Many crypto companies distribute free coins to their communities to increase their project’s visibility, increase the circulating supply and stimulate trade. These free distributions are commonly known as airdrops.
Most of the airdrops that we present are “bounty” drops, which will reward you with tokens for completing simple social media tasks (Joining their Telegram group, reposting on Twitter, etc.). This offering creates a win-win scenario because the company gets free marketing, and you get free crypto. Other airdrops will reward you for simply holding a specific coin without expectation of any reciprocal consideration.
Why are crypto projects and ICOs giving away coins for free?
Cryptocurrencies only hold value because people believe in them and recognize their worth. The more people who own a cryptocurrency, the more likely it is to become widely adopted and rise in value. Airdrops are effective due to the endowment effect, a phenomenon in which people will ascribe value to things merely because they own them.
By conducting a bounty airdrop, a DeFi startup can create mass awareness about their project, token sale or pre-ICO with minimal cost to them. Social media campaigns allow the project to become visible to people who would otherwise never recognize its existence. Airdrops can also create a vast network of users who are motivated to push a project’s success by doing things together like winning community votings for exchange listings.
By rewarding token owners with free airdrops, projects can also encourage users to hold (HODL) their coin for the long-term. This can effectively lower the selling pressure of the coin. Holder airdrops have been a popular tactic amongst some of the most successful crypto projects, like NXT, WAVES, Bitcore and more.
How do I claim airdrops?
The claim process differs from project to project. Some “holder drops” will drop tokens automatically into the wallets of users who own a specific coin. Other projects are snapshot based, and can only be claimed by users who held the required token during the snapshot, which is a record of token holders taken at a specific time/block.