Heard people talking about Web3 airdrops but not sure what they are? In this blog we will simply define and explain them.
A Simple Explanation Of Web3 Airdrops
An airdrop is a free gift on Web3. They come in the form of cryptocurrency, tokens or NFTs which are sent directly to wallet addresses. They are usually promoting a new token as part of a marketing campaign. But beware, not all airdrops are considered safe.
Different Types of Airdrops
Everyone loves something for nothing and airdrops are just that on Web3. They are used as a marketing tool to promote anything from a new cryptocurrency or NFT to potentially a DAO (Decentralized Autonomous Organization). They come in four main types:
Standard airdrop – this is when an amount of cryptocurrency is sent to a user in exchange for a small favor such as subscribing to a newsletter, signing up with a dapp, sharing on social media or joining a whitelist, a list of exclusive users. It’s a little thank you from a new platform trying to establish itself in Web3. These are sometimes known as bounty airdrops because of the reward for performing a small task. A standard airdrop may actually offer you something for nothing.
Exclusive (or holder) airdrop – these are sent to users who own a certain amount of a particular cryptocurrency as a reward for their loyalty. Again, it’s another thank you but this one is going out to well established customers rather than potential new ones.
NFT airdrop – these may be distributed for any number of reasons. It may be a promotion, a giveaway or because you hold another NFT from the same collection. Most will be worth little although there is always the chance you may get lucky. There is also the chance you may get unlucky and it could be a scam. If an airdrop arrives without notice from an unknown source, proceed with extreme caution and avoid trading it.
Hardfork airdrop – this occurs when a hardfork is created in a blockchain and requires a new token. A hardfork is a permanent split in a blockchain. Your old tokens will still be good for the old version of the blockchain but you may be airdropped an equal amount of new tokens for the hardfork.
Airdrop Farming
To receive an airdrop, you must first be eligible for an airdrop. That means adding your wallet address to a Web3 dapp. On the Ethereum blockchain for instance, you’ll need to head to Earnie.fi. You will then be notified if you have any unclaimed airdrops. Some people use Web3 to collect as many airdrops or free rewards as they can. This is known as airdrop farming.
Airdrop Safety
Airdrops are considered a vital part of the Web3 fabric and are used mostly for promotional and marketing purposes. However some may be malicious and merely another form of phishing. When receiving an airdrop, apply all of the same rules and logic that you would when receiving an email.
- Is this the first time you have received an airdrop from this source?
- Are they requesting a small payment to receive the airdrop?
- Are they requesting private information or passwords?
- Is it a new or unverified cryptocurrency or NFT?
- Does it include links to a site requesting you connect your wallet?
- Are they offering to assist you by giving them access to your computer?
If the answer to any of these questions is yes, it’s almost certainly a scam. The old adage applies again, if it looks too good to be true, you can bet it is! If your senses have been pricked in any way, always do your research on any airdropped token before proceeding, including asking others in your community as to whether they have encountered one too.
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