What Are Crypto Airdrops and How It Works? 


Is free crypto really a thing today? We all know that scammers often weaponize this too-good-to-be-true promise to attract users and ultimately defraud them.  

But, yes, a free crypto is still a thing today. This is especially possible given the marketing efforts of new crypto projects to increase awareness. One notable example is through crypto airdrop, wherein blockchain projects give away free cryptocurrency to their target users, founding users, or loyal customers.  

It’s called airdrop as it functions like one – facilitating direct wallet-to-wallet transfer to bypass intermediaries and eliminate fees.  

In this TRU Insight, we’ll explore the ins and outs of crypto airdrops, including their operation, function, types, and underlying legitimacy and security. 

Crypto Airdrops Explained 

The cryptocurrency market is booming with the continuous entry of new crypto projects. One way to stand out is, of course, to give away free cryptocurrencies to attract users or retain them in their network or platform.  

Crypto airdrop functions just like that. It’s a marketing effort done to create buzz around the new project or feature. 

Imagine this as a free product sample distributed by brands to allow customers to experience the product firsthand. Instead, crypto airdrop provides an avenue for new users to test out the network ecosystem before furthering their usage of it. 

How Does Crypto Airdrop Work? 

Again, crypto airdrop is a marketing effort to promote the project, reward loyal users, and increase liquidity to ultimately kickstart the project’s tokenomics. 

Various crypto market teams do crypto airdrops in various ways; however, they follow common ground to perform them.  

Firstly, the company or developer announces the airdrop details and requirements through their official channel, like social media, websites, or email campaigns.  

After the announcement is the entry of interested participants. They register for the crypto airdrop by providing their wallet address and other necessary information to facilitate the transfer.  

Followed by this is the validation of the participant’s eligibility. If eligible, the participant receives free crypto in their wallet, which they can use according to the terms and conditions of the company.  

Four Types of Crypto Airdrops 

Crypto airdrops are a popular way for blockchain projects to distribute tokens and engage with their community.  

Let’s explore the four main types of crypto airdrops: 

Standard Airdrop 

A standard airdrop is open to all participants who register for the event. However, its open nature entails the distribution of a small amount of cryptocurrency to ensure sustainability.  

No specific tasks are required other than signing up. It’s a straightforward way to distribute tokens to a wide audience. However, this doesn’t mean this type of airdrop has no eligibility requirements.  

Bounty Airdrop  

Bounty airdrops are typically task-based crypto distribution. The crypto project developer published a marketing campaign that requires interested users to perform different tasks to be eligible for free cryptocurrencies. 

Typically, this includes subscribing to the project’s channels, signing up to their community, or sharing content to increase the project’s reach.  

Holder Airdrop 

As the name suggests, crypto holder airdrop gives free cryptocurrencies to those users who are holding a predetermined amount of the project’s cryptocurrency.  

This is an effort to retain users’ engagement and encourage further network interaction.  

Additionally, this type of crypto airdrop typically occurs when a project undergoes a hard fork. This effort is to reward and encourage holders to go to the forked cryptocurrency instead of the previous one.  

Exclusive Airdrop 

Exclusive crypto airdrops have not campaigned publicly as they ultimately target a specific group of users. The selection might be based on the user’s tenure, engagement level, involvement in non-token activities, or other reasons that constitute eligibility for rewards. 

Beware of Crypto Airdrop Scams 

Crypto airdrops are hotspots for scammers. With the promise of easy access to free cryptocurrencies, crypto airdrops present perfect leverages to perform scams.  

Phishing the unsuspecting victims’ information is a common method used in this type of scam.  

Typically, the scammer pretends to be an affiliate or representative of a crypto project. Once the false sense of association is created, the fraudster starts the actual scheme—phishing the user’s wallet information to access the wallet and drain the balance.  

To prevent such scams from exhausting your holdings, ensure that you consistently verify the campaigned information on the official channels of the crypto project.  

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