How does crypto airdrop work cover

How does crypto airdrop work

Published Nov 21, 2023 by CryptoDiary

If you are into crypto, you may have heard of airdrops. You may have seen people on the web who have managed to receive thousands of dollars worth of coins for free, just for participating in some kind of event called Airdrop. For those who are curious about getting free crypto, there is a - a place where you can find all the needed information about crypto airdrops gathered together. 

So what is an airdrop? Airdrop is a process of giving off free tokens to a community held with marketing purposes. Receiving an airdrop you basically earn crypto without doing any investments. In this article, we are going to review the existing airdrop types and explain their features and differences between them. Before we start, you should understand that there are 3 main types of airdrops existing: Airdrop, Retrodrop and a Testnet. Each type has its own unique concept and features. 

Airdrop in its classic definition is a planned spread of free tokens among users. The whole process involves making an announcement letting users know that there is an Airdrop upcoming. It allows holders to get prepared and be ready to join when the time comes. Also, an exact number of tokens which are going to be spread is known in advance as it is mentioned in the announcement. Keep in mind that you can browse all the announcements on Airdrops tab of our website.

Some of the projects require certain actions to be done by a user to become eligible for airdrop. In such cases, the required actions and exact reward for each particular task are known in advance, which is a huge plus for users. Another common practice is rewarding a limited number of users. For example, some of the airdrops are spread among top 100 users only. Sometimes only the first 1000 of users claiming a reward are eligible for free tokens. Finally, there are projects who may randomly choose participants to receive an airdrop. The ways of spreading free tokens are unique and are only limited by the project runners’ imagination. 

In crypto, every user is a valuable asset for each project. Technically, it is anyway costly for any project to involve new public investors, as it may require high budgets spent for marketing. Holding an airdrop is a great solution for a project runner as instead of spending thousands of dollars on advertisements, these funds may be spread among the community, which is going to increase public loyalty and attract lots of new users. Airdrop announcements are distributed quickly around the Internet, which is anyway a great marketing for the rewards-giving project.  

Retrodrop is a process of rewarding users retrospectively. In simple words, the reward is sent to those users who are already holding some tokens, have some activity or met some requirements set by a project runner. By spreading retrodrop, users are rewarded for their activity and loyalty, it can be considered a sign of appreciation for taking an active part of the project's life and development. 

The greatest disadvantage of retrodrops, however, is the fact that you can not be sure that the drop indeed is going to happen.  Unlike traditional airdrops, retrodrops are not announced in advance, sometimes project runners even deny any forthcoming drops. While the probability of retrodrop is lower due to the lack of certainty, in most cases the potential rewards are significantly higher. Users eligible for retrodrop may sometimes receive thousands of dollars in rewards. In fact, holders of DYDX, RBN for example received $10 000- $20 000 in rewards, which is a decent amount anyway. Moreover, there is often no instruction on how to get eligible for a drop, which makes it even more complicated to join. In order to understand the required actions, users should use all the available crypto experience to guess what to do. This is where comes into play, as our experienced team keeps updating our detailed guides on all the potential retrodrops. With Cryptoset you are not going to miss a single upcoming free crypto airdrop and going to be able to do all the required action thanks to our detailed instructions. You may also like to join some projects’ communities to follow, we have Crypto Communities gathered too. aims to be your ultimate guide to navigate the unpredictable world of free rewards. 

By this point, you may ask yourself: Why do projects keep giving thousands of dollars for free? Well, most of the retrodrops are announced in conjunction with new token launch by top-tier projects, which have already collected millions of dollars of investments from leading investors. Due to legal constraints, tokens can only be sold to the project’s investors, but can not be distributed among the public directly. That is why rewarding loyal users with a retrodrop is an easy solution which not only help to bypass the legal restriction, but also has some positive effects on the projects. By incentivizing users in such a way, the project gains a community of dedicated token holders and substantial attention and publicity: giving off large amount of tokens guarantees widespread recognition, significantly affecting token’s price on the market. 

Finally, a Testnet - is a process of rewarding users for testing an unreleased project. Technically, we can call testnet a phase of a blockchain project development when real users are invited to join and try out the future functionality. The main purpose for a project is to speed up development and receive feedback and bug reports from testers. Users themselves receive a chance to be among the first who saw the project’s functionality and be rewarded after the test period ends. 

The concept of testing is that users may play around with functionality in a specially created network. The test environment allows the public to interact with transactions functionality using virtual tokens which do not have any real-life value. This is a great opportunity for those who are new to crypto to familiarize themselves with blockchain functionalities, try out dApps and to deepen understanding on how do smart contract work without any fear of financial losses. This is why testnets are not only beneficial for project developers, but also for users participating in testing.

To motivate users to join testings, it is common practice for projects to reward users for participating. After the official launch, testers may receive some of their testing tokens as a reward for taking part in development. For example, Aptos for a mint of NFT or activity on the testnet, users could receive up to $3,600 per account. 

In order to be aware of all the upcoming testnets and required steps to receive some freebies, keep an eye on our website or follow up on Twitter. Cryptoset team is passionate to keep you updated about the important crypto activities which are worth your attention. 

There are also some smaller airdrop types, which can’t be ignored. You may also be participating in Bounty Airdrop - reward is given from those who have done some easy advertising work (followed project’s social media, liked or commented on some posts, subscribed to a newsletter, etc). Or, you may also want to join a Holder Airdrop - a type of airdrop which rewards users for holding some amount of project’s tokens. You may also find yourself participating in Hard Fork Airdrop - when a protocol hard forks from its original code, developers may often airdrop the new coins to relocate original users. Those who spend a long time in crypto may sometimes receive Exclusive Airdrop - a reward which is given to those users who have an active wallet for a long period of time or show a certain lasting activity within a forum. Finally, you may want to take part in Raffle Airdrop - basically a lottery, which happens when a startup teases a fixed amount of rewards but gets an overwhelming response. In this case, users who are going to receive a reward are chosen randomly, so only the luckiest ones receive a desired airdrop.

Modern-day airdrops are a popular and desired way of getting freebies. It's not surprising, as whether you are only exploring the world of crypto, or you are already a chad - everyone loves getting money for nothing, right? To stay tuned with all the best upcoming Airdrops, Retrodrops or other useful activities, make sure to check Here you can find listings and guides to upcoming airdrops with instructions on how to join. You can also follow us on Twitter where we publish tons of interesting crypto-related stuff. See you there! 

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