What is Airdrop?

The concept of airdrop, which has appeared frequently since cryptocurrencies were on the market, has been an effective promotional method for many cryptocurrencies. Although it's not used as a promotional method, exchanges sometimes give tokens to their users. In today's article, we will talk about what an airdrop is, how to get an airdrop, and the potential risks and benefits of an airdrop.

What is Airdrop?

The name of the phrase "raining money from the sky" in the cryptocurrency world is airdrop. To explain further; Airdrop is the distribution of new coins that will be included in the cryptocurrency market free of charge or under certain conditions. The aim here is to introduce people to the money that has just entered the market and to create dynamism in the project ecosystem.

You can think of the airdrop system as a kind of advertising or promotional application for brands to advertise their new products on the market. Just as there is a possibility that the products will not sell despite the advertisements, there is also a possibility that cryptocurrencies will not enter the stock market despite the Airdrop. However, using this system is still an attractive option for coin creators.

How to Get Airdrops?

We always say that the cryptocurrency world requires close attention and follow-up. This also applies to taking advantage of the airdrop. You need to follow the sites of all coins and the channels where the developments related to the cryptocurrency exchange are conveyed. If a coin is going to fork or an altcoin is going to be released, it first announces it on its own site. The conditions required for the airdrop are also notified here and applications are opened. Referrals are sent to people who meet the conditions, and at the end of this, people benefit from AirDrop.

If you have a considerable title in the cryptocurrency world, if you have a large number of followers on social media channels (for people who share about this field), there is a possibility that you can benefit from the airdrop for free. In general, coin managers reach out to these people directly.

How Can You Participate in Airdrop Events on Exchanges?

Exchanges can distribute their own cryptocurrencies and the cryptocurrencies they deal with to their users through airdrops and different methods to promote and increase their use. Since users usually do not receive news by e-mail, it would be good for users to look at the distribution news of cryptocurrencies on exchanges and the places where the distribution is made in their own accounts. In some cases, exchanges may ask their users to participate in airdrop events in different ways. In this case, we recommend that you read and follow the articles on how you can participate in the airdrops of the exchanges.

How Can You Earn Through Airdrop?

Before cryptocurrencies hit the market, they airdrop them for different platforms. It is recommended that you first subscribe to sites that follow airdrop news. After subscribing, it is recommended to enter the mailing lists of certain sites and receive news via e-mails. If you have received airdrop notifications from certain sites, they will first publish technical documents on their sites that explain the features of cryptocurrencies in general and how to use them. After reading the technical documents, you can participate in the airdrop events of the projects you like. However, it should be noted that it is up to your efforts to increase the amount, as they usually give trace amounts of cryptocurrency to participants in airdrops.

The thriving crypto ecosystem has also made airdrop tracking easier. Airdrops, which were previously followed via e-mail and newsletter, can now be followed on social media. The announcement of an airdrop of a crypto project on social media is discovered in a short time with the interaction of the relevant people. For this reason, it is important for users who will follow the airdrop to follow their social media accounts, which are described as airdrop hunters.

What Can Be the Conditions to Earn Airdrops?

Earning airdrops isn't always easy. In the past, crypto projects airdropped without any conditions in order to acquire users. The increasing number of users and the volume in the cryptocurrency market have started to push new projects to different methods. Many crypto startups have started requiring their users to meet certain requirements before airdropping.

The most common airdrop requirement was staking. Crypto projects have started airdropping to those who stake certain cryptocurrencies on their own blockchains or on trending blockchains. This situation, which started in the middle of 2023, has become a big trend in 2024.

In particular, the realization of the Celestia (TIA) airdrop to Cosmos (ATOM) stakers caused a great repercussion in the crypto market. The airdrop of Celestia, a modular blockchain, to ATOM stakers has also set many projects in motion. Crypto projects, which took action after Celestia, started airdropping to ATOM, INJ and TIA stakers. This trend has grown so much in 2024 that investors have recently started staking-oriented transactions.

Another airdrop requirement may be to transact on the blockchains or ecosystems of crypto projects that are likely to airdrop. To give an example, a project called A Coin announced that it would make an airdrop and did not disclose the conditions for it, crypto investors can actively trade in the ecosystem of A Coin if there is one at this point. On the DeFi (decentralized exchange) side, they can try methods such as trading by paying transaction fees or adding liquidity. If there are any projects in question, they can also turn to the NFT side. Minting NFTs can make it easier to earn airdrops from the ecosystem it's in.

Apart from all these, crypto investors can also get airdrops by earning points. Various platforms, such as Galxe, run the task-reward mechanism for the projects they collaborate on. In this way, the tasks determined by the projects and the rewards to be given in return are offered to crypto investors. Points are earned for each task done in the projects, and these points turn into airdrops in the future.

Some Crypto Projects That Have Airdropped

Arbitrum (ARB), Aptos (APT) and Optimism (OP), which entered the cryptocurrency market by airdropping in 2023, had great repercussions. These projects have become the pioneers of the airdrop hype. While there were not many airdrops before 2023, there was a big boom during this period and airdrop news started to come one after another from projects that will enter the crypto market.

The latest airdrop in the industry came from Jupiter Exchange (JUP), which is part of the Solana ecosystem. Jupiter airdropped JUP to those who are active in its ecosystem and make at least one transaction on its decentralized exchange. Jupiter Exchange has allocated $800 million for its airdrop, which has caused a huge repercussion.

If we go back to before Jupiter, one of the first projects we will come across will be AltLayer. The AltLayer team airdropped ETH stakers and increased network activity in its ecosystem for offering restaking services. In addition, AltLayer has announced that it will also airdrop Celestia (TIA) stakers.

Dymension, which was created with the Cosmos SDK and gained popularity in a short time, has also completed the airdrop distribution. The popular crypto project airdropped those who take an active role in the ecosystem, contribute to network transactions, and stake certain cryptocurrencies.

What Are The Risks Of Airdrops?

Since airdrops are promotional events before the release of cryptocurrencies, no money is paid out or payments are made on certain transactions to meet the requirements, but you may be asked to share your wallet information in order to participate in these airdrops. Other risks lie in the problems with the project, its inability to generate a good return, and its inability to be listed on stock exchanges. In the worst-case scenarios lie the fact that the projects turn out to be Ponzi schemes and the problems they have with the controllers.

How Can We Prevent Airdrop Risks?

Since all investment activities, including investing in cryptocurrencies, involve risk, we recommend that you research the projects in detail. We recommend that you closely follow the technical documents, developments and social media accounts of the projects. After researching the projects in detail, we recommend that you invest and then follow the developments closely. In this way, you have the chance to minimize the risks.

Is Airdrop Risky Or Lucrative?

Always, as with everything, there are risks and rewards involved. Namely; The coins that come to you as a gift can rise significantly over time. You can make a profit from something you own without investing. Maybe you can also buy different coins using the coins given after entering the exchange. This can increase your earnings even more. You can then convert your investments into real money or save them in your cryptocurrency wallet; The choice is yours!

In addition to the good scenarios, the coins you get with the airdrop may not gain any value at all, and they may not even be able to enter the stock market. However, if we look at it in real terms, this situation may not be defined as a loss. In other words, it can also be considered as something that is not yours at all. Depending on how you look at it, the worst situation you will experience with an airdrop will not go beyond this.

There is another risk, albeit a small one: fraud. The person or persons who try to use the cryptocurrency exchange for their malicious purposes can trap you with this method. To avoid this, make sure you find the official sites of the coins and do not forget to look at local and foreign sources to confirm the information you find. As long as you pay attention to this, there will be no risky situation.

Conclusion

While airdrops are a great way to promote cryptocurrencies, they come with a high level of risk for both users and project stakeholders. In order to participate in airdrops, we recommend that you enter and follow the mailing lists on airdrop tracking sites. If you are a well-known name in the cryptocurrency space, many project managers will contact you to take advantage of airdrop campaigns for free. However, since airdrops involve potential risks, we recommend that you do a thorough research before participating in projects.