Kryptolesson #34

What is an airdrop?

An airdrop is a marketing stunt of the blockchain ecosystem, involving free distribution of additional coins or tokens to users of a particular blockchain project. Airdrops are often used to market and incentivize engagement in different blockchain projects and their associated tokens. Likewise, airdrops are often distributed as a thank you from the project team for participating and trusting the project to its participants.

Depending on the kind of airdrop there are several requirements to be met. For some airdrops a user only needs to register with their email and wallet addresses, whereas for other airdrops the user is required to hold a given amount of tokens in a specific wallet at a predefined time or to perform a given activity such as reposting a tweet from the issuing company. The wallet i.e., the blockchain identity of the user in question, is communicated to the issuing entity and after verification of the predetermined conditions the funds are transferred. A SnapShot is taken of the previous tokens at the specified time to identify the number of new tokens for that wallet address. Generally, there are four different ways to participate in airdrops:

  • Standard Airdrops: these are known as the "general admission" airdrops. By filling out the required information or completing promotional tasks and providing the wallet address, one can participate in the airdrop.
  • Exclusive airdrops: this is a "VIP" airdrop. This stream is usually reserved for those who are particularly loyal to a blockchain project.
  • Bounty Airdrops: similar to standard airdrops, with participants having to do more promotion, usually on Facebook or Twitter, to get the word out about the project.
  • Holder Airdrops: Participants must own an existing cryptocurrency such as ETH or BTC to receive an Airdrops token.

Photo by Kai Dahms