The Basics of Airdrop
When it comes to the world of cryptocurrencies, a term that you might often come across is ‘airdrop’. An airdrop refers to a distribution of tokens or coins to a large number of wallet addresses for free or in exchange for completing certain tasks.
Types of Airdrops
There are generally two types of airdrops: promotional and hard fork airdrops. Promotional airdrops are used by projects to gain visibility and attract new users. Hard fork airdrops occur when a blockchain undergoes a split, leading to the creation of a new token that is distributed to existing holders.
Examples of Airdrops
One notable example of an airdrop is the distribution of Stellar Lumens (XLM) to users of the cryptocurrency wallet provider Blockchain.com. Additionally, projects like EOS and TRON have conducted massive airdrops to their community members.
Case Studies
In 2017, the cryptocurrency platform OmiseGO conducted an airdrop for holders of the Ethereum token. The airdrop resulted in widespread adoption of the OmiseGO platform and a surge in the token’s value. Similarly, the airdrop of Uniswap’s governance token, UNI, to users of the decentralized exchange sparked interest in the platform and led to an increase in its user base.
Statistics on Airdrops
According to a report by Airdrop Alert, the total value of airdropped tokens in 2020 amounted to over $42 million. This indicates the growing popularity of airdrops as a marketing strategy in the cryptocurrency space.
Conclusion
Airdrops have become a common practice in the crypto industry, serving as a means to distribute tokens, promote projects, and reward users. By participating in airdrops, investors can potentially gain access to new tokens and be a part of exciting projects in the blockchain space.
