Introducing Airdrops.
In the crypto world, the term “Airdrop” refers to the public distribution of digital assets. They are a popular marketing technique, but you can also make money from them.
What are they used for?
Airdrops have recently grown in popularity. Crypto projects use them to increase adoption and incentivise their communities to promote their project. They use the free distribution of new crypto tokens as a marketing tactic to drive awareness and quickly build communities.
How do they work?
Airdrops typically target members of a particular blockchain platform. Sometimes, recipients may be required to hold certain tokens or a minimum balance to be eligible for the airdrop. In other cases, participants may need to complete small tasks such as posting about the project on social media.
Note that airdrops are different from ICOs. Initial Coin Offerings are subject to heavy monitoring as a result of multiple scams. Airdrops offer an alternative means of releasing coins for development teams wanting to avoid the ICO method.
NFTs & Airdrops
Airdrops are popularly used to reward users for having been loyal or early contributors to a project. You can airdrop any type of token whether it be fungible or non-fungible (NFT). NFT projects can also choose to airdrop tokens that give early users/contributors access to early minting.
Airdrop Risks
Of course, airdrops are not without risks. It’s important to watch out for dusting and phishing attacks. Be cautious when searching for an exchange or project on Google. Fake sites often pay to advertise on search engines and social media to trick victims.Also, be very careful when choosing which airdrops to sign up for. If an airdrop requires you to send funds, it is almost certainly a scam.
Some users create a new wallet, especially for airdrops, to avoid targeting through phishing and dusting. And as always, make sure to do your own research.
Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.
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