crypto users too. Even today, these airdrops play a pivotal role in the campaign’s success. The program aims to get more people to join the project. It does a great job of making the project popular among certain circles of crypto investors.
So, knowing about it is certainly something that makes traders more knowledgeable.
Crypto Airdrop: In A Nutshell
A crypto airdrop is a promotional tactic that sends free tokens to potential investors. New projects send a small number of tokens to several digital asset users. Mostly, they are given for free, but they may have conditions as well. In the latter case, the recipients are usually asked to share the project information on social media.
The blockchain-based startups typically promote airdrops on their websites, social media channels, and forums. Under the campaign, digital assets are sent to a chosen list of crypto enthusiasts. The projects pick those people based on various parameters. Mostly, they just need to hold a certain amount of crypto in their wallets.
Types of Crypto Airdrop
There are some types of crypto airdrops that new investors should know about.
Standard Airdrop
The standard airdrops work on a simple pattern. They drop an email to the recipient’s email address and ask them for basic details like wallet address. Some of them may ask for additional information and others may not. A few others may even be time-sensitive.
Ideally, they provide tokens to an individual only once. However, crypto users can easily create multiple wallets and get more tokens.
Bounty Airdrop
These airdrops are designed to enhance participation by users. They offer tokens in exchange for fulfillment of certain tasks from the participants. Mostly, it is social media posts by the users about the project or retweeting their recent posts. Furthermore, the projects also offer referral bonuses to people who bring other participants into the project.
Holder Airdrop
This airdrop is designed for the existing users. Instead of offering tokens to new people, they reward those who have held on to them already. It’s almost like companies distributing dividends among their stockholders. The only thing is, in this context, the tokens may still be invaluable.
Hence, the existing holders receiving the additional lot may not need them in the first place.
Exclusive Airdrop
These airdrops are like rewards to the members of the project community. The project gives free tokens to those people who have shown notable contributions to it. Also, it doesn’t matter if they already hold some tokens or not. If their work is valued by the company, they get the assets.
Raffle Airdrop
Raffle airdrops are also like rewards but they don’t always select the winner based on their contribution. Instead, they are chosen on various random parameters. They range from simply showing interest to holding tokens, or earning points.
It also enables projects to limit the number of winners because the number of eligible candidates may exceed the number of dispensable tokens.
Crypto Airdrop Development Process
It begins at the time when the marketing campaign of the project is designed. The first step is determining what type of airdrop the startup wants to do. After deciding that, it’s time to plan the whole thing including the list of eligible people. Once the planning is done, it’s time to indulge in its promotion.
The projects usually do that through social media posts, articles, and announcements in relevant forums. When the hype is created, the projects launch the campaign and collect the information they need. The team gathers all the information and releases the tokens to the chosen wallet at a predetermined time.
Upshot
Crypto airdrops have emerged as a big help for blockchain-based startups. These extensive marketing gimmicks make the project popular among many digital asset enthusiasts. Despite that, a project attains success when the whole campaign is strong. Thus, it’s essential to plan it with professional expertise.
Users need to be vary of any sort of scams. They need to remember that no project seeks investment from them under an airdrop. In addition, they need to check the project’s details thoroughly before providing all the details. If done carefully and wisely, indulging in an airdrop is a prudent step for both parties.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
