What is an airdrop?

Consider the following scenario. You’re strolling through the supermarket when a woman approaches you with complimentary samples of a new chocolate dip. You take a taste and then walk away. However, the flavor lingers, and you quickly decide to purchase a full bottle. The entire procedure provides you with a taste of the product and exposes the possible benefits of owning it, encouraging you to participate further. This is exactly what crypto airdrops are for.

To raise awareness of the currency and encourage others to acquire it, crypto firms give modest quantities of coins or tokens to crypto wallet holders. These currencies are given to active users of a blockchain network either for free or in exchange for a minor service.

Types of Airdrops

Airdrops come in a variety of sizes. You must have an active crypto wallet in order to receive airdrops. However, different types of airdrops have distinct needs. Some demand you to have a certain quantity of cryptocurrency in your wallet, while others merely want you to subscribe to a newsletter. Let’s look at the many forms of airdrops.

Standard Airdrops

A straightforward approach in which free coins or tokens are distributed to cryptocurrency holders. You would simply need to submit your wallet address or create an account with the platform in such circumstances.

Bounty Airdrops

A barter system of sorts, this strategy provides users with the digital asset in exchange for promotional activity like sharing a post on social media or joining a Telegram group.

Exclusive Airdrops

Such airdrops are meant to reward loyalty. They only distribute assets to those who follow and use specific websites or companies. These can often be airdrop aggregators or cryptocurrency exchanges like ZebPay. For example, in 2020, Uniswap airdropped its asset (UNI) to all wallets that had made at least one transaction on its platform before 1st September 2020.

Holder Airdrops

Holder airdrops go to those who already own specific cryptocurrencies, generally prominent ones like Bitcoin and Ether. For example in 2017, Omise gave five percent of their currency to holders of Ethereum.