Everything you need to know about airdrops in this video from our friend Heidi over at CryptoTips!
One major reason why projects decide to do airdrops is the free marketing they can produce.
Imagine you’ve just discovered some new kind of tokens in your wallet, you have no idea what the tokens are, how much they’re worth, what they’re used for and so on. So naturally, you get online and use your DuckDuckGo browser (because you’re not a fool for Google anymore, amiright?) and you search it. Now imagine if these tokens were airdropped to thousands of addresses. It might be enough to get some attention going, maybe even go viral.
Now imagine after you’ve searched it you mention it to your other friends who are into cryptocurrency. Suddenly you’ve multiplied the number of people who have now heard of the token, and now they could go and search it out on the web also. Just like that, there’s a buzz going about this new token.
I’ve got to add that this is without a doubt the best kind of airdrop. You get free tokens just because you happen to hold the right kind of cryptocurrency in the right type of wallet. I’ll get into wallets in a bit. This isn’t the situation that’s too good to be true, it’s actually a pretty good situation to be in!
Then there are some projects who design their airdrops so that if you jump through certain hoops they’ll reward you with “free” tokens. Keep in mind that some of these hoops definitely compromise your privacy and often times make you out to be one of those shills that people love so much.
These are the projects that use airdrops for the benefit of free, more organic seeming marketing.
Sometimes they just ask for your email, sometimes they ask for your first and last name, sometimes they ask that you post about their project (if you have enough followers to qualify) sometimes they ask you to like, or retweet a post. Sometimes they require a certain amount of referrals to their telegram channel or other social media accounts. Sometimes they ask you to give them access to your friend lists on Facebook.
This is when I’m going to suggest that you tread lightly. Think about what they are asking of you, and why that is so valuable to them. Most of the time what you get in return pales in comparison to the value that you’ve provided them.
On a lighter, more positive note, projects may also choose to go the route of airdrops in order to encourage a wider distribution of their tokens in order to avoid heavy hands from controlling the price.
One more tip:
if you receive an airdrop, wait until those tokens hit some exchanges. That’s when you’ll see what the volume is like and the true market value of the token which you received for free.
Lastly and most importantly, this is how you spot an airdrop scam:
#1 If they will ask you to send them cryptocurrency first.
#2 If they ask you to send them your private keys/seed phrase
If you ever come across an airdrop that requires you to do either of these, do not participate and if you want to help others out, spread the word that it’s a scam.