What is Airdrop Coin? Instructions for making Airdrop “easy to eat” & effective (2022)
What is Airdrop Coin? How many forms of Airdrop are there? Learn about limitations and effective airdrop guidelines here!
Entering Crypto, there are probably very few people “Im here for tech”, but most of them want to make money.
Profits in this market can come in many ways, from easy to difficult, from ecosystem to ecosystem.
Today’s article will not do a horizontal analysis, but rather dive into a method that everyone loves, but not everyone is willing to do – Airdrop Coin.
What is Airdrop Coin?
Airdrop Coin is a form of giving free profits to users, specifically the profit here is coin or token.
But how many forms of Airdrop are there? And although Airdrop is almost free, there are still many cases where users “like” but do not dare to “move”?
The sections below will help you answer all of the above questions.
Compare Airdrop with Bounty
A lot of people confuse Airdrop with Bounty. Actually, there is not a clear line when placing Airdrop and Bounty on the scale.
But a rough understanding:
- Bounty is we do something to make money.
- Airdrop is an amount of money that suddenly “falls” into the pocket.
Specifically, Bounty literally means “hunting for bounties”, when we need to do what the project requires, in return the project will give some money (or tokens) for your efforts.
These are usually: Find bugs; participate in painting contests, create content;…
As for the Airdrop, it’s that we experience the project with a “good luck” mentality that the project will have a plan to reward users who join the project soon.
So it is almost impossible for us to know if the project is really Airdrop or not.
Popular Airdrop Coin Forms
Based on what I gathered, Crypto currently has the following ways to receive Airdrops:
Retroactive is a form of project that airdrops coins for users who have supported, used or contributed ideas for the development of a product in the past, this airdrop is usually rewarded to users in the form of tokens of the project itself.
This form was only popular when Uniswap started Airdrop UNI – Uniswap’s token for users who used to interact with the project.
At that time, UNI had just been distributed to user wallets and was listed on Binance for about $3-4, so one wallet would get ~$1,600.
Then comes 1Inch with two airdrops of coins for users who also participate in the transaction, or provide liquidity for the project.
Both times give a token amount of about 600 1INCH with a value of ~$1,700 for the 1st time and ~$2,400 for the 2nd time.
The purpose of this way is that the token will be distributed to the right users, because these tokens mostly have administrative purposes, so if they are real users, they will most likely keep and contribute to the construction. build project.
Read more: The secret to changing positions with 0 dong capital by doing Retroactive
Hold & Stake coin
The master token here I am talking about can be the Native token of the Blockchain, or the tokens in the background layer that the Airdop projects build above.
With this way, users do not need to do any activities, just owning valid tokens, they will be Airdropped.
Some cases include:
- LUNA: Brothers holding LUNA and Stake, will receive Airdrops from new projects built on Terra ecosystem. Up to now, the number of Airdrop projects confirmed to give tokens to LUNA holders has reached 14. And of course, this number has not stopped.
- CRV: More precisely veCRV – token generated from locking CRV (read more about how Curve works here). Users with veCRV will receive EPS, Ellipsi tokens, Curve fork, and Curve support.
- SNX: Projects built on Synthetix will be Airdropped to Stake SNX users in the future. Starting with 3 projects: Lyra, Thales and Aelin.
It can be clearly seen, in the past, we have had cases of Airdrop for token holders such as BTC, TRX,…
But recently, this trend has been replayed, but in a higher version, it is Stake. Just received the Airdrop.
This will help reduce the owner token circulating outside, leading to more positive price fluctuations, or if it is a Native token of Blockchain, it will help increase security.
Read more: What is Staking? Staking guide for beginners A – Z
Do the quests
In addition to the above methods, you can also participate in the following ways to receive coins / tokens from projects:
- Answer the question: Featured in this area is Coinmarketcap, Idolmeta.net has articles in the Series Make Money with CoinMarketCap, detailed instructions on how to join, and always provide answers for you.
- Participate in contests: Participating in contests such as top trading volume on exchanges will also receive Airdrops.
- Fill in the form: This method is applied by many projects and many people participate because it is very simple, just fill in the form and wait for the results, like Solstarter‘s SOS airdrop.
Disadvantages of Airdrop Coin
Although Airdrop Coin is one of the ways to make money that is almost “sure win”, that is, you do not lose money, but it is undeniable that there are still certain shortcomings related to:
- Time: Undeniably, Airdrop forms that require users to experience the product mostly force users to spend a certain amount of time trying out all the features. For those of you who are busy, or not really interested in Skin in the game, these things are really bad.
- Transparency: Because the tokens are distributed for free, and there is almost no way to check the team’s activities, it is almost possible that the project does not really distribute according to the original regulations. happen. Note, this is just a hypothesis coming from the author – someone who has never won any Whitelist.
- No great value: Some confirmation projects will always have an Airdrop coin/token for specific activities, so there will be a large number of users involved, not to mention each person will use many wallets. This results in the number of tokens of each wallet being split, from which the amount of money collected for users playing few wallets will be very low.
- Scam: Since this is one of the most popular ways to earn money, it is inevitable that “lost money is wrong”. For example, if a user clicks on a scam link, asks for a Private Key/Passphrase, etc., you MUST pay close attention to the links you are about to click next.
Of course, this is not all, can you think of any limitations? You can comment below the article for everyone to discuss.
Learn: List 19 types of crypto scams & how to avoid them
Instructions to make Airdrop Coin effectively
Depending on what the “topic” is, we need to prepare accordingly.
But most of you must have a Multi-chain wallet, which means that any chain must have a wallet, along with a few coins of that Blockchain as a transaction fee.
If it’s in Testnet form, then you also need coins of the Testnet network, like ETH in Kovan, Rinkeby, etc.
Also basic knowledge of how to use DeFi products.
Look for information
If you have read the above content, you will also see that the information will be in two forms: Confirmed and unconfirmed.
- Confirmed means the project has an announcement of an Airdrop to certain eligible users, and gives an additional period of time to complete the condition. But the return is often low value because everyone does.
- Unconfirmed means based on your experience, find projects that do not have tokens, participate in the experience and hope that there will be an Airdrop. This form will be highly profitable, because few people do it. But in return it is difficult to find these projects.
This step requires you to use the last “preparation” above: Knowledge.
You need to know basically what a project works on will have, for example, Lending will have borrowing and borrowing, DEX will have Swap and provide liquidity.
Once you know for sure, just do what is provided by the project. In some cases, the project will have an article to guide users on how to experience it.
Waiting for results
Similar to the Information collection section, if there is previous information, we will wait until the date of announcement of the results to know if we have won or not.
In the other case, you have to wait until the official announcement, or at least start announcing the token launch.
If we still don’t see any notification after the token launch, we have found the wrong project.
Tips to make Airdrop Coin “easy to eat”
Here I will divide into two types based on capital. Of course, there are no conditions to be classified into more or less capital, it’s all up to you to decide for yourself.
Make Airdrop with little capital
If you consider yourself in this form, then you must put in a lot of time and effort to use the products.
A lot of projects have pretty easy ways to interact, like swap-only AMMs, or provide liquidity.
But the more difficult projects – Lending protocol for example, you require more buttons to press, as well as need to have a testnet amount depending on the network.
That’s not to say the effort isn’t worth it. Perpetual Protocol once held a “long-short” testnet tournament, users only need to ask for some testnet ETH, draw a chart and enter orders.
The contest has a total of 200 winning slots, with the lowest prize receiving 100 PERP, at current prices, 100 PERP will be equivalent to $1,000.
It was a “wonderful” experience that not everyone knew about. But from there, we will have more experience when participating in mainnet products with real money.
Make Airdrop with a lot of capital
In my opinion, people with a lot of money will definitely lack time, so it’s almost impossible to work on testnets, because it’s likely that they won.
But if you still want to have an Airdrop, I suggest doing it the way Hold and Stake the master token for the following reasons:
- Most of the master coins/tokens are large projects, so they can almost be considered investment assets.
- Because these are big projects, will attract many small projects, Airdrop will be a lot.
- It is not possible to claim these rewards of high value, but assuming there are some outstandingly successful projects, the returns are very good.
As I said, the public airdrop usually has a very small value for each wallet, so in order to earn a “fair” amount, it requires you to buy a large number of tokens, or to buy capital on average, you must be in the right position. so beautiful.
Common mistakes when making Airdrop Coin
Can’t predict the cost
Like I said, Airdrops are not always free. The project experience process sometimes requires you to pay a fee to operate, especially in Ethereum with its extremely high gas fee.
If you do not know your total capital, it is very likely that you will participate in testing many projects, but in return, no project will Airdrop Coin, or the amount received is not worth the effort.
Half-hearted experience means you do too little. For example, AMM projects often not only have Swap, but also provide liquidity.
Therefore, if you only Swap a few symbolic commands, there is a high possibility that you will not receive an Airdrop.
And if you provide liquidity, but you just put in and withdraw, it is also considered that the probability of receiving the bonus is very low.
Because the project gives Retroactive to users because they contribute to the product, not because they have to receive the Airdrop.
So if you have liquidity, don’t withdraw quickly.
Another case is that the Swap is not enough times, or the value is low.
Typically, Ref Finance has Retroactive for users in August 2021, but the conditions are very strict: Swap more than 7 times or provide liquidity for 3 Pools.
There is no standard to determine how the quality of the activities is enough, but in general, if possible, doing it many times, with relative value, will limit these cases. .
Airdrop Coin has become more popular than ever because it is an effective way of marketing and distributing tokens, but it also comes with the disadvantages I mentioned above.
Will there be more new forms of Airdrop in the future? Let the future answer this question.