yptocurrency airdrops provide free token incentives and have become an attractive wealth creation strategy. However, risks such as higher selling, fraud and unclear qualifications may hamper earnings. Success requires proactive exploration, strategic ecosystem participation and realistic expectations of uncertain expenditure.
Cryptocurrency airdrop has attracted much attention as a risk-free, simple and attractive wealth creation mechanism. This view has received widespread attention in the cryptocurrency community, especially after the huge success of Arbitrum airdrops, which has boosted confidence in the profitability of these events. Cryptocurrency airdrops have been described by some as a key part of the industry, and their growing importance has several implications and reasons. As an effective marketing and user acquisition strategy, blockchain projects use cryptocurrency airdrops to distribute free tokens between their communities. Such airdrops serve a variety of purposes, such as rewarding early supporters, attracting new users and stimulating enthusiasm for the project. Rumored airdrops for Polygon's zkEVM, a zero-knowledge ethersquare virtual machine (EVM), validate this trend. Polygon founder Sandeep Nailwal hinted at the incident in May and sparked a great deal of interest and hype about the project. There are rumors that zkSync (a separate project) may also see some of its native tokens distributed in this way. In addition, with rumors about the possibility of MetaMask tokens, airdrop hunters are also hopeful about airdrops on encrypted wallet platforms. Before delving into the details of these potential cryptocurrency airdrops, this article will first explain what airdrops are, then clarify the potential risks associated with them, and finally provide advice on how to be fully prepared for such events. Advertising
rdrop refers to the distribution of free tokens or coins to multiple wallet addresses. This marketing strategy has a variety of purposes, such as acquiring users, rewarding early adopters, motivating specific actions, joining social media channels, or actively participating in the project ecosystem. Meeting the prerequisites set by the project is essential for airdrop participants. After meeting these requirements, the selected participants will receive free tokens or coins directly in their wallets. They can then hold them as long-term investments, use them in the project ecosystem, or sell or trade them on cryptocurrency exchanges. The success of cryptocurrency airdrops depends on the careful selection of eligibility criteria and incentives. These parameters can be as simple as owning a specific token or like more complex tasks, such as certain chain behaviors. However, they should be consistent with the objectives of airdrops. For example, if the goal is to reward loyal users, eligibility criteria may include users who hold specific tokens for a specific period of time. Or, if the goal is to promote the new protocol, the standard can be related to interacting with it. Incentives can take many forms-from direct tokens to exclusive use of new features or services. It is essential to strike a balance between the attractiveness of user participation and the economic viability of the project. Timing is critical to the success of cryptocurrency airdrops. Starting airdrops prematurely during the project lifecycle may cause tokens to be distributed among uninterested users. Later airdrops may not generate the expected excitement, or they may waste resources with little effect. Ideally, the airdrop should be carried out at the same time as the token release of the project to facilitate initial allocation and liquidity. As Yukun Liu and Aleh Tsyvinski emphasized in their study market dynamics have a significant impact on token prices.
Explore the past: major cryptocurrency airdrops
Arbitration airdrop
On March 23, the Arbitrum Foundation released 1.162 billion ARB tokens to 600000 wallets, marking a milestone in the history of cryptocurrency airdrops. Each wallet has 625 to 10000 tokens, 75 per cent of which were collected in the first three days. At the close of the day of airdrop, the price of ARB tokens was $1.379 each, with an assigned value of about $1.6 billion. Eligibility for airdrops depends on the points system, focusing on activities within the Foundation's platforms Arbitrum One and Arbitrum Nova. Users can earn up to 15 points for a variety of eligible behaviors, such as bridging funds to Arbitrum One or Nova, trading within a specific period of time, or interacting with a certain number of smart contracts. Participants who met the minimum requirements received approximately 850 USDT of ARB tokens. However, those who positioned at the top received a staggering 14000 USDT worth of ARB tokens. It is worth noting that these figures depend on fluctuations in token valuations.
Surprise of the Aptos Foundation
In another example of how to launch an airdrop, in October 2022, the Aptos Foundation conducted an unannounced airdrop of cryptocurrency to reward early network participants for allocating 20.1 million APT tokens. According to the APT market price at the time, this is equivalent to a huge value of $200 million to $260 million. 110,235 crypto wallets are open on Aptos, and users who have either applied for the Aptos Incentive Testnet or cast Aptos Zero NFT on the Testnet are eligible for rewards. Regardless of the common practice of excluding Sybil attackers, the Aptos team did not implement any such mechanism. The average user gets close to $1000.
Optimists double airdrop
Optimism is a layer 2 blockchain solution focused on Taifang with a history of rewarding users through cryptocurrency airdrops. The first was in May 2022, when $200 million of OP tokens were distributed to 248,699 eligible addresses. Each address receives OP tokens ranging from $409.42 to $27,534.98, providing generous rewards for active users of Optimism and L1 Ethereum. Some participants received tokens worth up to $20,000 on the day of the event. On January 20, Optimism launched its second airdrop, handing out nearly $12 million of OP tokens to 307965 encrypted wallets. This airdrop is aimed at those who delegate OP tokens and users who spend a lot of money on Gas fees, whose eligibility and final multiplier are determined by a variety of additional attributes related to governance and protocol use. The return of the second wave, however, is more modest. Eligible users receive an average of about 39 tokens, which is equivalent to less than $100 when airdropped.
Understanding risks and challenges
Although the airdrop of cryptocurrency provides a profitable opportunity to accumulate tokens, it also brings a series of challenges and risks. The seriousness of these problems varies, but their effects may seriously impair the integrity of the allocated tokens and the security of the recipient's wallet. Sybil attacks pose a major threat to the fair distribution of airdropped tokens. In these fraudulent attacks, malicious actors create multiple identities to claim undeserved token shares. Witch attacks are usually internal, or at least require internal information, because almost all airdrops are kept secret until snapshots are taken. The strategy depends on the project's inadequate ability to detect and filter fraudulent accounts, causing criminals to extract tens of thousands to hundreds of thousands of dollars from each airdrop. The best defenses against such improper means include the implementation of pre-user whitelists, the strengthening of barriers to entry and the use of Sybil attack detection mechanisms. The concept of cryptocurrency airdrops usually revolves around the temptation of "free money", but this attractiveness can cause problems. The widespread risk stems from a push-up selling plan, in which token creators use hype to push up the price of tokens. Once tokens are traded, the creators will sell a large number of tokens, causing prices to collapse. Recipients of such airdrops often find the value of their tokens significantly reduced or non-existent. Unfortunately, fraudulent airdrops and dust attacks are also prominent in the field of cryptocurrency airdrops. Fraudsters often plunder funds by asking for personal information or private keys of their wallets under the guise of participating in airdrops. Dust attacks, on the other hand, involve fraudsters depositing a small amount of cryptocurrency in unsuspecting user wallets. They then track transactions in distributed tokens, making wallet holders anonymized, which can be an invasion of privacy. Before participating in the airdrop of cryptocurrency, the project should be carefully studied to ensure that it comes from a reliable source. In addition, vigilance against requests for sensitive information also helps to prevent such fraud. Airdrops of cryptocurrencies, especially in the past two years, have also found themselves caught in a complex regulatory network. The SEC has been keeping a close eye on such token allocations that claim to reward participants with future profits, which could pose legal risks to companies that issue airdrops. This is because profit expectations are required by the US government's definition of security, the Howie test. In addition, given that most important blockchain networks are publicly operated, privacy issues may surface, potentially revealing sensitive data about airdrop receivers.
How to prepare a cryptocurrency airdrop: a general guide
The first step in preparing a cryptocurrency airdrop is to have a cryptocurrency wallet. Without a valid wallet address, it is impossible to receive or receive airdrops. The use of trading addresses seems attractive because of their convenience; however, exchange wallets are not a good choice for airdrops, as addresses can change from time to time, and exchanges are not a safe place to store cryptocurrencies. Airdrops typically require potential recipients to perform certain tasks, from following social media accounts to forwarding posts with specific topic tags, using specific encryption platforms or wallets for transactions, or creating accounts to receive project updates. Simple as these tasks may seem, any decent return on cryptocurrency airdrops is far from guaranteed. Announced airdrops usually do not involve handing out large amounts of tokens to many wallets, or they may be carried out in a lottery to reduce the chances of winning. However, in some cases, encrypted airdrops can be distributed without the need for the user to perform any other tasks. These examples show the situations in which the benefits are most likely to be achieved.
Airdrop hunting: reconnaissance and participation
To increase your chances of getting free tokens, users should actively look for potential airdrops and keep a close eye on famous projects that hint at future tokens. Typically, these projects reserve about 5% to 10% of the token supply for early users during the token generation activity. Online resources such as dedicated cryptocurrency airdrop sites, social media groups and forums play a valuable role in this regard. Well-known platforms such as DeFi Airdrops on Twitter and airdrop pages of DeFi Llama have always emphasized the possibility of organizing non-token projects in the future. At the same time, users can actively participate in projects that do not have tokens on the main block chain, such as Tai Fong, to improve their chances of getting airdrops. Non-token applications in areas such as DeFi, NFT and GameFi are also likely to launch airdrops in the future. For example, adding tokens to the liquidity pool of a new loan agreement on Ethernet Square might qualify users for airdrops. Although most airdrops in history have taken place in Ethernet Square, exploring other ecosystems and technologies will only increase payment opportunities in the future. Users must remember that being an early adopter of the new protocol is just a starting point-just a few transactions may not be enough to get airdrops. As airdrop eligibility criteria tighten over time, active participation in the platform is the best proven strategy. Interacting with the NFT space can also increase users' chances of qualifying for cryptocurrency airdrops. Owning NFT or becoming part of a strong NFT community may qualify users for new airdrops in the form of governance tokens or new NFT. Preparing for airdrops requires not only waiting for windfalls; you also need to wait for airdrops. It involves active participation, strategic participation and vigilant reconnaissance. In recent months, the pattern of airdrop of cryptocurrency has changed a lot. Successful airdrop recipients from projects such as Uniswap, the Ethernet Square name service and dYdX can attest to this, with only one or two Ethernet Fong deals. However, cases involving allegations of insider trading, such as the Divergence Ventures incident in 2021, have led to a tightening of eligibility criteria for airdrops, suggesting that competition in the airdrop sector is becoming fiercer. Verify yourself with tools such as Gitcoin Passport, a system that ensures that human nature proves and curbs robot activity, and can tilt the balance in favor of airdrop seekers. The tool distinguishes between genuine wallets and Sybil wallets and adds an extra layer of security.
Rumored airdrop: zkEVM, zkSync, MetaMask
ZkEVM
Polygon zkEVM is a well-known zero-knowledge extension solution that has recently attracted wide attention from followers of cryptocurrency airdrops. Polygon zkEVM's FAQ indicates that they want to use MATIC for pledge and governance in the future. In May, Polygon founder Sandeep Nailwal strongly hinted at possible airdrops on Twitter, suggesting that MATIC might be delivered to early Polygon zkEVM users. TVL on Polygon zkEVM has grown by more than $30 million since Nailwal tweeted, reaching $33.1 million in the past two months. Although the community is still speculating about whether new tokens will be introduced, the prospect of double bounty exists. To improve your chances of profiting from potential zkEVM cryptocurrency airdrops, early participation in the platform is key. You can take the following steps to increase your opportunities:
- Visit the Polygon zkEVM home page two。 Add a zkEVM network to your wallet
- After obtaining the ETH for the transaction, use their bridge to transfer it from the Ethernet Fong network to zkEVM
- Explore their ecosystems and use available dApp
- Expand to other dApp to further increase potential airdrop opportunities Note that these actions (and all the others in this article) do not necessarily win you an airdrop. In addition, you should conduct your own research and, if necessary, first seek the advice of a trusted financial adviser.
zkSync
zkSync is a zero-knowledge aggregation solution designed to enhance Ethereum's trading capabilities by providing scalable and affordable options. With zkSync Era mainnet Alpha now open to the public, there is even more anticipation for the release of native tokens. When these tokens are introduced, a portion may be distributed via airdrops. For those who follow zkSync airdrops, the following steps can improve eligibility:
- Integrate the zkSync Era Alpha main network into your MetaMask or other wallet two。 Actively participate in zkSync Lite and zkSync Era Mainnet Alpha
- Start the task through zkSync's Crew3 platform
- Participate in various elements of the zkSync ecosystem, such as Orbiter Finance or ZigZag The last step is particularly important because some zkSync dApp may not have introduced their tokens, which may provide an opportunity for double cryptocurrency airdrops.
MetaMask
MetaMask has become the wallet of choice for Ethernet Square and other Ethernet Square compatible block chains, and the number of users will reach 30 million by 2022. Although the project does not yet have its own tokens, unlike other major cryptocurrency participants, there are signs that tokens may be imminent. The encryption community has been speculating about the possibility of MetaMask airdrops for years, but there is no guarantee yet. On March 16, 2022, MetaMask announced plans to launch its own token, MASK. Although the details are not clear, if an MetaMask airdrop occurs, some preparatory steps may increase the likelihood of receiving tokens:
- Set up MetaMask wallet and initiate ethernet square transfer two。 Actively use MetaMask wallet for dApp interaction
- Take advantage of MetaMask's built-in token exchange function Additional hint: in terms of gas fees, one of the cheapest exchanges you can do is between Ethernet Fong and packaged Ethernet Fong, using MetaMask's bridging service to facilitate token transfer across different block chains
Cryptocurrency airdrop: what to remember
While the potential return of cryptocurrency airdrops may seem attractive, there are some important factors to keep in mind: Cryptocurrency airdrops often have uncertain eligibility criteria that may even prevent some active users from receiving tokens. Promised airdrops also often prove speculative and never materialize. It is wise to calculate the value of airdropped tokens based on the cost of collecting airdropped tokens and the time required to participate in eligibility attempts. Some tokens end up with little or no market value, so they are not worth claiming. In the case of errors or malicious code, it can also be dangerous to use unaudited smart contracts for small (or large) projects to complete potential eligibility contracts. Airdrops of cryptocurrencies that track down every rumor can lead to disappointment, because not all rumors lead to actual airdrops. Tokens given away without eligibility criteria tend to be of negligible value. While it takes effort to find cryptocurrency airdrops, those who are willing to actively explore cryptocurrency ecosystems and experiments may be rewarded handsomely. With proper expectations and evaluation, airdrops can be an exciting way to expand your cryptocurrency portfolio.