Types of Crypto Airdrops

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For a crypto airdrop, a new crypto project gives new users cryptocurrency for free. The users could also get crypto in exchange for just performing a simple task on social media. Ever since it became popular, there have been different types of crypto airdrops.

Different Types of Crypto Airdrops

A crypto airdrop is quite similar to receiving a coupon to freely get a sample of a product or service. A crypto airdrop is a term that often applies to free tokens, and it can happen in different ways. The token gets deposited into the wallet of the user. Here are the common types of crypto airdrops:

1.      Standard airdrop

For standard airdrop, a small amount of the new crypto token is transferred to the wallet of the participant. This is done as a reward for an activity like creating an account with a new crypto project or signing up for a newsletter.

The standard airdrop may also require that you provide your wallet and email address or perform tasks like KYC verification. You will get a small amount of virtual currency after completing the task.

2.      Bounty airdrop

For a bounty airdrop, users receive tokens for promoting a blockchain project mostly on social media platforms. For this type of airdrop, users are required to perform a task before the tokens can be airdropped into their wallets.

Some of these tasks are simple and may include creating an Instagram post about the project, sharing a post about the project on Facebook, following the Twitter account of the company, retweeting posts about the project, etc. In other cases, users get free token when they refer other people to the network.

3.      Exclusive airdrop

Exclusive airdrop is reserved for followers loyal to a particular blockchain community or a virtual currency project. This type of airdrop is mostly run by aggregators and websites. They give consistent and loyal followers first dibs of the airdrops released.

Additionally, this type of airdrop project comes with no strings attached in most cases. For instance, 2,500 UNI airdrops were sent by Uniswap to its loyal customers in September 2020. The coins were at the time worth $1,200.

4.      Holder airdrop

Just like its name, holder airdrops are mostly sent to users holding certain coins or tokens of another type of crypto. It is just like being offered a free token of a new virtual project just by holding the coin of a particular crypto.

For instance, new virtual projects created on the Ethereum blockchain have sometimes been offered free tokens to members of the blockchain community. Holders of Bitcoin wallet have also received airdrops of HEX tokens in another instance.

5.      Hard fork airdrop

Hard fork airdrop is not the typical airdrop. It happens when the developers of a particular crypto project alter the protocol code. They do this to create a new version of the blockchain. The original coin and the older version of the blockchain remain under the existing protocol.

Furthermore, the new tokens still operate under the changed protocol. This is known as a “chain split.” When this happens, users holding the original token receive an equal amount of the new virtual crypt project coin in their wallet addresses.

Conclusion

Crypto airdrops involve users getting an amount of token for performing simple tasks. Tasks like providing your email address or social media promotions can get you some token airdropped to your wallet.

Author: Shantun Parmar

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