What is an airdrop and how does it work?

In a nutshell, an airdrop is a giveaway of coins or tokens to wallet addresses with a goal to promote awareness of a cryptocurrency or blockchain project. In return, users need to perform a (usually) small action such as retweeting a post, writing or translating content, inviting friends to join the airdrop, etc.

Why should you organize a crypto airdrop?

The primary reason for organizing a crypto airdrop is to promote a blockchain startup, project or service. By issuing tokens to users, the team can bootstrap its project and ensure a fair distribution of tokens among its community from day one.

What is a Token airdrop?

Token airdrop: A crypto platform, such as a decentralized exchange (DEX), decides to create a native token. To reward its current user base, the project sends half of the total token supply to users’ wallets based on the volume each user has traded on the platform.

What is a bounty crypto airdrop?

Bounty crypto airdrops occur when users perform certain tasks. These tasks often entail raising awareness of a project by posting on social media and tagging the company or retweeting a recent tweet about the project.