Think of a crypto airdrop as a free giveaway, where new digital coins or tokens are handed out to people who already own some cryptocurrency or those who do a few tasks. Blockchain startups use this tactic a lot, kind of like a promo, to get the word out about their new projects.

Moreover, digital assets can have multiple use cases. Over different periods, they can grant users decision-making powers within a network or give them VIP access to content via NFTs. What’s cool about these assets? They can be swapped or sold super easily. That’s because they’re highly liquid. So, if you get assets through an airdrop, you could trade them for other cryptocurrencies or even cash them out into your local currency.

How Do Crypto Airdrops Work? 

There’s a variety of airdrops out there, but a common thread is that you typically need to register in some way to get those free digital goodies sent to the right wallet address. For some airdrops, you might need to do a task or two. Regardless of the requirements, the end game is pretty much the same: make sure your wallet address gets noted down before the deadline.

When a startup sets its sights on an airdrop, the kickoff is usually a public campaign. To get the word out, they often take to places like forums and social media like Discord and Twitter. Create a buzz around a new platform launch or a fresh feature, and of course, the juicy airdrop reward.

As the hype builds, the next move for these companies is to make a list of who’s getting the tokens. This isn’t one-size-fits-all; they might gather wallet addresses from those who show interest, or they might take a ‘snapshot’ at a specific moment. This snapshot helps them see who’s eligible based on certain criteria. For instance, if they want to reward those who were using their platform before September, they’ll take a snapshot of all the active wallet addresses from that period.