{"id":6303,"date":"2022-03-24T14:34:22","date_gmt":"2022-03-24T12:34:22","guid":{"rendered":"https:\/\/godex.io\/blog\/?p=6303"},"modified":"2022-03-24T14:34:22","modified_gmt":"2022-03-24T12:34:22","slug":"what-is-crypto-airdrop-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work","title":{"rendered":"What Is Crypto Airdrop and How Does It Work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_25_1 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of Content\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#how_does_airdrop_crypto_work\" title=\"How Does Airdrop Crypto Work?\">How Does Airdrop Crypto Work?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#what_are_airdrop_crypto_used_for\" title=\"What are Airdrop Crypto used for?\">What are Airdrop Crypto used for?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#advantages_and_disadvantages_of_crypto_airdrop\" title=\"Advantages and Disadvantages of Crypto Airdrop\">Advantages and Disadvantages of Crypto Airdrop<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#what_are_different_types_of_crypto_airdrops\" title=\"What are different types of Crypto Airdrops?\">What are different types of Crypto Airdrops?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#bounty_airdrop\" title=\"Bounty Airdrop\">Bounty Airdrop<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#standard_airdrop\" title=\"Standard Airdrop\">Standard Airdrop<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#exclusive_airdrop\" title=\"Exclusive Airdrop\">Exclusive Airdrop<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#holder_airdrop\" title=\"Holder Airdrop\">Holder Airdrop<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#hard_fork_airdrop\" title=\"Hard Fork Airdrop?\">Hard Fork Airdrop?<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#how_do_you_get_your_crypto_airdrop\" title=\"How do you get your Crypto Airdrop?\">How do you get your Crypto Airdrop?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#faq\" title=\"FAQ\">FAQ<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#how_to_get_airdrop_crypto\" title=\"How to get airdrop crypto?\">How to get airdrop crypto?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#can_airdrops_make_you_rich\" title=\"Can airdrops make you rich?\">Can airdrops make you rich?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/godex.io\/blog\/what-is-crypto-airdrop-and-how-does-it-work\/#is_crypto_airdrop_safe\" title=\"Is crypto airdrop safe?\">Is crypto airdrop safe?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Crypto airdrop involves the free distribution of new coins or tokens to users who own a certain coin. In fact, this is a common marketing campaign organized by young crypto startups or large companies to promote a completely new coin that is not yet on the exchanges, and so far only a pre-sale of tokens is being carried out. The purpose of such a campaign is to create hype and gain public attention, increase the total turnover of the cryptocurrency, as well as stimulate token trading and community development.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_does_airdrop_crypto_work\"><\/span><span style=\"font-weight: 400;\">How Does Airdrop Crypto Work?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In addition to boosting user interest in the crypto space, the airdrop also adds value to the token at an early stage so that holders can quickly start trading it. Therefore, startups adopt airdrop tactics to improve the standing of their project in the crypto space.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When developers are ready to start the giveaway, they write promotional posts about the upcoming coin on their project website or on third-party websites. The message is then posted on social media so that crypto enthusiasts can find out about the emergence of a new currency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it comes time to launch a crypto, developers send multiple tokens to users of a particular blockchain platform.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"what_are_airdrop_crypto_used_for\"><\/span><span style=\"font-weight: 400;\">What are Airdrop Crypto used for?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Airdrops are used by startups for advertising purposes to promote their new crypto project in a short time and attract more investor capital. When a startup enters the market, it needs to gain some fame before users start trading it. People who receive free tokens become fans of the project, and its popularity begins to grow. Crypto projects also use airdrops to reward their users.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Airdrop cryptocurrencies allow users to make a profit for the minimum number of actions they take. The received tokens can be sold immediately after they are listed on the exchange, they can be exchanged or left for long-term storage. If governance tokens are airdropped, their holders receive voting rights that they can use to influence important decisions regarding the project.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"advantages_and_disadvantages_of_crypto_airdrop\"><\/span><span style=\"font-weight: 400;\">Advantages and Disadvantages of Crypto Airdrop<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are some of the obvious crypto airdrop benefits:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Getting free cryptocurrency. A small amount of cryptocurrency can lead to profits if the value of the asset rises.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Minimum effort required. To participate in the airdrop, users do not need to do anything at all (in the case of automatic distributions) or perform just a couple of simple actions (in the case of promotional ones).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, airdrops are not without some awfully significant drawbacks:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The need for an account that has already established a successful following in social networks. When distributing free tokens, developers sometimes use the proportionality method: tokens are awarded in proportion to the number of friends or subscribers. Therefore, the owner of an account with 500,000 friends can get a fairly good profit, while a user with accounts with only 500 subscribers will receive &#8220;crumbs from the master&#8217;s table.&#8221;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A large number of crypto projects that failed. Not all cryptocurrencies that have conducted an ICO are listed on the exchanges or become successful.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Too many scam airdrops. Often giveaways of free tokens are created with the aim of cashing in on gullible and inexperienced users. Participants are asked to provide personal information, which is then used to break into their wallets, spread viruses and steal money from users&#8217; accounts.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"what_are_different_types_of_crypto_airdrops\"><\/span><span style=\"font-weight: 400;\">What are different types of Crypto Airdrops?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Airdrops can be achieved in a variety of ways. The most common one is to deposit free tokens into the user&#8217;s wallet for completing various tasks, such as registering an email address or posting on social networks. Here are some types of airdrops:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"bounty_airdrop\"><\/span><span style=\"font-weight: 400;\">Bounty Airdrop<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As part of the bounty, users are required to complete a specific task in exchange for free coins. For example, tweet about a new project or post on Instagram and tag your friends.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This type of airdrop is used to create buzz around a project: the more people who know about it, the better for the developers.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"standard_airdrop\"><\/span><span style=\"font-weight: 400;\">Standard Airdrop<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This type of airdrop requires users to subscribe to a newsletter or register on the project website in exchange for tokens.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The purpose of using this type of airdrop is to attract new users.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"exclusive_airdrop\"><\/span><span style=\"font-weight: 400;\">Exclusive Airdrop<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These airdrops are designed exclusively for certain user groups, such as loyal users of a particular community, website or project.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The purpose of using this type of airdrop is to reward and retain loyal users.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"holder_airdrop\"><\/span><span style=\"font-weight: 400;\">Holder Airdrop<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Holder airdrop is when users who already have certain tokens in their crypto wallets get new ones.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This type of airdrop is meant to reward holders of a particular token or coin for their loyalty. Therefore, an airdrop participant is required to hold a certain amount of tokens or coins during the event.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"hard_fork_airdrop\"><\/span><span style=\"font-weight: 400;\">Hard Fork Airdrop?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Some define another type of airdrop &#8211; hard fork airdrop. However, it is different from a regular airdrop. Since it is not a way to advertise a new crypto, but the result of a new branch of an existing crypto using the same base code. As a result of the fork, all holders receive an amount of crypto in direct proportion to what they had in their wallets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose token X is the cryptocurrency of blockchain A. When it is hard forked, token Y is created in the same blockchain. After such a hard fork, the owners of token X will receive an equal amount of token Y.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A fairly well-known example of such a fork is Bitcoin Cash (BCH). The Bitcoin blockchain hard fork took place in 2017, and users who already had Bitcoin received an equal amount of coins in their wallets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An airdrop occurs when a new crypto token is deposited directly into users&#8217; wallets. If the virtual currency forks in two, an airdrop can be used to send the new cryptocurrency directly to users&#8217; wallets.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_do_you_get_your_crypto_airdrop\"><\/span><span style=\"font-weight: 400;\">How do you get your Crypto Airdrop?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">\u00a0In order for you to receive your virtual coins, you need to fulfill a number of conditions. And, of course, you must have a digital wallet. The airdrop is taking place on various platforms, but most of the new assets are ERC20 tokens. MyEtherWallet is the best for them. Create an <a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/godex.io\/coin\/eth\">Ethereum<\/a> wallet and specify its address when participating in the Airdrop of altcoins created on Ethereum.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can earn money by attracting new participants to the airdrops of crypto-currencies that distribute tokens for free. Everyone must be registered on social networks, a BitcoinTalk account and a Telegram page may also be required.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Airdrop rules in different blockchain networks may differ somewhat, but in general, the scheme is identical. You collect tokens for about an hour a week and after a certain time they come to your account. Most often, you need to enter the forum and leave your comment there, as well as subscribe to Telegram and other social networks. Coins will not be transferred to you immediately, but after the completion of the ICO. After that, you still need to wait for the release of this cryptocurrency on the exchange, which, frankly, does not always happen. But it happens that users misjudge the prospects of a new project and rush to sell the tokens received in the Airdrop as soon as they appear on the trading floors, and then they rise sharply in price.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"faq\"><\/span><span style=\"font-weight: 400;\">FAQ<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"how_to_get_airdrop_crypto\"><\/span><span style=\"font-weight: 400;\">How to get airdrop crypto?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In order to participate in airdrop crypto, certain conditions must be met. Usually you need to own a certain asset or amount in your crypto wallet. Also, some projects may require you to complete simple tasks, such as writing a post about a forthcoming crypto project.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"can_airdrops_make_you_rich\"><\/span><span style=\"font-weight: 400;\">Can airdrops make you rich?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The probability of actually getting rich on an airdrop is extremely small. To earn decent money, you will need to register for dozens or hundreds of airdrop events. It will take a lot of time to meet the conditions, and there is no guarantee that most of these projects will &#8220;explode&#8221;.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"is_crypto_airdrop_safe\"><\/span><span style=\"font-weight: 400;\">Is crypto airdrop safe?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Free tokens are not safe, as they are often used by scammers who want to cash in on users&#8217; trust. But if you follow the safety rules by participating only in real airdrops, you can avoid the traps of scammers.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Table of Contents How Does Airdrop Crypto Work?What are Airdrop Crypto used for?Advantages and Disadvantages of Crypto AirdropWhat are different types of Crypto Airdrops?Bounty AirdropStandard AirdropExclusive AirdropHolder AirdropHard Fork Airdrop?How do you get your Crypto Airdrop?FAQHow to get airdrop crypto?Can airdrops make you rich?Is crypto airdrop safe? Crypto airdrop involves the free distribution of new [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":6304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1873,134],"tags":[1921,505,812],"yst_prominent_words":[],"class_list":["post-6303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides","category-popular-posts","tag-crypto-airdrop","tag-cryptocurrency","tag-ethereum"],"lang":"en","translations":{"en":6303},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/6303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/comments?post=6303"}],"version-history":[{"count":1,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/6303\/revisions"}],"predecessor-version":[{"id":6305,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/6303\/revisions\/6305"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media\/6304"}],"wp:attachment":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media?parent=6303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/categories?post=6303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/tags?post=6303"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=6303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}