Crypto. AIRDROP

What is Airdrop?

Airdrop in crypto is a project that distributes coins/tokens (usually free) to users... This is considered an effective marketing strategy to promote the project, helping to increase recognition. community exposure and attention to their coin/token.
Airdrop in crypto is a form of distributing free coins/tokens to users

Why is the project airdropped?

In the crypto market, community is an important factor for the development of a project. Therefore, they will often announce airdrops to early users to show their gratitude to the community.
Accordingly, airdrop projects aim to:

• Project promotion: After the airdrop announcement, users will begin to learn about the project, participate in using the platform, and share information with others. This helps create attention and promote the project effectively.
• Create community and interaction: Users participating in the airdrop often have to perform some tasks or use the project's products. This helps create an active user community for the project, while increasing interaction between the two sides.
• Increase dispersion: Through airdrop, projects can widely distribute their coins/tokens to many people, increase dispersion and limit concentration on any one organization, individual or investor. . 

Even though the cost of airdrops can reach tens or hundreds of millions of dollars, many projects still perform airdrops because of its effectiveness. 
An example is Uniswap, which is one of the pioneering projects in airdrops for early users. 
On September 1, 2019, Uniswap announced the UNI token airdrop for users who have used and interacted with the Unisocks protocol before. At that time, the total airdrop value reached 2,592,000,000 USD with 252,803 recipients.
To date, Uniswap remains one of the leading DEX projects in the crypto market. 
Uniswap airdrop 400 UNI to early adopter wallets

Benefits & risks of airdrop hunting in crypto

Benefit

Airdrop hunting can bring several benefits to crypto users such as:

• Opportunity to receive free coins/tokens:Users can be given free tokens, thereby making profits and diversifying their investment portfolio without having to spend a lot of money.
• Opportunity to improve crypto knowledge: Research is an important step when making an airdrop, giving users the opportunity to learn more about projects in different areas, with many unique use cases and technologies. 
• Opportunities to connect with the community: Some airdrops require joining the community and interacting with other members. This is an opportunity for users to connect, share knowledge and create relationships in the crypto market. 
• Potential profits: Some tokens are airdropped from quality projects and have the potential to increase in price over time, bringing significant profits to airdrop hunters. 
• Enjoy the many benefits that tokens bring:Airdropped tokens can have many applications such as providing service usage rights, discounts, participating in governance... to optimize user experience.

Risk

Although airdrop coins are considered a form of free money, it still has some risks and inadequacies related to:

• Time: Some airdrops require experience and testing of products and features, which consumes a large amount of time and effort from users. 
• Transparency: Airdrop tokens are distributed for free and there are no tools to check project activity, leading to a lack of transparency in airdrop results and token distribution.
• Fraud ( scam ): Fraudsters can impersonate projects or create virtual projects, send fake airdrop information, request wallet information (private key/passphrase)... to steal personal information and user assets.

Types of airdrops in crypto

Airdrop can be done in many forms and with many different criteria, including:
Airdrop is carried out in many different forms

Register an account to receive airdrop

This is the most basic and simplest form, users only need to register an account on the platform to receive the airdrop, without needing to perform any other tasks or requirements. 
However, because anyone can participate, the airdropped tokens will be distributed on a first-come, first-served basis. The value of the airdrop is usually not high compared to other forms.
For example: On March 30, 2023, the decentralized exchange RabbitX announced a reward for those who approach and support the project early. Users who have previously registered to create an account on the platform will also be rewarded with a certain amount of RBX tokens.

Bounty Airdrop (Bounty)

Airdrop Bounty is a form of airdrop to users in the form of bonuses. Accordingly, the project will organize programs such as finding bugs, participating in art contests, creating content related to the project... 
Participants need to meet the qualifications and do the tasks required by the project to receive rewards (can be tokens or stablecoins such as USDT, USDC...).
For example: In December 2022, Coin98 also organized the Coin98 Bug Bounty contest with a reward of up to 10,000 USDC, to encourage white hat hackers to participate and find security holes in the system. 
Coin98 organizes a Bug Bounty program with prizes up to 10,000 USDC. Source: Coin98 Wallet

Retroactive airdrop

Retroactive is a form of airdrop project for users who have supported, used or contributed ideas to the development of the product in the past. This form of airdrop is often rewarded to users in the form of the project's own tokens.
In addition, some popular retroactive trends include:

• Run nodes for blockchain projects. 
• Do tasks of dApps such as answering questions, participating in trading contests, filling out forms... 

The purpose of retroactive is that the token will be distributed to the right users. Since these tokens mostly have governance purposes, airdropping tokens to real users will also help increase the ability to hold and continue to contribute to building the project in the future. 
For example:

• Uniswap airdrop to users as stated previously. 
• Ethereum Name Service gives away ENS tokens to users who have used and registered their .ens domain names, with a total airdrop value of more than 20,000 USD. 

Airdrop for people holding or staking coins/tokens 

For this form of airdrop, the project will take a snapshot and record the user's wallet balance over a predetermined period of time. Wallets that hold or have staked a certain amount of tokens will receive an airdrop from the project.
This token can be: 

• Tokens of the Layer 1 blockchain networkthat the project builds on or have a large user base, for example Stellar distributes 19% of the initial supply of XLM tokens to airdrop to wallets holding BTC.
• Project NFTs , for example, Yuga Labs airdrops 10,000 APE tokens to wallets holding BAYC and MAYC NFTs.

APE airdrop information for users holding BAYC and MAYC NFT. Source: ApeCoin

Hard Fork airdrop

Hard Fork is the term for when one blockchain splits into two separate blockchains. After the hard fork, the project will airdrop an amount of new version tokens with a value equivalent to the old tokens held by the user. 
Some typical hard fork events include:

• Bitcoin hard fork : The Bitcoin blockchain split, creating Bitcoin Cash (BCH) and Bitcoin Gold (BTG).
• Ethereum Shapella hard fork: The Ethereum blockchain experienced a hard fork event when switching from Proof-of-Work to Proof-of-Stake consensus mechanism, called “ Ethereum Merge " with the token “ETHW”.

How to hunt for airdrops? 

So how to hunt for airdrops? Normally, the steps to hunt for airdrops will include:

• Research and search for projects that are likely to airdrop.
• Prepare knowledge and tools to support airdrops, including X accounts (old Twitter), Discord, Telegram, electronic wallets, coins/tokens on the network required by the project (if any), how to use the DeFi platform...
• Interact with platforms, products, or perform project-based tasks. 
• Follow the information and wait for the airdrop results .

4 main steps to effectively hunt airdrops

Research & search 

Searching for information about airdrop projects can be divided into two types based on two criteria: 

• The project confirms that it will perform the airdrop: This is when the project officially announces the airdrop to valid users with a certain (or several) conditions in a future period of time. In return, because anyone can easily find and participate, the airdrop value will be low.
• Projects that have not yet confirmed information about the airdrop: This is when users rely on their experience and research ability to find a project (that has not yet launched tokens) that they think will perform the airdrop. Hunting for airdrops in this form requires high difficulty to find projects, but the profits brought to users will also be higher.

However, both types require users to do thorough research ( DYOR ) to find projects that will (or have the ability to) airdrop. Here are some steps to help discover potential airdrop opportunities:

• Follow sites specializing in updating airdrop information such as Airdrop Alert, Airdrop Bob, Airdrops.io, DeFi Llama's Airdrops page, CoinMarketCap...
• Join the airdrop hunting community on social networking platforms such as Telegram, Twitter, Discord. 
• Join cryptocurrency forums like Bitcointalk, Reddit... because they have dedicated sections for users to discuss airdrops. 
• Follow KOLs (influencers) in crypto such as founders, project advisors, famous airdrop hunters... because they often share information about airdrops and provide valuable knowledge and insight. project value.

Equipped with knowledge and tools

Depending on the project's requirements, users will prepare corresponding tools. However, in most cases, users need to prepare in advance:

• Cryptocurrency wallet: Used to connect and interact with the platform. This is also the place for the project to check, record activities and send rewards to users if they win the airdrop. Some popular wallets often used to make airdrops are Coin98 Wallet, MetaMask, Braavos...
• Network coin: Used to make gas fees when using the platform, it can be the coin of the mainnet network (like BNB, ETH, SOL...) or testnet network like ETH on Kovan, Rinkeby... 
• Knowledge about the project and how to use the platform: Users need to have a basic understanding of what the project operates in (DEX, lending, staking, name service...), how to use and interact with the product …
• Follow the project's information channels:To be updated with information and receive support to answer questions and solve problems if you encounter problems when making an airdrop.

Users need to prepare cryptocurrency wallets, network coins and knowledge to make airdrops

Use the platform, perform tasks

The next step is to register and start using the features on the platform or completing the required tasks. 
Each airdrop has its own mission and set of rules, so read the instructions carefully and follow the guidelines to ensure: 

• Provide complete registration information, be it email account, Discors, X...
• Meet all criteria and conditions to participate.
• Complete the task correctly. 

For example, Aptos launched the Aptos Incentivized Testnet (AIT) program with 4 parts to encourage users to participate in testing the project's testnet. The tasks that users need to do are:

• Register to participate using your Discord account and email.
• Mint APTOS:ZERO testnet NFT.
• Stake tokens and run node on-chain. 
• Participate in voting on governance proposals.
• Find and detect errors in the network system.

Follow the information and wait for the results

If the project has been confirmed to airdrop in advance, users just need to participate and wait until the result announcement date to see if they win the airdrop or not. If so, users need to clearly understand information about when and how to claim the airdrop according to the project's instructions.
In the remaining cases, users need to wait until there is an official airdrop announcement from the project, or at the latest when the token is launched. If after that there is still no airdrop notification, your efforts in making the airdrop will be considered "in vain".

Some notes when hunting for airdrop coins

Below are some tips users should keep in mind to increase efficiency and limit risks when hunting for airdrops:  

• Use a secondary wallet and do not store many assets: Airdrop wallets should not have many assets to minimize the risk of losing money if the platform is hacked. Users should create their own wallet for the purpose of making airdrops and only store a small amount of tokens for gas fees. 
• Never share or disclose private key: This is considered the "golden rule" in the crypto market. Therefore, if any airdrop project requires users to provide private key information, it is certain. is a scam.
• Create an email address specifically for airdrops: To limit spam mail and minimize the risk of worst-case mail hacking.
• Choose an airdrop that suits your financial ability: Retroactive and bounty airdrops will be suitable for those with little capital and a lot of time. On the contrary, holding and staking tokens will be suitable for people with high capital and little time. 
• Do not use the same password for multiple websites: For airdrops that require website registration, users should use strong, difficult to guess, and different passwords. 
• Always be careful and check the link: As mentioned above, there are many fake channels or accounts on social networking sites like X, Telegram. They often use names similar to the project and only need to change minor details such as adding dots, domain extensions... to trick users. Therefore, you need to pay attention to check carefully before clicking on the airdrop link.
• Always update the latest information from official channels: This helps ensure that users have access to accurate and reliable news sources, avoid the risk of fraud and fully perform the required tasks.