Are crypto-airdrops a rip-off? This is absurdly fantastic to be true!! Why not just give me free Cryptocurrency if I don't have to pay anything? What are Cryptocurrency Airdrops, and what have you heard about them? Is it a rip-off or not?
Cryptocurrency Airdrops
In the cryptocurrency world, an airdrop is a marketing campaign in which money or tokens are sent to wallet addresses in order to raise awareness of a new virtual currency. Minor amounts of the new virtual currency are delivered for free or in exchange for a small services therefore Tasks are always assigned, such as retweeting a post, joining a telegram group, or commenting on a post issued by the company creating the currency, to the wallets of active members of the blockchain community. Airdrops are usually advertised on the company's website and on cryptocurrency forums, and the coins or tokens are only distributed to existing holders of crypto wallets, mainly bitcoin or ethereum wallets. Visit for additional details investopedia
Understanding Cryptocurrency Airdrops
A reputable crypto airdrop will never ask for money in exchange for the currency. Its sole purpose is to promote something. On the other hand, in what is known as a dusting scam, some crypto frauds involve delivering tiny quantities of bitcoin or other cryptocurrencies to unwary receivers. Unsolicited deposits into users' crypto wallets should always be avoided. Coins and tokens are commonly used by blockchain and crypto startup companies for a variety of objectives.
Airdrops of coins or tokens are common among blockchain and crypto businesses. Some of the reasons they do so are as follows:
1.) To entice others to buy their coin or token sale: (mainly relevant to projects with low/no good funding) projects send airdrops to those who help increase knowledge about them, hence exposing their coin or token sale to a broader variety of people who might invest in it. To earn airdrops geared at doing this, you must participate in/complete actions that will grow the project's audience, such as joining/following their social media accounts, engaging on their posts, and other tasks that will expose them to a larger audience.
2.) To increase people's confidence in committing money to their service/product: (mostly applicable to defi projects) Before investing in a project, the majority of people would rather watch a few people do so and see how it plays out over time. Many crypto projects, such as DEX, lending/staking protocols, and liquidity pools, airdrop coins or tokens to the first people who used their services/utilities before others to encourage them to stay. To be eligible for this, you must stake, provide liquidity, mine, bridge assets, store assets, and trade assets using/trusting their services.
3.) To reward and encourage their community to continue supporting the project: in order to keep their community, they must reward them.
What are the risk in Airdrops?
In the crypto ecosystem, not all airdrops are created equal. Scams are perpetrated using these marketing methods by some unscrupulous organisations. Untrustworthy sources frequently declare an airdrop in which users must contribute a particular quantity of their own cryptocurrency, such as ether or bitcoin, in exchange for their tokens. This is frequently a ruse used by con artists and con artists to steal your money. These scams can be avoided by conducting thorough research and due diligence on the firm hosting the airdrop. Before participating in an airdrop, you should verify forums and official websites to ensure that it is legitimate. Some are out to steal your money and your investments.
ICO vs Airdrop
Initial coin offers (ICOs) and airdrops may appear to be identical on the surface, but they are vastly different. ICOs are events in which a corporation offers to sell its new virtual currency to investors in exchange for alternative currencies or tokens. Companies use ICOs to raise funds from investors in order to expand their businesses. These are similar to stock market first public offerings. Airdrops, on the other hand, are solely promotional in nature, with a virtual currency being distributed to wallet holders for free in order to raise awareness of a blockchain project, coin, or token.