A cryptocurrency airdrop is a process in which cryptocurrency (including NFTs) is distributed among users in exchange for completing simple tasks.
Contents:
- Why Projects Give Away Tokens
- Tips for Efficiently Finding Profitable Airdrops
- Key Tips to Avoid Losing Money on Airdrops
- How to Find Where Profitable Airdrops Are Happening
- Best Websites for Tracking Airdrops
Why Projects Distribute Tokens
Projects typically use token distribution (airdrops) as part of their marketing campaigns to attract the attention of investors and users, as well as to increase the loyalty of community members. Airdrop participants perform specific tasks, which helps the project test new features and boosts its popularity. In return, participants receive tokens or other bonuses.
Knowing how to find token airdrops can lead to decent profits. For example, the second-layer project Arbitrum offered token airdrops worth over $1000 for simple actions on the network prior to its main release. Participants had to use bridges and swaps, participate in staking, and complete similar tasks. Essentially, airdrop participants acted as testers, helping developers identify technical vulnerabilities and errors.
Many token airdrops can be categorized into different types, such as airdrops, retrodrops, stakedrops, etc. However, in this article, we will discuss airdrops in general and explore how to choose a project that can yield good returns.
Tips for Efficiently Finding Profitable Airdrops
To avoid wasting time on ineffective airdrops that won't pay off, it is recommended to follow a few simple rules.
Rule 1: Pay attention to who and how much money is invested in the project.
If major players such as Coinbase or Binance Lab are among the investors, the likelihood of the project closing in two weeks and disappearing without warning is significantly reduced. Large companies usually carefully study potential projects and do not invest in non-promising, outdated, or clearly fraudulent schemes.
Rule 2: Pay attention to the relevance of the problem the project solves.
Good projects aim to solve users' problems or simplify their lives. For example, in the Ethereum network, transactions are often processed slowly and at a high cost. However, Arbitrum has proposed an innovative solution that speeds up the process and reduces costs. This project actively addresses users' pain points and has found an effective solution, allowing it to quickly surpass older networks. For the same reason, LayerZero has successfully raised $120 million in investments from leading investment funds.
Rule 3: Pay attention to the project's valuation.
The estimated value of a project helps determine how much it will be worth in the future. It is based on the internal assessment of the team and investments from early investors. Even for projects that have not yet entered the market, an estimated value can already be found. For example, LayerZero, a crypto startup, is valued at approximately $3 billion, which is a significant amount in the crypto industry.
The estimated value of a crypto startup is directly related to the funds it has raised. This means that a project with a high valuation has more money for marketing and promotion, making it easier to build a community and increase token value.
Rule 4: Study the tokenomics.
Tokenomics is an important element of fundamental analysis for a crypto project. Together with the roadmap, technical documentation, and team composition, it helps assess the potential of the startup. To ensure sustainable development and overcome initial challenges, a blockchain project requires carefully designed tokenomics.
In particular, the project's tokenomics often specify what portion of the total token supply is allocated for community distribution as rewards. This is a good indicator that an airdrop is planned.
Rule 5: Monitor activities within the project.
Activities in an airdrop provide participants with rewards or drops. In good projects, a wide range of tasks is offered as rewards, both in the testnet and the mainnet. For example, participants may be asked to create NFTs, conduct token swaps, use cross-chains and bridges.
Rule 6: Pay attention to the ecosystem.
The more promising and innovative a project is, the more interest it attracts from various services. Even during the testing phase of such projects, an extensive ecosystem begins to form, including bridges, NFT marketplaces, and other services supporting the initiative.
Often, these ecosystem services offer their bonuses and promotions in partnership with the project. For example, recently, ZkSync, a project that has not yet entered the market, distributed its tokens worth $40 to every account that made at least one transaction.
Key Tips to Avoid Losing Money on Airdrops
Let's discuss how to find an airdrop that can bring you additional funds. It is important to consider the risks associated with participating in airdrops.
An airdrop, by definition, is a free distribution of tokens. Initially, participants are not required to invest any funds and carry minimal risks. However, it is necessary to remain vigilant as there is always a chance of encountering scammers who aim to deceive and benefit at your expense.
Around popular projects, there are always active scammers whose goal is to steal your money through phishing websites and fake links or by downloading malware that helps them discover your savings and steal them from your crypto wallets.
To prevent such situations, it is advisable to follow the following recommendations:
- Thoroughly verify information from official sources. It is best to compare data from multiple reliable sources.
- Never click on links from emails or Discord. It is always better to manually enter the official project website address into your browser.
- When using unofficial bridges or swaps for projects, remember to disconnect your wallet from the corresponding website.
- Under no circumstances should you share your passwords and personal information with anyone. This may seem obvious, but it is effective.
How to find profitable airdrops
There are several convenient platforms on the internet where you can find information about most projects that are planning or already conducting airdrop distributions of free tokens. However, to stay up to date with the latest news and updates, you often have to search for information on social media from individual projects or in specialized communities.
Top web resources for tracking airdrops
Service Description CoinMarketCap The largest service for monitoring cryptocurrency prices, market capitalization, and other important data. They have launched an Airdrop service where the team selects airdrops. AirdropAlert A popular resource specializing in airdrops. They publish selected airdrops that, in the team's opinion, have the potential for success. They offer a subscription for notifications about current distributions. Airdrops.io A service offering a large number of distributions categorized as "hot" airdrops, holder airdrops, and upcoming airdrops. DappRadar A popular service for monitoring DeFi projects. They conduct airdrops from partner projects. Registration and wallet connection are required to participate. Coindar An events calendar with advanced functionality. It allows you to track events of specific projects and the native token's reaction to the announcement of an upcoming airdrop. Alphainsiders A Twitter account where current news about promising projects is published.
Each of the mentioned services has its own features and offers various opportunities for tracking and participating in airdrops. The choice of service depends on your preferences and goals regarding airdrop participation and project news tracking.
