Imagine a world where you can discover hidden treasures in cryptocurrency just waiting to be claimed. Airdrops have become a popular way for new projects to distribute their tokens and gain exposure in the crypto community. In this article, we will guide you through the exciting world of airdrop hunting, with the potential to earn 100X gains on your time investments.
As a newbie in the crypto space, navigating the world of airdrops can be overwhelming. But fear not. We provide a detailed step-by-step guide to help you become an expert airdrop hunter. So, buckle up and prepare to embark on a thrilling journey that could change your financial future.
In the United States and other countries, airdrops are considered income. This means that if you receive free tokens, you will be taxed on their fair market value at receipt.
But how do you go about hunting for these airdrops? Where do you find them, and what must you do to participate? Let’s dive into the world of airdrop hunting and explore how you can maximize your chances of success.
What is Crypto Airdrop
A crypto airdrop is a promotional technique employed by cryptocurrency projects to generate publicity for their newly introduced digital asset or project. It entails distributing a small portion of coins or tokens to wallet addresses that fulfill specific eligibility criteria. Additionally, crypto airdrops ensure an equitable distribution of coins and tokens among the project’s community members.
What are the types of crypto airdrops?
Crypto projects utilize various types of airdrops as part of their strategies to engage with the crypto community. Understanding the different types of crypto airdrops can provide valuable insights into how projects distribute their tokens and engage with their audience. Here are the four main types of crypto airdrops commonly employed by projects:
Standard Airdrop:
The standard airdrop is open to anyone who wishes to participate. It typically requires users to sign up for an account with the project, and in return, they receive a small amount of the project’s new crypto. It’s important to act quickly as spaces for participation are often limited.
Bounty Airdrop:
Bounty airdrops serve as marketing tactics where participants must engage in promotional activities to receive crypto assets. These activities can range from subscribing to newsletters to sharing project posts on social media platforms like Twitter, Facebook, and Instagram.
Holder Airdrop:
Holder airdrops reward participants for holding a specific project’s token or coin. These airdrops are commonly associated with projects undergoing a hard fork or launching on a new blockchain. The distribution amount is usually predetermined through a snapshot of participants’ wallet addresses.
Exclusive Airdrop:
In an exclusive airdrop, a project selects a specific group of individuals to receive their tokens. This type of airdrop is more centralized and targets individuals with a close connection or high engagement with the project. Criteria for selection can include factors like active project involvement, engagement level, or financial contributions to non-token activities.
An example of an exclusive airdrop is the Uniswap airdrop, where over 250,000 early exchange users received an airdrop of Uniswap tokens (UNI) in September 2020.
Understanding these different types of crypto airdrops allows participants to know the requirements and opportunities associated with each type. By staying informed, individuals can maximize their chances of participating in airdrops and receiving tokens from promising projects.
These types essentially involve completing tasks using the Metamask wallet with the Ethereum faucet (Goerli ETH). When a crypto project allocates a community fund within its tokenomics, they reward participants with free tokens as part of the airdrop economy.
What is the purpose of airdrop in cryptocurrency?
There are two purposes of an airdrop: marketing and education. The first purpose is to promote the project to a wider audience. The second purpose is to educate people about the project and its features, such as swapping, staking, and DeFi farming. When the project goes live, the company will give away free tokens to users. MetaMask is a popular Dapp based on Ethereum and is a crucial tool for participating in airdrops.
When a crypto or blockchain project decides to launch via an airdrop, the first step is to initiate a public campaign. The project team utilizes platforms like Discord, Reddit, Twitter, and forums to promote their crypto projects.
During the public campaign, the team determines the type of crypto airdrop to employ and compiles a list of potential token recipients. Additionally, the campaign can be used to gather more information about these potential users and their interest in the project’s products or services.
Next, the project creates a smart contract or a self-executing program to automate the airdrop process. The team then sets a specific time for the smart contract to distribute the tokens or coins from the company’s treasury wallet to the chosen participants. To maintain the community’s trust they have built throughout the campaign, the team publishes the transaction block results of the airdrop.
What is an airdrop, and why do crypto projects do them?
An airdrop is a marketing strategy where a crypto project gives away free tokens to users. This is done to raise awareness of the project and to build a community around it.
There are several reasons why crypto projects might do an airdrop.
1. To raise awareness
The crypto industry is crowded, and it can be difficult for new projects to get noticed. An airdrop is a great way to get the word out about a new project and to generate excitement among potential users.
2. To build a community
Users who receive free tokens are more likely to become invested in the project and its success. This can lead to a strong community of supporters willing to help promote the project and spread the word.
3. To get feedback
Airdrops can also be used to get feedback from users about a project’s products or services. By giving away free tokens, projects can get real-world data on how users use their products or services. This feedback can improve the products or services before they are released to the public.
Airdrops are a valuable tool that can be used for various purposes. By understanding the benefits of airdrops, projects can use them to their advantage and achieve their goals.
Read More: Top 20 Crypto Research Tools To Help You Find The Best Coins
What are the steps to join free crypto promotion?
To participate in crypto airdrops, you can explore different types, such as standard and bounty airdrops. Your involvement in a particular project may qualify you for holder and exclusive airdrops.
If you’re interested in participating, the first step is to discover upcoming projects before they launch. Websites like DappRadar and Airdrop.io can help you track airdrops. However, conducting your research is essential to verify the legitimacy of the project offering the airdrop.
Once you meet the requirements to become eligible for the airdrop, provide your crypto wallet address. In most cases, the project will notify you once the airdrop has been sent to your wallet.
Before finding any potential airdrop, you need to have a basic understanding of MetaMask, how to use it, and how you can interact with different blockchain projects with its help. The wallet is like a Google account; you must have it.
Additionally, we also need some free Ethereum, which is a test ETH, called Goerli faucet. Learn more by reading the Alchemy blog here.
Furthermore, Airdrop.io is the best airdrop guide site to maximize your chances of winning an upcoming airdrop. You can also follow some good Twitter accounts to stay up-to-date on the latest airdrops. Here are a few good Twitter handles to follow:
- @Faycy_crypto: This account also tweets about new airdrops, but they also provide more information about each airdrop, such as the requirements to participate and the value of the tokens being airdropped.
- @KashKysh: This account also provides an airdrop guide.
By following these Twitter accounts and airdrop’s focus websites, you can stay up-to-date on the latest airdrops and increase your chances of winning free tokens.
The Most Successful Airdrop Campaign
Hundreds of airdrops have been made in the past few years, but some have had a much greater impact than others. Here are three of the most successful airdrops to date:
Uniswap
Uniswap was one of the first major airdrops in the decentralized finance (DeFi) era. It took place on September 1, 2020, and distributed 60% of the total supply of UNI tokens to users who had interacted with the Uniswap platform before that date. The average user received 400 UNI tokens, worth around $1,600.
Optimism
Optimism is a layer-2 scaling solution for Ethereum. It launched its OP token through an airdrop on May 31, 2022. A total of 231,000 addresses were eligible to claim 214 million OP tokens. The average user received 930 OP tokens, worth around $1,200 at the time.
Arbitrum
Arbitrum is another layer-2 scaling solution for Ethereum. It launched its ARB token through an airdrop on March 23, 2023. 13% of the total supply was distributed to users who had performed certain tasks ahead of a snapshot and to DAOs who helped build different decentralized applications on the network. The minimum amount received was 1,250 ARB, while the maximum was 10,250 per address. The token started trading at $1.2, netting everyone who received a bare minimum of $1,500.
These are just a few examples of the many successful airdrops that have taken place in recent years. Airdrops can be a great way for new projects to raise awareness and build a community, and they can also be a lucrative opportunity for early adopters. However, it’s important to do your research before participating in any airdrop, as many scams exist.
Here are discovered more potential airdrops you have a maximum chance of achieving.
Read More: What is Blockpour and how to hunt DeFi early 100X tokens like a pro
Top 10 Upcoming Crypto Airdrops in 2023
StarkNet ID
The StarkNet ID protocol aims to function as a flexible identification system for StarkNet, providing users with a convenient means to store and exchange their preferred data within the StarkNet ecosystem. This protocol also facilitates efficient access and utilization of this data by different protocols.
Although the StarkNet ID currently does not have its token, there have been indications of potential rewards for early adopters. Users who have already minted a domain on both the mainnet and testnet may be eligible for an airdrop if they launch their token.
- Airdrop unconfirmed
- Platform: StarkNet
Dune Analytics
Dune Analytics is an incredibly robust blockchain research tool that offers a comprehensive suite of features to uncover, delve into, and present extensive volumes of blockchain data. With Dune Analytics, individuals possessing even a basic understanding of SQL, the Ethereum Virtual Machine, and business concepts can engage in intriguing analyses of blockchain data.
Over three funding rounds, Dune Analytics has successfully secured a noteworthy $79.4 million in funding. Given this substantial achievement, there is a strong likelihood that they may introduce their token in the future. Early adopters who have registered and crafted queries on the platform may even qualify for an airdrop should Dune Analytics proceed with launching their token.
- Status: No airdrop
- Confidence: Medium
- Sector: Analytics
- Chains: ETH
zkSync
zkSync represents a cutting-edge ZK roll-up solution, leveraging cryptographic validity proofs to ensure trustless transactions that are both scalable and cost-effective on the Ethereum network. By shifting computations off-chain and storing most data off-chain, zkSync enables efficient and secure transactions. The protocol ensures the same level of security as Ethereum since all transactions are verified on the Ethereum mainchain.
To fuel its growth and development, zkSync has successfully raised an impressive $458 million from renowned investors such as Blockchain Capital and Dragonfly Capital. Excitingly, they have also indicated plans to introduce their native token. By exploring zkSync’s mainnet and testnet, you may even become eligible for an airdrop when their token is launched.
Discover the power of zkSync’s innovative approach to scaling Ethereum while maintaining security. Stay tuned for updates on their native token launch and participate in their network to potentially benefit from their upcoming airdrop.
- Status: Unconfirmed
- Confidence: Medium
- Sector: Layer 2
- Chains: ETH
EigenLayer
EigenLayer is an innovative protocol built on the Ethereum blockchain, introducing a groundbreaking concept known as restaking. This novel feature is a new element in ensuring crypto-economic security within the network. By implementing restaking, EigenLayer allows for the reuse of ETH on the consensus layer, allowing users to stake their ETH or liquid staking tokens (LST) and extend crypto-economic security to various applications on the network. As a result, participants can earn additional rewards through this process.
Currently, EigenLayer does not have its native token, but there are potential plans for its future launch. The protocol has recently unveiled a Stage 1 testnet and is progressing towards the imminent launch of the Mainnet. Early users who actively engage with the testnet by performing various actions may be eligible to receive an airdrop if EigenLayer decides to introduce its token.
- Status: Unconfirmed
- Confidence: Medium
- Sector: Layer 2
- Chains: ETH
TiTi Protocol
TiTi Protocol is an innovative decentralized platform that operates as a multi-asset reserve collateral-backed algorithm stablecoin, enabling users to earn rewards through its unique use-to-earn mechanism. Its primary goal is to offer diversified and decentralized financial services by leveraging a crypto-native stablecoin system and implementing an independent monetary policy. The stablecoin issued by TiTi Protocol is known as TiUSD.
Exciting news from TiTi Protocol! They have officially announced the upcoming launch of their token called “TiTi.” Users who have actively participated in the testnet activities will have the opportunity to receive an airdrop once the token is launched. Stay tuned for further updates on this exciting development!
- Status: Confirmed
- Confidence: High
- Sector: Layer 2
- Chains: ETH
Scroll
Currently, Scroll does not have its token; however, there is a possibility that it may introduce one in the future. With substantial funding of $80M from renowned VCs like Polychain and Sequoia, Scroll will probably launch its token. Early users who have actively participated in testnet actions may be eligible for an airdrop in the event of such a launch.
- Status: Unconfirmed
- Confidence: Medium
- Sector: Layer 2
- Chains: Own chain
ZetaChain
The prevalence of interoperability protocols based on Omnichain is increasing, and ZetaChain is among the initiatives dedicated to establishing a secure and streamlined communication system across diverse blockchain networks. This smart contract platform enables seamless data exchange between smart contracts and other blockchain networks. What sets ZetaChain apart from similar endeavors is its provision of support for its proprietary smart contracts and extensive interaction capabilities for applications developed utilizing its protocols.
- Status: Unconfirmed
- Confidence: Medium
- Sector: Layer 1
- Chains: Own chain
Shardeum
Shardeum, an EVM-based smart contract platform, offers linear scalability, ensuring perpetual low gas fees. It prioritizes genuine decentralization and robust security through dynamic state sharding.
Additionally, Shardeum has announced its upcoming token, “SHM,” and hinted at the possibility of conducting an airdrop. Users who have participated in testnet transactions on the platform may be eligible to receive an airdrop once the token is officially launched.
- Status: Unconfirmed
- Confidence: Medium
- Sector: Layer 1
- Chains: Own chain
Cedro Finance
Cedro Finance presents a revolutionary cross-chain decentralized liquidity protocol that enables users to engage in lending and borrowing activities involving various assets across multiple chains. One of the remarkable advantages of this platform is its affordability when it comes to transaction fees. Lenders have the opportunity to deposit their assets, thereby contributing to the overall liquidity of Cedro Finance. On the other hand, borrowers can access liquidity overcollateralized, ensuring a secure borrowing process.
Exciting news from Cedro Finance! The platform has announced its plan to launch a token called “CED” shortly. As a bonus, early users who actively participate in testnet actions may be eligible for an airdrop when the token is launched.
- Status: Unconfirmed
- Confidence: Low
- Sector: Lending
- Chains: ETH
AltLayer
AltLayer is an innovative Rollup-as-a-Service (RaaS) platform explicitly designed for decentralized application developers. Its primary purpose is to facilitate the launch of application-tailored execution layers, also known as Layer 2s, that offer highly scalable solutions. By utilizing AltLayer, application teams can save substantial amounts of capital and years of development effort while fostering a culture of innovation and enabling rapid experimentation.
AltLayer has secured $7.2 million in funding from renowned investors such as Polychain Capital and Balaji. As part of its plans, AltLayer intends to introduce its token. Early users who have actively participated in the testnet activities and have claimed their non-fungible tokens (NFTs) may potentially qualify for an airdrop when AltLayer launches their token.
- Status: Unconfirmed
- Confidence: Low
- Sector: Layer 2
- Chains: Own chain
Disclaimer: How to make money from crypto airdrops
The information provided on this page is for informational purposes only and does not constitute financial advice. Crypto airdrops are a risky investment, and there is no guarantee that you will make any money. Do your research before participating in any airdrop.
We are not affiliated with any of the projects mentioned on this page. We are not responsible for any losses or damages from participating in any airdrop.
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