The definition of Airdrop in the crypto industry
An airdrop is an industry-specific marketing campaign that focuses on giving away various platform-native resources to early adopters. Usually, new blockchain startups invite new users by offering them free tokens, digital assets, and discounts.
The term has a very straightforward etymology, although it is still debated. Some people say that initially people just wanted to ride the hype of online battleroyales where players receive new weapons and other loot by airdrops delivered by planes. Others suggest that airdrop is a direct reference to the supply method used by the military.
Regardless of which legend is the right one, you need to be ready for crypto airdrops meaning that you must understand them and know how to track the most important airdrops that are scheduled for the nearest future.
Understanding Airdrops in cryptocurrencies
The contemporary crypto industry is quite complicated and features hundreds of different companies. Some of them are behemoths like MakerDAO or Uniswap while others struggle to get any media attention. To top it all off, many media outlets still prefer to ignore the crypto industry despite its growing size and influence in the world of finance.
An airdrop is the simplest form of marketing that allows startups to quickly gain attention from their target audiences.
The importance of Airdrops in the cryptocurrency space
Marketing opportunities for blockchain startups and DeFi platform are quite limited and usually can be boiled down to just several options:
- Social media campaigning. Using Facebook, Instagram, Telegram, Reddit, and other social media platforms to promote products can work, but it requires dedication, money, and some luck to go viral.
- Paid promotions in search engines. It is one of the most efficient ways to attract new customers, but they must be aware of the industry in general to search for something relevant.
- Focusing on SEO and links. To achieve results companies have to conduct large campaigns and negotiate about linking with popular websites generating traffic.
- Using various marketing stunts to attract attention. Airdrops and regular promotions are the best ways to ensure that more people start using your platform.
Traditional media marketing campaigns do not work as well as these four tactics. Additionally, print and TV cost a lot of money which is something that startups lack in the beginning of their development process.
Significance and popularity of Airdrops
One of the biggest advantages of using airdrops is that they produce hype and make sure that projects have a significant user base right from the get go. It is hard to attract new users and make a platform viable without using traditional marketing tools, but startups found a way to do so by using giveaways.
There are several important factors making this particular marketing strategy a good idea for any blockchain startup:
- Saving funds. Marketing campaigns can be costly and affect the bottom line. By giving away tokens issued by the platform instead of actual money, the company effectively increases its user base without spending funds that can be used for development purposes.
- Going viral. Airdrops generate hype. You can also employ social media influencers to raise awareness and ensure that more people tune in for updates about the upcoming airdrop.
- Testing the platform. The influx of new users immediately increases activity in the ecosystem of the platform allowing developers to start gathering valuable information to continue improving and rolling out new features.
Crypto airdrops in 2023
The crypto industry is still going strong despite some notable drawbacks in 2022. The current landscape of the domain is full of interesting projects that may focus on giving away funds to attract more users. Some of more interesting projects are already in the beta phase. Some are working their way to releasing an MVP (minimal viable product) by the end of the year.
The current state of airdrops in 2023
How do crypto airdrops work? Usually, a new startup focuses on quickly gaining new users by giving away their tokens. In many cases, you must be an existing user of the Layer-1 network to receive an airdrop.
For example, zkSync may be interested in airdropping their tokens to users of various zkSync features. The platform is deployed on the Ethereum network and you need a crypto wallet compatible with ETH and ERC-20 tokens to receive airdrops. MetaMask works excellently just like many other multifunctional Ethereum wallets.
Examples of prominent Airdrops in 2023
Let’s talk about how to receive an airdrop in crypto coins. Don’t expect an airdrop from an already established platform or layer-1 networks. You will never see a company giving away Bitcoin or Ethereum. However, you can expect to get some platform-native tokens from the development team.
This year may bring many opportunities to an attentive investor. Be on lookout for the following projects:
- Sui is a great new project that focuses on improving the throughput of blockchain networks and operates using the proof-of-stake consensus protocol. The testnet program aims to provide additional information for research while allowing users to experiment with the Sui networks. You may expect a generous airdrop by the end of the year.
- MetaMask is a crypto wallet that works well for Ethereum and ERC-20 tokens. The development team behind the wallet is rumored to be developing a new coin that will facilitate faster swapping of assets, quicker transactions, and provide discounts to users. When the $MASK token will hit the market, it is possible that the dev team will make an airdrop to raise awareness.
- Fuel is one of the most interesting experimental projects that focus strictly on scalability of layer-2 networks within the Ethereum ecosystem. The development team hopes to also affect the layer-1 network and provide better functionality for roll-ups and sidechain deployment. The testnet is working right now and allows users to explore the new functionality. Being a part of this growing ecosystem may lead to receiving a platform-specific airdrop.
Airdrops in the NFT space
One of the biggest proponents of the airdrop strategy is the NFT industry. It has shrunk significantly over the last year. Nevertheless, there is undeniable utility in non-fungible tokens. While the industry is still trying to find a good place for these digital assets, many NFT projects continue their journey and try to attract new users with airdrops.
What are NFT airdrops? When a new NFT collection or a game that features NFT elements launches, people behind it usually try to attract players and collectors by giving away some of the unique tokens. For collectors, it is hugely important to keep track of upcoming NFT releases since almost all of them use airdrops to market themselves.
NFTs and their uniqueness
What is an airdrop in crypto? It is a method of attracting people with a hefty sum of tokens. However, the NFT space is different. Usually, users participating in the airdrop receive unique tokens that cannot be changed.
The very core of a non-fungible token is in its immutability. Many critics of the concept are right in that the NFT is just a line of code that is unique and cannot be altered ensuring that people who are assigned with an NFT can enjoy full ownership of said line of code. Everything attached to it is a completely different thing.
While images, video clips, digital art, websites, and other artifacts attached to an NFT can be stolen or copied, the ownership of the original source image attached to an identifiable listing on a blockchain network belongs to its owner.
Airdrops as a marketing strategy for NFT projects
You can expect that any NFT project that wants to be relevant will try to attract as many users as possible in the very beginning of is existence. Market research indicates that over 92% of all NFT projects drop off quickly right after the initial release. Many NFT games are still struggling to retain their audience and demonstrate long-term sustainability of their economies.
It means that every NFT project wants to get big right from the get go by attracting thousands of collectors and players. You should be tracking these NFT platforms and try to get into as many giveaways as possible.
How to get airdrops in crypto
The easiest way to receive aridrops is by participating in networks during their early stages. You can look for up and coming DeFi platforms and testnets on Discord and Reddit. Start using these startups and their products to provide valuable feedback and receive rewards from the development team.
Airdrop wallets and platforms
Since most of the airdrop action happens on the Ethereum network, you definitely need a wallet that can work with ERC-20 tokens.
- MetaMask is the most popular crypto wallet in the world used by a large number of crypto investors and retail traders working with a variety of DeFi platforms.
- MEW (My Ether Wallet) is another good choice for ERC-20 tokens. It is less convenient to use than MetaMask, but offers better security and customization options.
- Free Wallet for EOS, one of the biggest layer-1 networks with over 260 DeFi, NFT, and gaming projects cooking in the over right now.
Setting up a crypto wallet
How do airdrops work in crypto? You need to have a wallet that works with the network that you want to use. We will guide you through the MetaMask installment process since Ethereum is the most popular blockchain network for startups and DeFi developers.
1. Go to the appstore for your browser (for example, Chrome Web Store) and look for MetaMask.
2. Click install the app or “add an extension” in the store.
3. Wait for the icon to appear on the task bar of the browser.
4. Open the extension and create a new wallet. Follow the instructions.
5. You will be able to find your crypto wallet address in the extension.
You can also get the MetaMask app for an Android or iOS device. Simply go to the AppStore or Google Play Store to find the application and install it onto your device. You can check the wallet address in the profile.
Airdrop platforms to use in 2023
It is a good idea to start using some of the most promising platforms out there and wait for potential airdrops that may happen somewhere closer to the end of the year.
- zkSync ERA is one of the most promising DeFi platforms operating on the layer-2 of Ethereum. It can significantly improve transaction speeds and open doors for scalability to many other blockchain projects. We expect this platform to start inviting users during this year.
- Neptune Mutual is a special service that aims at improving the level of safety for all Ethereum users. Neptune looks like a promising startup with many features demanded by active cryptocurrency investors. Connect your wallet to the Neptune Mutual network and start using their products. It is possible that the airdrop will happen in the end of the year.
- OpenSea is the largest NFT trading platform in the industry. It does not have a platform-specific token, but community rewards are issued in different forms. Start trading on the OpenSea marketplace to be ready for a potential airdrop in the end of 2023 or early in the next year.
- LayerZero is a project that focuses on improving interoperability in the crypto industry. It is a very promising startup that can completely change the way we interact with blockchain products in the nearest future. The $ZRO token is already announced, but we did not hear anything about any potential airdrops. However, we still strongly recommend people to start using the LayerZero platform and wait for rewards.
How to use tokens that you receive?
One of the best ways is to continue using them to extract value from the platform itself. You may try selling them for profit, but it requires you to work with a network that has a token that has a competitive edge in the open market.
Some tokens can be used on centralized exchanges right away. Consider using automated trading software and other forms of trading products to use these newly acquired assets to trade on CEX and DEX platforms.
We strongly recommend all recipients of free tokens to hold on to them for at least some time. While selling them can look like an attractive idea, the token may increase in value in the nearest future when more people start using it.
Airdrops are still some of the most effective marketing tools in the arsenal of the crypto industry. With thousands of people lining up to receive free goods from highly anticipated platforms, the desire of new startups to attract customers by giving away tokens is quite understandable. The only thing you need to do to have a chance of receiving a free gift is to use platforms that are expected to do an airdrop!