“Airdrop” has become a buzzword that attracts both excitement and skepticism. As more projects embrace this distribution method, understanding its mechanics, benefits, and risks becomes crucial for every crypto investor. This article will guide you through the essence of crypto airdrops, their various types, and essential security measures to protect your assets.
What is a Crypto Airdrop?
A crypto airdrop is a distribution of tokens or coins to specific wallet addresses at no direct cost to recipients. The term “airdrop” stems from traditional marketing practices where promotional materials were distributed from aircraft – a parallel to how crypto tokens seem to “fall from the sky” into users’ wallets.
What Airdrops Give to Projects
Airdrops offer several benefits for crypto projects: they help projects establish an initial user base, foster community engagement, engage early supporters and active community members, generate market awareness and social media presence for a project.
👀 Here are the largest airdrops ever:
- The Uniswap airdrop in 2020 reached over 250,000 users and distributed $1.5 billion worth of UNI tokens.
- The Ethereum Name Service (ENS) airdrop in 2021 attracted over 1 million users and distributed $100 million worth of ENS tokens.
- The Arbitrum airdrop (ARB), one of the leading Ethereum Layer-2 solutions, launched a governance token airdrop on March 23, 2023. The airdrop, valued at $1.97 billion, targeted early users and rewarded users based on their activity on the platform
What Airdrops Give to Users
For newcomers, airdrops offer an opportunity to get an initial capital without investing their own funds. For more experienced users, airdrops present a chance to maximize the number of free tokens they can receive.
Some advanced crypto investors even build “airdrop farms” – networks of multiple wallet addresses to increase their chances of receiving the largest airdrops possible. While projects may not welcome such strategies, this practice does exist in the crypto community.
What Types of Airdrops Are There on TON and Beyond?
The most common type of airdrop is a standard distribution of assets to users for performing specific actions, such as:
- Becoming a project user
- Holding certain assets
- Inviting new members
- Engaging in social media activity or content generation
Projects may or may not disclose the airdrop amount beforehand, depending on their strategy.
In the TON ecosystem there is an initiative called The Open League, which involves the seasonal launch of different airdrops proposed by various projects within the ecosystem. For example, the TON Crystal airdrop in early 2023 distributed over $2,000,000 worth of tokens to 50,000 participants.
Airdrops can also take other forms, such as:
- NFT airdrops. Projects distribute non-fungible tokens (NFTs) instead of fungible tokens.
- Governance token airdrops. Projects distribute tokens that grant voting power and a say in the project’s decision-making.
- Retroactive airdrops. Projects reward past users of their protocol, incentivizing early adoption. For example, STON.fi in autumn 2023 never promised that, but sent additional NFTs to the participants of its initiatives — the Bounty program and the Treasure Hunt. STON.fi gave their active users approximately $1,500,000 worth of tokens and NFTs.
How to Find and Choose Airdrops
Finding Airdrops
There are several ways to discover ongoing and upcoming airdrops:
- Social Media Search. Look for airdrop-related tags (e.g., “airdrop,” “TON airdrop”) on social media platforms like X (Twitter).
- Telegram Channels. Follow Telegram channels dedicated to tracking and sharing information about crypto airdrops.
- Airdrop Platforms. Use specialized platforms like Zealy or Galxe to find and monitor available airdrops.
- TON Community Bot: In the TON ecosystem, the official @community_bot is an excellent source for the newest and hottest airdrops.
- Initiatives like The Open League that provide a consistent stream of airdrop options for users to explore.
Choosing Airdrops
There are two basic strategies for choosing which airdrops to participate in:
- Strategy 1: Stick to Notable Projects. Focus on airdrops from well-established projects with substantial investments. This is a more secure strategy, but it may lack efficiency due to the high competition among “drophunters.”
- Strategy 2: Explore Less Popular Projects. Search for less popular projects that still offer clear and fair airdrop conditions. For example, the STON.fi airdrop in spring 2023 distributed staked STON tokens to STON.fi NFT holders, with rewards of up to 1,400 STON depending on the NFT holdings.
❗ Important! While airdrops are often presented as free distributions, there may be associated costs involved. Transaction fees, network commissions, and other charges may apply when claiming or managing airdropped tokens. Always do the math and factor in all relevant fees before committing to an airdrop opportunity.
Beware of Scam Schemes in Airdrops
The promise of free tokens makes airdrops an attractive vector for malicious actors. Scammers exploit the FOMO (Fear of Missing Out) psychology and users’ desire for quick profits. The complexity of smart contracts and the irreversible nature of blockchain transactions create perfect conditions for sophisticated fraud schemes.
👀 Here are some examples of airdrop scams:
- The False Friend Attack (2023). Scammers copied legitimate DeFi protocol interfaces and announced fake governance token airdrops. Users connecting their wallets to claim tokens had their assets stolen, resulting in $8 million in losses.
- The Dusting Scam (2024). Malicious actors distributed small amounts of worthless tokens to thousands of wallets. When users tried to sell these tokens on DEXs, the smart contracts executed functions that drained their wallets, targeting users on multiple chains.
- Honeypot Scams. In this scheme, a coin can be freely purchased, but selling it will only work from certain addresses (the scammers’ wallets). Attempting to sell the coin results in the transaction being canceled for the user, and the scammers then sell the assets and disappear with the earned funds. For example, a project called “TON Wealth” claimed to offer high-yield staking but ultimately resulted in users losing their invested funds.
How to Protect Yourself from Fraudulent Airdrop Schemes
To stay safe from airdrop scams, follow these best practices:
- DYOR (Do Your Own Research). Always research the project, its development team, and the available materials thoroughly before participating in an airdrop.
- Analyze the Metrics. Pay attention to liquidity volumes, price impact indicators, and other relevant metrics to identify potential red flags.
- Scrutinize Price Charts. Look at the asset’s price charts and understand what factors contributed to its popularity.
- Beware of Artificial Hype. Don’t believe overly hyped claims or promotions that seem too good to be true.
By following these security measures and staying informed about potential risks, you can participate in crypto airdrops while protecting your digital assets.
Wrapping Up
Crypto airdrops is a unique token distribution method that benefits both projects and users, but they require careful consideration and security awareness. Success in the airdrop space depends on maintaining a balance between opportunity and caution. By following best practices and staying vigilant about potential scams, you can navigate the airdrop landscape and potentially reap the rewards of this innovative distribution model.
