Airdrop Alert: An Excellent Opportunity to Benefit from Crypto Airdrops
It is the cryptocurrency sector airdrop season, and the savvy investor is scanning its grapevines for the latest airdrop alert. Crypto airdrops can reap thousands of dollars in returns and expedite a blockchain project’s adoption process.
Airdrops are a creative marketing tactic that project teams and developers leverage in crypto token promotions. The marketing team will, for instance, send alerts via press releases, social media and blogs warning loyal users or their target audience of an impending free token issuance process.
Therefore, a crypto airdrop is an excellent risk-free opportunity to collect free digital currencies that may increase in value in the future. A guerilla marketing tactic, airdrops make a clean break with the common marketing approach, forcefully grabbing user attention via viral social media messaging.
They will exploit the market’s FOMO (Fear of Missing Out) sentiment and its all-pervasive love of free things. Therefore, they are low cost and small budget strategies that create a huge buzz and long-lasting impact on each individual who experiences them firsthand.
A crypto airdrop alert, however, does much more than project promotion. It will stimulate excitement and conversation around a blockchain service and attract more investors.
A successful crypto airdrop can bootstrap a new project. On top of that, airdrops are an excellent decentralized token distribution tool. They support the fair distribution of governance tokens on project launch.
History of crypto airdrops
Cryptocurrency airdrops are a phenomenon as old as the sector itself. As an illustration, Gavin Andersen’s freebitcoins.appspot.com site gave away 5 BTC free in 2010. To win the free bitcoin, all that its visitors had to do was solve a captcha!
Back then, Gavin was the chief Bitcoin blockchain software developer and used the site to create awareness about BTC. He gave away 19,700 BTC in the airdrop process. That BTC is worth a fortune today.
Since then, thousands of blockchain projects have issued airdrop alerts. One of the most exciting early crypto alerts, for instance, was the Decred airdrop in 2016. The Decred airdrop issued 258,000 DCR. At its April 2021 peak, one DCR token was worth $246 from lows of $1.2 at issuance.
At the height of the ICO season, the peculiar airdrop phenomenon went mainstream in 2017. Thousands of projects issued free tokens to holders. While some of these tokens were worthless, others opened doors to fortunes. But airdrops were not the reserve of new projects. Hard forks and established blockchains also leveraged them to pump up their popularity.
For instance, Bitcoin Cash and Stellar blockchains held impressive airdrop projects in 2017. In June 2017, Stellar issued $1000 XLM per BTC to every bitcoin holder. The decentralized, open-source low-cost digital currency transfers protocol gave away 19% of its supply in this particular airdrop.
In 2018, Stellar once more issued $125,000,000 XLM tokens to users in one of the sector’s largest crypto airdrops. However, since February 2019, BitTorrent has been giving 100 billion BTT to TRX holders. The BTT airdrop will run till 2025.
Some of the most recent lucrative airdrops include the Uniswap (UNI), 1inch, OpenDAO and the Ethereum Name Service (ENS) airdrops. For example, the 2020 Uniswap airdrop gave all its decentralized exchange (DEX) users free UNI.
Eligible accounts that had carried out a minimum of one transaction on the DEX earned 400 UNI. Most free token recipients quickly offloaded their tokens in exchanges for an average of $2 to $4. The long-term UNI holder, however, enjoyed higher returns. Later, UNI rose to an all-time high of $43 in May 2021.
The 1inch airdrop alert went out in late 2020. The DEX gave away 90 million 1INCH to over 55,000 addresses. All users had to do to win some 1INCH was make a minimum of four trades or a $20 trade on the DEX.
Afterwards, the price of 1INCH quickly rose from $2.7 to an all-time high of $7.4 in May 2021. The juicy ENS airdrop took place in November 2021. The decentralized Domain Name System (DNS) service, the issuer of Ethereum wallet addresses or .eth domain names, gave away 25% of the $ENS supply to .ETH holders.
On the other hand, the OpenDAO, $SOS airdrop rewarded OpenSea users with a token that skyrocketed in value by 1000% in a few days of trading.
The token’s value rose from lows of $26 at issuance to an all-time high of $77 in two weeks of trading. Did you know that countries have also joined the airdrop craze? El Salvador, for instance, gave each adult citizen that downloaded its BTC wallet app $30 worth of BTC in June 2021.
Ukraine had also proposed a crypto airdrop to its crypto donation campaign supporters but has since scrapped it and adopted NFT airdrops instead.
How to benefit from crypto airdrops
Crypto airdrops are tools that help create ‘skin-in-the-game’ supporters. They cultivate engagement and drive participation in blockchain projects. Additionally, crypto giveaways can help fledgling projects scale and have massive benefits for the user.
Crypto investors can benefit from crypto airdrops and make juicy returns from free cryptocurrencies. However, to profit from crypto airdrops, you must access an airdrop alert from crypto news aggregator websites such as Algory.
The Algory News Scanner is the ideal source for real-time cryptocurrency industry news. Use it to monitor thousands of news sources and airdrop websites. Then, be the first to know and stake your claim on the best use case project tokens at the bottom of the barrel token prices.
You can benefit from your airdrop tokens by;
1. Collecting as many safe airdrops as possible
You can make massive returns from free token giveaways by catching the best tokens in their early stages of value increase. These free tokens will not only accrue value but diversify your portfolio. That said, here is a caveat emptor.
While it is true that you can make returns as an early airdrop investor, you will also encounter multitudes of fake, scam and suspicious projects online. So do your homework using research tools such as the Algory crypto market scanning tool’s filters and alerts, and pinpoint any scammy airdrop alert in time.
If you fail to research, you could spend hours meeting a token airdrop’s eligibility criteria and win worthless tokens at the end of it all. Some crypto airdrops are gateways to phishing, hacking, dusting or pump-and-dump schemes.
As an illustration, Oyster Pearl issued 2227 PRL tokens in an exclusive airdrop in November 2017. It was one of the most sought after airdrops at the time. At its peak, the airdrop was worth over $11,000. Unfortunately, its anonymous founder, who went by the pseudonym Bruno Block, drained all value out of PRL tokens, defrauding Oyster’s early backers.
Stay safe, and Do Your Own Research (DYOR). Understand a project’s use case before giving it your support. Most fraudsters shill worthless projects. To catch the pump-and-dump schemes at inception, steer clear of the token airdrop that is about hype rather than value.
Such projects may be rug pull projects and phishing projects that leave you vulnerable to marketing spam. In addition, some fraudsters sell private data such as public and email addresses to third parties.
Then, as a rule of thumb, all airdrop alerts are free giveaways. So avoid airdrop alerts that request you for cash, crypto, private keys or seed phrases in return for free tokens.
2. Staking your free tokens
Hundreds of proof-of-stakes (PoS) blockchain projects issue airdrop alerts every other day. As an illustration, Cosmos and Solana ecosystems could launch airdrops. Then, you could stake these tokens and earn yield.
Staking free PoS tokens opens doors to staking rewards and decentralized finance protocols such as liquidity mining and yield farming. As an illustration, on March 2021, the Anchor Protocol gave away 50 million ANC or 5% of its supply to Terra (LUNA) stakers. LUNA holders that continue to stake their tokens will earn more and free ANC for two years.
Additionally, you could earn residual airdrop tokens when you stake your initial giveaway tokens. Staking unlocks valuable rewards to stakers and validators. As an illustration, Osmosis (OSMO), a Cosmos project, gave ATOM holders 20% of OSMO supply on launch.
However, the recipients that staked OSMO as validators earned the remaining 80% of its tokens. The Osmosis team game plan was to incentivize any nodes that secure their network.
Staking also opens doors to governance rewards while shaping decentralized communities. For example, you could earn more airdrop tokens by participating in blockchain governance processes. JET Protocol, for instance, a Solana project, has a Jet Governance module that airdrops tokens to holders that vote on proposals. Stakers also earn more $JET when the token lock period is complete.
3. Earning more tokens via referrals
Free token distribution can also function as a reward system that compensates community members who enhance project awareness online. The incentivization of chief project awareness champions ensures that decentralized applications’ use cases and tokens reach broad audiences before their exchange trading process kicks off.
A high level of project awareness could result in quick token value increases on project launch. To this end, you can benefit from crypto airdrops by partaking in airdrop referral systems. Do your research on an airdrop alert, join a referral system, invite your friends to the project and earn referral airdrop tokens.
4. Earning tokens by meeting all airdrop criteria.
There are several types of airdrops. A standard airdrop promotes a token by sending crypto tokens to wallet addresses. These airdrops benefit beginners and experienced crypto traders alike since they have low eligibility criteria.
Other forms of crypto airdrops reward users that meet specific activity thresholds. As an illustration, bounty airdrops will reward project promoters while the exclusive airdrops target genuine project users. The holder airdrop may target the stakers or investors with a certain number of related tokens in their wallets.
You, too, can benefit from exclusive airdrops by meeting criteria such as playing games to earn cryptocurrencies or learning about crypto. As an illustration, you could earn free XLM by simply learning more about it. Other exclusive airdrop token award tasks include creating wallets or trading on a DEX.
Other benefits of crypto airdrops
- They are a risk-free crypto investment strategy.
You will not lose any investment capital should your airdrop token lose its value. You have to watch out for scams when seeking out free crypto coins. - They are an opportunity to get in on the action at project infancy.
Airdrop tokens could reward long term holders with 100X returns. - Income generation
Professional bounty or airdrop hunters make an income off airdrop tokens and their referral systems. - Crypto education opportunities
An airdrop alert is an excellent crypto education opportunity. Join a project’s telegram group or discord server and learn more about the crypto world.
Conclusion
Discovering an early airdrop alert is key to benefitting from the best crypto airdrops. Use the Algory crypto news aggregator to scan the crypto world for the latest airdrop news, and exchanges issue bonuses for maximum benefits.
