In the crypto world, there are many ways of distributing tokens to users. One of the most popular methods is airdrop. Crypto airdrop can be a great opportunity to form your initial capital. However, to find a profitable project, you need to follow certain rules and strategies. In this article, we will consider what steps you need to take to successfully participate in crypto airdrops.
Why do projects give away airdrop coins?
A crypto airdrop is a marketing and distribution strategy commonly used by crypto projects to distribute free tokens or coins to a targeted audience. These free tokens are typically distributed to holders of a specific cryptocurrency, users of a particular platform, or participants in a community to promote a new project or incentivize adoption.
By doing simple tasks, users not only test new functionalities of the project, but also increase its popularity. As a reward for their efforts, they can receive tokens or other bonuses.
For example, the Arbitrum project gave its participants the opportunity to earn tokens worth more than $1000 for doing simple operations before the official launch.
These activities included: using bridges, cryptocurrency exchanges, participating in staking, and completing tasks on social media. People who made simple operations in the project for several months received decent rewards. Some testers received $3500 per account.
Airdrop participants performed the role of testers, helping to identify technical mistakes and bugs, and promoting the project’s brand. Let’s take a look at the steps you need to take to successfully participate in airdrop.
Step 1: Find out who and how much has been invested in the project.
If we see big players such as Coinbase Ventures or Paradigm, the project is probably worthy of your attention and analysis. Large investment funds want to make a lot of money, they have a lot of experienced analysts working for them. Therefore, such organizations are unlikely to invest in garbage startups that won’t be able to bring them profit.
The amount of investment is a significant factor. The more funds a project has raised, the more resources it can allocate to develop its ecosystem and community. To analyze a project, use the cryptorank.io website. In the search bar, write the name of the project you are interested in and learn who has invested in the startup and what amounts.
Step 2: Make sure the project solves a relevant problem.
Projects that focus on solving actual user problems have a better chance of success. For example, transactions on the Ethereum network are processed quite slowly. In addition, transaction fees on this network can be very expensive. The Arbitrum project, which we mentioned above, offered an effective technological solution to speed up and make ether transactions cheaper.
One of the most popular projects at the moment is LayerZero. This startup acts as a bridge between different blockchains. That’s why such a crypto project has raised $263 million in investment.
Step 3: Find out the estimated value of the project
The estimated value of a project helps determine how much value it can acquire in the future. It is formed based on the team’s internal valuation and early investors’ investments.
For example, the Zora project is currently valued at approximately $600 million, which is a significant amount in the crypto industry.
Step 4: Look at the tokenomics of the project
Tokenomics is one of the most important elements of the fundamental analysis of a crypto project. Tokenomics is a chart that shows where the project team is going to allocate the money received from the investment. Often, the tokenomics of a project indicates how much of the total issuance will be distributed to the community in the form of rewards.
This is an important indicator that points to possible airdrops. For example, the tokenomics of the Aptos project states that 51% of the tokens will be allocated to the community. So far, the project team has only distributed 2%.
Step 5: Pay attention to the activity within the project.
Activity is something for which airdrop participants receive bonuses. Good projects have plenty of such activities both in the test and main network. For example, users may be encouraged to create NFTs, exchange tokens, use cross-chains and bridges.
Platforms for monitoring airdrops:
- AirdropAlert is one of the most popular resources specializing in airdrops. It doesn’t publish all available airdrops but highlights the most promising ones. You can subscribe to their newsletter to get notifications about current giveaways.
- Airdrops.io — This service publishes more airdrops than AirdropAlert, grouping them into different categories. Here you will find “hot” airdrops, as well as up-to-date information about upcoming giveaways.
- Alphainsiders is a Twitter account that publishes up-to-date news of promising projects.
- DappRadar is one of the leading services for tracking DeFi projects, which also organizes airdrops from its partners. To participate in them, you need to register on the site and connect your cryptocurrency wallet.
Participating in crypto airdrops can be profitable, but requires caution. By following the above steps and being attentive to details, you will be able to find profitable airdrops and increase your cryptocurrency capital.