What is an Airdrop?

Sun 08 Aug 2021 ▪ 5 min of reading ▪ by Nicolas

An airdrop is a marketing campaign run by a crypto company that aims to offer project tokens to new users. In order to take advantage of this offer, individuals need to meet several requirements that differ from company to company.

To participate in an airdrop programme, it is usually necessary to provide your email address, wallet address, personal ID, as well as join the company’s Telegram channel, follow it on Twitter, invite friends, etc. Social media and the actions required vary from one crypto company to another, but the idea behind an airdrop is always the same: to increase the number of people aware of the project in exchange for tokens.

Why do crypto projects offer airdrops?

As you might expect, a crypto project doesn’t airdrop just for the sake of being generous. The objective of a company that carries out an airdrop is to make itself known to the general public in order to increase its user base. The more people know about the project, the more hype there is around its cryptocurrency.

What’s more important, it is necessary to perform some actions to obtain airdrop tokens, the most common of which would be to join multiple social media pages. It is supposed to help the project gain credibility by attracting a larger follower count, which is considered important for reassuring people waiting on the sidelines.

In some cases, airdrops can also take place within an already existing user base to reward holder loyalty or promote a partner project.

Is it profitable to take advantage of an airdrop?

While an airdrop is primarily profitable for the company that implements it, it can be also advantageous for the people who take part in a campaign like this. Depending on the airdrop, the profits can range from a few dollars to several hundred in some cases.

Of course, the total amount that can be earned via an airdrop depends both on the asset and your own decision to book profits. However, in any case, each time it is basically free money that can be obtained in exchange for different tasks completed.

Some people participate in airdrops of several projects at the same time, which makes it possible for them to accumulate many different tokens and thus amass a pretty nice jackpot. However, it usually takes quite a long time and cannot be considered a full time job as it is always uncertain how much money can be obtained.

What are the disadvantages of airdrops for users?

If airdrops allow you to collect money for free in the form of project tokens, this is obviously not without its disadvantages. Here are some of the negative points:

· Your personal data may be used by certain projects to sell you other products;

· Time invested in trying to profit from an airdrop is sometimes too long and the rewards obtained are not worth it;

· You can quickly find yourself following many different projects on social media and your news feed unnecessarily cluttered;

· Some airdrops are scams that aim to obtain your personal data without offering anything in return, so it is vital to be extra careful;

· It is important to be organised because some projects involve performing different actions on specific dates in order to profit from the token offer, which can be hard to manage when participating in too many airdrops at the same time;

· Sometimes it is necessary to share certain posts of a crypto company on social media, which shows your acquaintances that you are operating in the crypto world, so it is not ideal if you want to remain discreet or avoid attracting ill-intentioned individuals.

Conclusion on the airdrop

We hope you enjoyed this detailed explanation of how an airdrop works and that you now have a better understanding of the logic behind such a marketing campaign for a crypto company.

Even though airdrops may bring benefits, we should still be aware that those who benefit the most from them are the crypto projects themselves. However, in some cases the money that can be obtained through an airdrop is nice and can help you top up your income with minimal effort.

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Nicolas avatar

J'ai découvert le monde des cryptomonnaies en janvier 2018. Arrivé au pire moment pour investir, je n'ai depuis lors jamais cessé de me former et partage désormais mes connaissances afin de faciliter l'adoption des cryptos.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.