ICO Airdrop Details
What’s an ICO airdrop?
An ICO airdrop will happen when a blockchain-enabled project distributes its free tokens to the entire crypto community. In order to be eligible to receive airdropped tokens, you need to own some coins that are based on the same blockchain on which the project is built. A few examples of airdropped tokens that have had successful ICOs (such as Eligma, BunnyToken, Aktie Social, Qilin.Market, PodOne, EQUI). and later become popular cryptocurrencies include OmiseGo, Stellar Lumens, and Byteball.
Some airdropped tokens are conveyed to the targeted audience through social media posts, or the receiver can even get in touch with a team member on the bitcointalk.org forum. Put simply, the blockchain-based project giving away the free tokens uses airdropping as a marketing move.
The format of such giveaways is something like this:
- During the pre-announcement phase, the project backing the event will click a “snapshot” of the blockchain.
- If, at the time of taking the snapshot, someone is holding Bitcoin or Ether, they’ll receive a specified number of free tokens.
Airdropping can be done on any blockchain, but Bitcoin and Ethereum blockchains are the most used, owing to their popularity.
How to apply for airdrops ?
Every airdrop will have different rules. If you’re organizing an airdrop, create your very own Bitcointalk forum account. Through this account, the visitors will first apply for the airdrop. While applying for an airdrop, the visitor will need to contact the forum’s modulator via personal messages.
A classic example of this format is the Ethereum Dark airdrop. Any person who wanted to apply for the ETH airdrop needed to send a personal message in order to receive the tokens. However, a newbie operating on the forum will be refused the airdrops. If you are looking to receiving airdrops through a forum, then post occasionally on it to secure a high rank.
Sometimes, receiving an airdrop will even require you to retweet on Twitter; many times, you should have a specific number of followers on a social media channel to be the receiver of an airdrop. All in all, you have to maintain active social media accounts in order to be eligible to receive free tokens.
Also, check your crypto wallets frequently to see whether you’ve received a surprise airdropped token. Some platforms, such as Komodo or Waves, have already delivered airdropped tokens to their holders without any prior announcements. If you’re an investor holding a diverse cryptocurrency portfolio, you’re likely to receive more airdropped tokens than others.
Why would a blockchain project deliver free tokens, anyway?
If you aren’t paying a single penny for the product, then that means you’re the product. By doing an airdrop, a project may successfully create undeniable awareness about its tokens or its ICO sale. By executing airdrops, the team behind an ICO project will attract people who may be interested in it or may not have heard about it.
When an airdrop is successfully carried out, the token’s price can experience appreciation. (This phenomenon is called the endowment effect.) Airdrops, if done successfully, can create a big network/community of people who actually own the tokens.
If you list the token distribution through a pie graph right after an ICO sale has finished, a large part of that pie will still be owned by the project or its development team; another part of that pie will be owned by all those who’ve joined the pre-sale; plus, a reasonable part will be owned by those who’ve already invested in the ICO sale.
With an airdrop, you actually add an extra slice to that pie—and that slice will definitely have a lot of people in it. (After all, everyone likes freebies.)
Plus, an airdrop can also plant a seed. There are thousands of cryptocurrencies, today; however, do you remember the name of any coin except the popular ones? Well, if you’ve received a free token during an airdrop, then you’ll remember its name when you see it as a coin on an exchange; that’s how the seed gets planted. In short, airdropping a token is similar to advertising the whole project.
Airdropped tokens come in a wide variety
Today, ICO-launching businesses are building exclusive marketing campaigns. By carrying out well-planned marketing strategies, a business tries to spread the word about its upcoming ICO pre-sale and crowd sale. When it’s about ICO marketing, it’s definitely about airdropping. As one of the most powerful marketing strategies that ICOs are adopting today, airdropping is becoming known for improving an ICO project’s traction by a wide margin.
Today, investors are more interested in knowing about the process of receiving free tokens. Some of the airdropped ICOs want their prospective investors to retweet a pinned tweet or like a Facebook page. Likewise, airdropping can even include an investor getting paid for watching an ad or a pre-roll.
Here are the most common types of airdrops happening in the ICO space today:
Social media airdrops
- According to this strategy, investors are given airdropped tokens for performing different tasks on social media channels.
- This strategy lets businesses reward tokens to anyone who has signed up on a specific network.
- According to this strategy, a business gives reward tokens to all its existing customers whose referrals successfully sign up on a network.
- These airdropped tokens are given to the token holders of the blockchain that is getting hard-forked.
- In this airdropping strategy, the token holders generally receive a duplicated amount of freshly generated tokens.
- In the crypto landscape, some websites may host exclusive airdrops.
- Generally, these airdrops are far more rewarding than a traditional airdrop.
Is there a place to sell the airdropped tokens?
Now, once you own free tokens, what will you do with them? Many projects that distribute free tokens are still in their pre-ICO phase or have just winded up their ICO sale. Because of this, the tokens won’t be traded on bigger exchanges for the time being. However, once the token that you received during an airdrop increases in its value, you may sell it on any leading exchanges that list it.
There are a few crypto exchanges that buy and sell airdropped tokens. To trade the freebies on the exchange, you need to first create an account on the platform. Some previous ICO projects did many airdrops. (These projects include DECRED, Ripple, and NEM.) Plus, you needn’t immediately sell your free digital holdings because there’s nothing wrong with being a HODLer.
The must-have tools to get airdropped tokens
In order to secure free tokens, you’ll need some of the following tools.
- An Ethereum wallet: Most of the airdropped tokens comply with the ERC20 standard, so it’s best if you have a wallet that’s ERC20 compatible. For example, you can use either MyEtherWallet or MetaMask as your Ethereum Wallet.
- An active wallet: Having a wallet that’s never been used doesn’t work if you want to lay your hands on some free tokens. It turns out that you have to own an Ethereum wallet that’s been used. Some companies may even check whether you’re a spammer who’s created a bunch of Ethereum wallets just to get a sizeable number of free tokens. The company that’s doing the airdrop will check that by analyzing the activities done in the wallet.
- A Telegram account: The airdropping company wants to boost its token value and that’s exactly why it may ask you to sign up for its own Telegram account. The more users who join its Telegram account, the better visibility it gets on this chat client. Most importantly, you’re not supposed to leave the company’s Telegram account until you receive the airdropped tokens in your wallet.
- A Twitter account: Sometimes, you may receive an airdropped token just for retweeting a pinned tweet. That’s why it makes sense to follow the company that’s organizing the airdrop on Twitter or similar social channels and to do its bidding.
- Email address: Most of the time, an airdropping company will want you to supply your email address. If you aren’t comfortable giving your real email, just create a secondary one. However, do remember the password because you’ll have to access it in order to receive your free tokens. (Many airdropping companies may want you to confirm your email before they send you the reward tokens.)
How can I safely store the free tokens?
One way to securely store all your airdropped tokens is by putting them in a cold-storage wallet or a hardware one. Such wallets store all the tokens offline, and that’s what protects them from getting hacked. You can choose from a wide range of hardware wallets—our pick would be either Trezor or Ledger Wallet Nano S.
However, every token cannot be stored inside a hardware wallet. If your tokens aren’t compatible to be stored inside a hardware wallet, you’ll have to put them in an online wallet. Your online wallet is controlled with a private key, which isn’t shared with anyone.
To avoid being victimized by a crypto scam that’s masking as an airdrop, we’ve listed some general rules.
- Never share your private keys.
- Your wallet should have a two-factor authenticator.
- Always be careful while downloading the wallets of the smaller projects.
- Never click on any link that’s redirecting to a wallet.
- Don’t give your primary email address while applying for an airdrop.
- Don’t ever reuse the same password for two websites.
- Don’t ever send any payment to receive the free tokens.
Staying absolutely safe in the world of the airdropped token
Often, you’ll see a currency organizer asking for your private key in order to send you some airdropped tokens. However, never ever share your private key with anyone. If the airdrop is legitimate, it won’t ever request you to supply such critical data to recevie your free rewards—it’s as simple as that.
The ICO space, by and large, remains unregulated—that’s exactly why you shouldn’t allow any scammer to get the better of you anytime, anywhere. These scammers usually lie in ambush waiting for an airdrop to happen. As soon as there’s an airdrop, they may try to generate fake “phishing” sites and portals; these portals or sites are engineered to take away your crypto keys.
So, you should hammer home this message—never give private keys to any company that’s airdropping free tokens.
Of course, just because an upcoming airdrop is legal, it doesn’t mean you’ll end up making a lot of money from it. Most of the airdrops in the crypto landscape are done whenever an ICO needs a power-packed launch. Plus, sometimes, airdrops may even happen whenever there’s a solid possibility that the token’s value won’t be high. However, in the end, you will never be sure about an ICO’s true value until you have read its project’s white paper and reviewed the website.
It is always best to go through the project’s white paper or its website before making the final decision. You should even read about the project’s development team and analyze its social media pages. You need to see whether the team that’s organizing the airdrop is actually interacting with its community or answering their questions. If they’re interacting with their and answering every single question, then the development teams will probably be legitimate.
In addition, a good airdrop will be the one that will need some of your details as part of the KYC process; once you give the information, you’ll receive the free tokens.
Finally, if an airdrop is actually completely legal, it may also have been mentioned on the crypto news outlets. So you need to bookmark some quality crypto news sources that are constantly being updated.
Earning respect from fellow crypto investors by alerting them to scams
We always strive to not list any scam ICO projects. Our team does thorough research before listing any ICO project (such as Giftcoin, Rate Date, EtherJack, Global Spy, Darico, Bountie, Fintechbit) on the website. Nevertheless, it’s still possible for us to miss a scam project. So as a crypto investor, you should always look out for a scam. If and when you find one, you should notify us. That way, you help us keep the site clean and warn other crypto investors about fraudulent ICO projects.
Summing up airdropped tokens
Before taking part in any new airdrop out there, it’s essential that you research the project and believe in its vision from the beginning. You should even analyze the technology and the concept backing the project, and then only decide whether it makes sense to participate in the airdrop.
You should also keep track of all scams and always remember that a completely legit project will have no business in knowing your private details. All in all, airdrops will remain a super-exciting way to learn a bit more about the project and even its development team. Remember that airdrops won’t ever need your money, but it’ll definitely want your time and patience. Finding the right airdrop is often easier said than done. So, as an investor, you have to be smart enough to know everything about every project you’re involved in. Plus, it’s better to go the extra mile in order to keep your entire data safe.
Last but not least, we remind you to never give your private keys to anyone who claims to want to deliver free airdropped tokens to your wallet.