What is a Crypto Airdrop?

Ever come across the famous adage, "There's no such thing as a free lunch"? Well, let's debunk that myth.

Airdrops stand as remarkable events within the cryptocurrency realm. It's when a cryptocurrency development team deposits their digital tokens or NFTs directly into your crypto wallet. The worth of an airdrop for individual recipients upon deposit varies widely, ranging from mere fractions of a cent to substantial six-figure sums, though typically leaning towards the former end of the spectrum.

One of the most notable airdrops occurred back in 2018. NEO blockchain announced that holders of their token, $NEO, would receive 0.2 $ONT tokens. $ONT serves as the crypto token for the Ontology blockchain, which was newly introduced at the time. Notably, 1 $ONT held a value of approximately $2 during the airdrop period. The cumulative value of all airdropped coins surpassed a staggering $40 million.

Why do development teams initiate airdrops, you might wonder? Well, there are various motives behind it, including bolstering marketing efforts and cultivating a loyal following. We'll delve deeper into this shortly.

In essence, an Airdrop translates into free money received from Crypto Projects.

But how does Crypto Airdrop Work?

Typically, eligibility for an airdrop hinges on meeting specific criteria set by the project. These criteria can range from simple actions like signing up to more involved tasks such as promoting the project on social media. Some airdrops may even necessitate holding a designated quantity of the project's cryptocurrency.

Regardless of the requirements, one fundamental prerequisite is having a crypto wallet to receive the distributed coins.

When an airdrop is announced, there are two crucial dates to keep in mind. Firstly, there's the "snapshot" time. This marks the moment when the project captures a screenshot of all eligible wallets. It's imperative to ensure that you fulfill all stipulated requirements by this snapshot time. Secondly, there's the distribution date. This signifies when you can anticipate the airdropped coins to be deposited into your wallet.

What Types of Airdrops are there in the Crypto Industry?

• Bounty Airdrops
  In order to qualify for a bounty airdrop, individuals must fulfill a predetermined series of tasks. These tasks can encompass a variety of activities, such as advocating for the cryptocurrency on social media platforms, joining its online community, subscribing to its newsletter, encouraging friends and family to subscribe to the newsletter, or extending software and coding assistance.
  
  
• Raffle Airdrops
  Typically, these airdrops necessitate some form of sign-up or registration process for eligibility. This setup epitomizes the conventional notion associated with the term "airdrop" and entails the least effort on the part of the recipient among all airdrop types. Essentially, they align closely with the concept of "free money."
  
  In cases of high demand, projects may resort to a raffle system to determine which wallets qualify for the airdrop.
  
  
• Exclusive Airdrops
  Occasionally, crypto development teams opt to acknowledge loyal community members by airdropping new tokens to wallets holding their cryptocurrency. In this scenario, recipients need not undertake any action; they merely discover new tokens deposited into their wallets one day.
  
  While this might appear as effortless gains, it's crucial to recognize that recipients of such airdrops initially demonstrated commitment by purchasing the project's cryptocurrency and enduring any market fluctuations.

Why do Cryptocurrency Projects create Airdrops?

A fundamental aspect of a cryptocurrency's legitimacy lies in its widespread ownership. Imagine a scenario where all the bitcoin in existence was concentrated within the holdings of a select few; inevitably, its value would be jeopardized. Airdrops serve as a strategic tool for projects to rapidly distribute their cryptocurrency to a large number of individuals, thus fostering broader ownership.

By facilitating the dispersion of their tokens among a diverse array of holders, projects enhance the decentralization and inclusivity of their ecosystem. This broad ownership not only bolsters the perceived legitimacy of the token but also contributes to its long-term viability and resilience within the cryptocurrency landscape. In essence, airdrops play a pivotal role in nurturing a vibrant and thriving crypto community.

One of the most conspicuous ways airdrops amplify marketing efforts is through bounty programs, where participants actively promote the coin in exchange for rewards. Moreover, the mere announcement of an upcoming airdrop can serve as a potent marketing tool in its own right. The allure of potentially receiving free money naturally piques the interest of a wide audience.

Airdrops serve as a means for projects to express gratitude to their loyal community members, fostering a sense of passion and appreciation within their ranks. By rewarding these dedicated individuals, projects aim to bolster the resilience of their cryptocurrency's price. Airdrops can incentivize holders to maintain their positions rather than sell, thereby contributing to the overall strength and stability of the token's market value.

Famous Airdrops from History

Uniswap (UNI)

The Biggest Airdrop Crypto World has seen was back on September 16, 2020, when Uniswap Distributed about $6.43 Billion Tokens of UNI. Back then the token had an ATH of $42.

This, as mentioned, is the biggest airdrop the world has ever seen.

Apecoin (APE)

The second biggest Airdrop/Giveaway was initiated by the Famous NFT project and its native token Apecoin (APE). It occurred on March 17, 2022, and in total there was $3.54 Billion distributed among users.

The principle of the giveaway was simple, winners were selected randomly, and you just had to buy APE, that’s it.

dYdX (DYDX)

The third biggest airdrop into the Crypto World was on September 8 2021 when $2 billion worth of Tokens were distributed. The price of the crypto at that time was around $26.8 which is the ATH result for DYDX.

So, in total, these 3 projects gave away around $12 billion in Airdrops.

Where to find Airdrops and Opportunities to earn „Free Money“?

Amidst the daily deployment of thousands of crypto projects and cryptocurrencies, a significant portion leverages airdrops as a promotional strategy. These airdrops present an opportunity for individuals to potentially earn "free money," yet keeping track of all of them proves to be a daunting task.

To alleviate this challenge, we've established the Cryptal Facebook Group, where we'll disseminate intriguing details and opportunities regarding airdrops. By joining the group and staying vigilant, you can ensure you don't miss out on any noteworthy airdrop opportunities. Don't let the chance to benefit from these airdrops slip through your fingers – join Cryptal today and stay informed!