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Definition | Airdrop – Giveaway – Free Cryptocurrency | Futura Tech

In L’Universe belonging cryptocurrenciesthe term “airdrop” refers to free distribution token. Several units of cryptocurrency are sent to hundreds or thousands of wallet addresses.

Why such a free distribution? Usually, the operation is aimed at making a particular token more famous, creating a buzz about it. In fact, the stronger the interest in a cryptocurrency, the more its price can rise. It is likely that more people will be interested in it, and therefore more likely to see this young currency listed on a major exchange such as Coinbase or Coinbase. Binance. Thus, an airdrop can be compared to a promotion: given the intense competition between startups in this area, an airdrop can help draw attention to a particular token.

To participate in an airdrop, you must first have a wallet such as MetaMask or Trust Wallet, or even a currency-specific wallet. It is usually necessary that this wallet has a minimum of tokens of the currency involved.

Sometimes a person who wants to benefit from a giveaway needs one or more actions: tweeting a currency, retweeting a post…

airdrop stories

Let’s take a look at a few airdrops that have been around since this concept was born, and we’ll get a better idea of ​​what the practice is.

AuroraCoin

The very first airdrop took place on March 25, 2014. Iceland launched AuroraCoin (AUR) with the goal of making it the national cryptocurrency. Each citizen or resident of the country who provided their identification number received 31.8 AUR. A total of 21 million AUR were distributed, i.e. 50% of all issued tokens. In July 2022, one AuroraCoin was worth almost $1.50.

bitcoin cash

In 2017, two ardent supporters bitcoin, Roger Ver and Gavin Andresen supported an important evolution of Bitcoin, Bitcoin Cash (BCH). It turned out that transaction management slowed down significantly. BCH proposed to solve this situation by significantly increasing the size of blocks – eight times larger than blocks. blockchain bitcoin. Despite the controversy, BCH was born, and a huge airdrop was organized on this occasion: every bitcoin owner who decided to support Bitcoin Cash received as much BCH in his wallet as he had BTC (bitcoins). At the time, BCH was worth about 1/10 BTC and so this airdrop had a big impact on them. Even today, BCH is in the top 30 cryptocurrencies and its value is equal to 0.005 BTC.

Uniswap

In 2020, decentralized exchange platform Uniswap wanted to thank those who have trusted it since its launch in November 2018. Nearly 250,000 active Uniswap members received 400 UNI, equivalent to over $1,500 per person.

Looks

On June 16, 2021, the LooksRare marketplace offered a high-profile airdrop: anyone who made a transaction worth at least 3 ETH (Ethereum) on the NFT platform OpenSea, and which were put up for sale NFTs on LooksRare, was eligible to receive thousands of LOOK tokens. Admittedly, this token was of only minor importance: it ranked 230th in the rankings. cryptocurrencies in July 2022. At the same time, its cost was still equal to 0.3 dollars, which is not entirely negligible.

El Salvador

inthe fall In 2021, in order to encourage the adoption of bitcoins by the population of El Salvador, the government of this country awarded everyone who installed a corresponding wallet worth about $ 30 per BTC.

OpenDao December 23, 2021

In December 2021, OpenSea users were rewarded: they could claim SOS tokens in proportion to their activity in OpenSea. Over 120,000 wallets benefited from it.

Airdrop types

As we saw in the examples above, there are several types of airdrops. The main ones are as follows.

  • Airdrop standard – no analogue

In this type of airdrop, tokens are distributed for free without any request from the user. As with AuroraCoin, all you need is a wallet to be able to benefit from it. Same way, when Dapper Labs launched CryptoPunksthey were originally offered for free.

There may be a time factor associated with an airdrop: the offer is valid for a certain number of days or until the supply is exhausted. volume offered tokens. Sometimes a lottery is associated with such a distribution.

  • Airdrop as a reward

This type of giveaway seems to be the most commendable: as with Uniswap or OpenDAO, it aims to thank those who supported this project by giving away free tokens. In this way, the platform or currency expresses its gratitude to those who kindly supported it in its origins.

  • Airdrop with task completion condition

In this type of airdrop, tokens are awarded to those who agree to complete a certain number of specific tasks. For example :

  • subscribe to a cryptocurrency twitter account;
  • share or retweet a tweet;
  • post a message praising the virtues of this currency on a social network or forum;
  • create an account on a cryptocurrency platform;
  • subscribe to the newsletter;
  • make a transaction, even a small one, to a cryptocurrency platform or wallet…

In English, we speak of a bounty to refer to such an airdrop.

Does participating in an airdrop involve any risks?

At first glance, it might seem that airdrops are good. However, over the years, this practice has become suspicious.

First of all, airdrops that are conditional on completing a certain number of actions are usually a waste of time. Sometimes it takes a good ten minutes or more to sign up for an account. Twitter or forum Discord currency, post or rebroadcast tweets, post blog entries, and store evidence of all of these activities to eventually receive multiple currency tokens, the cost of which is minimal.

Sometimes it happens that the airdrop asks to send small amounts of the established currency (Bitcoin, Ethereumetc.) to an address that will thus be well stocked. However, the one who arranged the corresponding operation may disappear overnight, having previously pocketed his winnings.

It also happens that users get a lot of free tokens of the new currency, which increases its rating, as it can qualify for a large number of users. However, once that currency reaches a certain threshold, the initiator of the transaction sells their holdings for a decent profit while the currency in question collapses – a practice commonly referred to as “carpet pulling”.

Where to find airdrops?

There are various sites listing airdrops, including airdropalert.com, airdrops.io Where airdropbob.com. Some of them may alert you via email to new features.

In addition, when you are an active user of certain blockchains, it is possible that from time to time the respective platform informs you about an upcoming airdrop.

To avoid risky airdrops, it’s best to do your research on the currency in question, even if that means consulting on dedicated Reddit or Discord forums and getting input from other users.

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