What are Crypto Airdrops? Why FREE Crypto is Given & How to find them
https://www.youtube.com/watch?v=jPdNOC1B5g8
Transcript:
Have you ever got a free sample of a product before? Like for example, you may be walking in a mall, and then, you see a banner for a company announcing that they are giving away free samples of a skincare product. They are giving you this free sample to make you try their product without having to pay anything, in hopes that you like their product and buy it in the future or, maybe, you like it very much, so you tell your friends about it.
This idea of free samples is very similar to crypto airdrops. Welcome to Crypto Bee where we explain cryptocurrencies and DeFi topics in the most simple and beginner-friendly way. In this video, you will know what are airdrops and why they are given, how can you find airdrops, and finally, some things you should never do while searching for airdrops. So, let’s dive in.
So, what are crypto airdrops? Simply, an airdrop is free coins sent to some users. These coins are sent by the development team behind a token or an application. You may be wondering, why are they sending tokens to users for free? Like how will they benefit from this? Well, there are many reasons for giving out airdrops. But here are the most common ones.
The first reason and the most obvious one is marketing. That is when they send you tokens without you doing anything at all. And also, you probably don’t know anything about the token you receive. So they are hoping that when you see the token in your wallet, you google it and try to learn more about it.
And then, eventually, buy more of it or tell your friends about it. So here, the team basically wants a lot of people to know about their token or project in hopes of building a community around it and an airdrop is an easy way for them to achieve that sometimes they may announce the airdrop and ask you to do some things to claim it you may be asked to tweet about it tag your friends or give the development team your email address all of this is done to get people to know about their project and create hype. Another reason for airdrops is to reward early users of an application or an exchange.
In these airdrops, the team will basically make a list of the users who first use their application or exchange, and then they airdrop these users some free tokens as a way of rewarding them. This type of airdrops is called retroactive airdrops and most of the time the token sent to users is a governance token which simply means a token that gives its holder the right to suggest and vote on changes to the application or the exchange so it makes sense for the team to choose the early users as they want people with genuine interest in the project that
is exactly what happened with uniswap, Oneinch, and DYDX. The three airdrops were retroactive airdrops that rewarded early users with governance tokens. Another reason we have for airdrops is to create value for an NFT project. Sometimes, the team behind an NFT collection will create another new collection after a while.
And if you have an NFT from their first collection, you can claim a new NFT from their new collection for free. This happened with the Bored Apes Yacht Club collection, where the holders were able to claim new NFTs from the Kennel Club collection for free. After that, the holders of the original Bored Apes were also able to claim serums, which can be used to create new Mutant Apes, which are also NFTs that were selling for a lot at that time. Those are not the only airdrops they received, the holders were also able to claim
free ape coins, which is a token created by the same team behind the Bored Ape Yacht Club collection. So, airdrops for NFT holders can be in the form of new free NFTs or free tokens, and these airdrops are done to make an NFT project valuable for investors. The fourth reason for airdrops is the pump and dump schemes.
Sometimes, the developers will create a new token, then airdrop it to many people for free to create hype and to get other people to buy it. And once the price rises, they sell all the tokens they have, crushing the price to zero, and then disappear with the profits they made leaving the investors with nothing so it is very important to do your own research before investing in any token especially new tokens with small market cap now you know what are airdrops and why they are given so how can you actually find these airdrops well first off like what we said
sometimes you don’t need to do anything to get an airdrop, you just need an active Ethereum wallet, with some Ethereum in it. Just try to make sure that you are actively using the wallet to increase your chances, as sometimes, they avoid choosing empty and active wallets, as they seem as if a bot created them with no human user.
If you currently have an Ethereum wallet with some tokens in it, there is a chance that you may have received airdrops before and didn’t know about them. So, go to either scan and search for your wallet address and look for any tokens you don’t remember buying before. If you didn’t find airdrops in your wallet, you can use a website like airdrops.
io which has a list of the active and upcoming airdrops, their dates, and what you need to do to be eligible. Another way you can search is by looking for popular or useful apps or protocols, but still with no token. So use them and you will probably be on their list when they decide to create a new token.
Also, try to always keep an eye on the official social profiles on Twitter and Telegram, as sometimes they drop hints about their upcoming airdrops. Before we end the video, let’s talk about some things you should never do while trying to claim an airdrop. First of all, don’t visit links sent to you by email asking you to claim an airdrop.
When you click on these links, you will be redirected to shady sites, and they will ask you to connect your wallet and approve a transaction to claim an airdrop. So, never do these things, never connect your wallet to unknown websites, and never approve any transactions there.
As they will drain all the tokens in your wallet. Sometimes, you will also find tweets with links to these shady websites from fake twitter accounts. So be very careful about the sites you connect your wallet to, and make sure you are viewing the official social media accounts. Another thing you should never do is giving your private key or recovery phrase to anyone.
You don’t need to enter your private key or your recovery phrase to receive an airdrop, they just need your public wallet address. So never give your private key or recovery phrase to anyone. Finally, don’t ever send coins to anyone in hopes of getting them back 2x or more.
Any airdrop asking you to send coins is 100% a scam. So, stay away from them.
