Understanding Different Types of Crypto Airdrops”
Crypto airdrops have become increasingly popular in the cryptocurrency world as a way for new projects to attract users and build their communities. However, not all crypto airdrops are created equal. In this tutorial, we’ll explore different types of crypto airdrops and how they work.
1. Basic Airdrop: This is the most common type of airdrop where tokens or coins are distributed to users for free without any requirements. The goal is to attract new users to the project and increase its visibility in the market. For example, during the 2017 ICO boom, many projects used basic airdrops as a way to generate buzz and gain traction.
Example: In 2018, Tron (TRX) conducted an airdrop of their TRX tokens to users who held ETH in their wallets during the snapshot period. The goal was to attract new users to the Tron ecosystem and increase its user base.
2. Referral Airdrop: This type of airdrop rewards existing users for referring new users to the project. The referrer receives tokens or coins as a reward, while the referred user also gets some incentive for joining the platform. Referral airdrops are an effective way to build a community and encourage word-of-mouth marketing.
Example: In 2019, Binance launched its “Refer a Friend” program where users who refer new users to the exchange receive BNB tokens as a reward. The referred user also receives a discount on their trading fees for signing up through the referral link.
3. Task-Based Airdrop: This type of airdrop requires users to complete certain tasks or activities in order to earn rewards. These tasks can range from social media engagement, content creation, or participating in community events. Task-based airdrops are an effective way for projects to build brand awareness and engage with their communities.
Example: In 2019, EOS VC launched its “EOS VC Hackathon” where developers were invited to create dApps on the EOSIO platform in exchange for rewards. The goal was to encourage innovation and development within the EOS ecosystem while also building a community of developers around the project.
4. Staking-Based Airdrop: This type of airdrop requires users to stake their tokens or coins as collateral in order to earn rewards. These staked assets can be used for various purposes, such as securing the network or participating in governance decisions. Staking-based airdrops are an effective way for projects to incentivize long-term involvement and promote community engagement.
Example: In 2019, Tezos (XTZ) launched its “Baking Rewards” program where users who stake their XTZ tokens can earn rewards in exchange for securing the network. The goal was to encourage long-term participation and incentivize users to become active members of the community.