What Is an Airdrop?

Last Modified:
April 1, 2024

Airdrops are a way for crypto startups to distribute their own tokens for free in order to attract new users and generate buzz about their project. Many have earned hundreds or thousands of pesos simply by joining airdrops and waiting for the price of the tokens to soar in value. 

But simply participating in as many airdrops as you can is no guarantee that you will reap a huge profit in the future. After all, of the many new Web3 projects launched each year, only a few actually succeed. Most fail or are abandoned by their founders after the initial excitement, leaving those who participated in the airdrops with countless tokens in their crypto wallets with no actual value.

How do airdrops work?

Airdrops are the equivalent of promotional giveaways when a business launches a new product and wants to attract potential customers or incentivize old ones to stay loyal. During a crypto airdrop, a new project sends tokens directly to participating wallet addresses. The recipients may be selected at random or chosen based on several criteria. 

They may either set a fixed amount of time to participate or limit the number of eligible participants. For many airdrops, all you need to do to join is to provide your wallet address. 

Other airdrops require you to complete several tasks, such as:

  • Joining their community
  • Following them on social media
  • Liking or retweeting their posts
  • Tagging friends
  • Inviting others to join
  • Owning a certain cryptocurrency
  • Staking tokens
  • Other criteria

Twitter (X), Telegram, and Discord are good places to look for projects holding airdrops. There, you can find announcements directly on the project’s official social media accounts. You may also follow certain airdrop tracking accounts or join certain communities or channels to stay updated on new projects.

Is it safe to join airdrops?

Crypto airdrops can be a great way to discover new projects, but always prioritize security and do your research before joining. Here are a few considerations you need to keep in mind:

  • Beware of scams: There are fake airdrops designed to steal your crypto or personal information. Only participate in airdrops from legitimate projects with a good reputation.
  • Do your own research: Before joining any airdrop, research the project behind it. Understand what they're building and why they're doing an airdrop.
  • Make sure the time you spend is worth it. Airdrops that require you to complete multiple tasks can be time-consuming. Decide if the potential reward is worth the effort.

Crypto airdrops can be a source of passive income and a gateway to new communities and projects, but don’t forget to be vigilant and stay aware of the potential risks.

For more tips on investing or participating in new Web3 projects, check out our short guides:

A Primer on Tokenomics

What Is an ICO?

How to Join an NFT Community

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