Cryptocurrency Airdrops: A Few Things You Must Know

Essentially airdrops offer free money to certain token holders, so yes – you need to understand them.

cryptocurrency airdrops

A cryptocurrency airdrop is a procedure of distributing new tokens to existing holders of a particular blockchain currency, such as Bitcoin and Ethereum. In other words, when an airdrop happens, owners of some coin will be automatically eligible to claim other coins just because they were holding the parent coin on which airdrop is being done.

There are multiple reasons behind airdrops, including forks, marketing, decentralization, distribution, and more. Let’s take a look at what we see are the…

Top 4 Reasons for Airdrops

We have selected these 4 as the most popular reasons for airdrops:

1. Even distribution of tokens
One reason for airdrops is to evenly distribute the total token supply so that there is less centralization. For instance, Omise gave away five percent of their OmiseGO cryptocurrency to holders of Ethereum in September 2017.
(link Omise)

2. Rewarding early investors
Some projects include the rule to reward its early supporters and investors who first bought their tokens in an ICO. Offering free tokens is a powerful way to keep them happy and engaged.

3. Marketing
Whether it’s raising awareness or building hype around some project, there were situations when token owners were offered additional tokens free of charge to get some media attention. Also, some airdrops were used as bounties for doing minor tasks like signups, referrals, or joining a particular group on Telegram.

4. Hard forks
When a new cryptocurrency is created with hard fork, owners of the original token were rewarded with free tokens of the new token. Something like that happened with Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond and other Bitcoin variants.

Staying Updated About Airdrops

Since airdrops involve free cash to existing cryptocurrency owners, you may want to know how you can be in that group. For one thing, you should subscribe to our newsletter as we will definitely be talking about interesting projects that involve free money.

Also, there are other communities dedicated to airdrops, including Crypto Airdrops and AirdropAlert.com. You may want to check those two.

And/or, if you have more time, you may be tempted to join some cryptocurrency-themed forum or keep up with related news on Twitter.

Claiming Your Free Airdropped Crypto

As we have noted above, depending on the reason behind an airdrop, you may have to do different things in order to claim free money made as a result of an airdrop.

For instance, if an airdrop was created as a result of a fork, you will have to “prepare” your private keys and sign-up on the provided website.

Alternatively, other airdrops may require you to perform some task like signing-up for a service, tweeting / retweeting, referring a friend, joining a telegram channel, or completing other social media task. Typically, there is no much work required and the reward is well worth the effort.

Conclusion

Airdrops are popular for a reason, essentially offering free money to those already owning some token / cryptocurrency. In order to benefit from this trend, you should keep up with all the news and be willing to perform a few little tasks to get the goodies. And as we noted above, any such task is well worth the effort.

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