What are Airdrops
Airdrops are a way of getting free cryptocurrency tokens by doing simple tasks or holding certain coins. Many crypto projects use airdrops to promote their project, increase their user base, reward their supporters and create a network effect.
What are Airdrops
Many crypto companies give away free coins to their users to make their project more popular, increase the number of coins in use and make people trade more. These free giveaways are called airdrops. This is good for both sides because the company gets free advertising, and you get free crypto.
- To increase their project’s visibility and popularity
- To increase the circulating supply and stimulate trade of their tokens
- To create a network of users who are motivated to support their project
- To encourage users to hold their tokens for the long-term
- To reward early adopters and loyal supporters
How much Can I earn from Airdrops
The answer depends on several factors, such as the number of airdrops you participate in, the value of the tokens you receive, the market conditions, the rules of the airdrop and your luck. Some airdrops may require you to do more work than others, such as joining social media groups, sharing posts, filling out forms or referring friends. Some airdrops may give you tokens just for holding a specific coin in your wallet at a certain time or block.
The average value of an airdrop is around $30, but it can vary a lot depending on the project and the demand for the token. Some airdrops may be worth only a few cents, while others may be worth hundreds or even thousands of dollars. For example, one of the most famous and profitable airdrops was Uniswap, which gave 400 UNI tokens to every wallet that interacted with its protocol before September 2020. The total amount of airdropped coins was 10 million, worth approximately $42 million at the time. The token later shot up to nearly $11, bringing the value of the airdrop to $100 million.