Crypto projects often hold Airdrop promotions to give away their own tokens. What to pay attention to when choosing a project in which you want to participate.
Free token distribution or AirDrop – is one of options to get initial capital in cryptocurrency. But it can hardly be considered a stable way to earn money. In fact, no one guarantees that received free tokens will bring profit.
Most of free coins from new Airdrop projects can only be profitable in the short term. Free coins from famous projects can be used in a long term perspective. However, experience with Airdrop can be a source of insight into how cryptocurrency markets work.
What is AirDrop
AirDrop is a promotion for giving away coins for free after completing necessary conditions. A crypto project holds AirDrop cryptocurrencies to raise awareness and attract new potential investors. Most Airdrop launches are new startups or large companies that promote their new products.
Cryptocurrency is credited directly to users’ wallets if they meet certain conditions. Conditions can be different, such as registration, subscription, recruiting friends, and other simple tasks.
Why crypto projects hold Airdrop
Basically, AirDrop is conducted as a marketing campaign to attract attention to the project. Cryptoprojects use giveaways as a way to increase the number of holders.
Another option for AirDrop is to give away control tokens. In addition to their monetary value, these coins give their owners a say in decisions regarding the project. The project community makes decisions by voting. And the number of votes is proportional to the number of shares each token holder has.
How not to fall victim to scammers
A distinctive feature of AirDrop is that the distribution of coins is free. If the developers of a project make participation a condition of any financial investment. Then such an offer can be a scam. Participating in a giveaway may only require a financial investment if it is a DeFi project. Which work on such a blockchain, where you have to pay a commission to a network for transactions itself.
Scammers may ask you to pay a fee to “unlock” free coins you receive. Or make them buy a small number of these tokens first. In order to get more of them in next Airdrop giveaway.
Sometimes the user is asked for credentials to log in to a scam site when registering for a program. Or cryptocurrency keys or other personal data. Having received such information, scammers immediately use it to steal funds. Using this scheme, scammers use many different excuses to obtain confidential information.
Another variant of scam is requests to download “special” software. Or providing links that, when clicked, install malware. Most often such messages come after registering on fake sites of famous projects announcing AirDrop.
Scammers also use coins with names similar to famous tokens. In such cases, user receives a large number of coins to their wallet. In fact, it turns out that in order to get these coins you need to go to a scam site and connect your wallet. But you can’t do that because as soon as you connect your wallet you lose all your money.
If a crypto project offers you a very large amount of money for doing simple tasks. Then you should also be suspicious about such a project. In any case, having decided to participate in AirDrop. You need to carefully check all information about crypto project and conditions of participation in giveaway.
Where to find information about actual AirDrop
A lot of information and advertising channels in messengers and social networks publish announcements about free token giveaways. However, it is not always possible to trust such sources of information.
The best way to learn about AirDrop may be to visit the official websites of famous cryptoprojects. Or their verified social media accounts. Our Crypto-Upvotes experts recommend you to be careful and always study projects before deciding to participate in Airdrop.
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