The term airdrop is becoming more popular by the day. This is a result of a new feature in the Telegram app that allows blockchain developers to create mini apps, called bots, on the social media platform. Then provide users with airdrops for carrying out activities on the app.
1. What's Airdrop in crypto
Cryptocurrency airdrops are the allocation of a specific supply of a project token to a community of users who were involved in carrying out tasks requested by the project. It is part of a project's Token Generation Event (TGE) that involves providing a portion or all the tokens to a community of users.Â
These drops may serve as a marketing medium to reach people who will be involved in the project. It is used to get potential customers or users on the main business activities of the program.Â
The new waves of Airdrops are from Telegram. With the creation of mini-apps and the collaboration with The Open Network (TON), mini-apps have been formed by crypto enthusiasts and developers. Various tap-to-earn games have been created to provide airdrop to players and start a sustainable business.
An example is Notcoin. This happens to be the first mini-app to introduce a tap-to-earn game before other projects spring out. Airdrops were provided to players referred to as community during the TGE. The community were encouraged to stake their Token to provide them with the privilege of continuous earning after the listing of the coin to various centralized exchanges.Â
Therefore, the earlier tap-to-earn game was used as a marketing campaign to attract users that will begin the next phase of the project.Â
2. Types of Airdrops
Below we discussed the types of Airdrops that can be distributed by a project.
2.1 Standard Airdrop
These are drops that are based on a blockchain platform. The airdrops are provided only to those who own a particular type of crypto asset. For example, if a project plans to launch on the Solana blockchain, it will provide the drops to only individuals who have Solana coins.
2.2 Bounty Airdrop
They are given to individuals in a community for completing a set of tasks requested in the project. This might be as simple as sharing the project content on social media channels and/or inviting friends to it. Telegram games can be referred to as bounty airdrops. This is because users are expected to carry out tasks to participate in the drops.Â
2.3 Exclusive Airdrop
Airdrops are exclusive if they are made available to a group of people. This implies that the project decides that only individuals who belong to a particular group or community will benefit from it. For example, a project team may create tokens for individuals on Twitter.
2.4 Holder Airdrop
These arise when the coins are given to individuals who hold specific crypto assets. For example, Airdrop distribution of a particular meme coin may be provided only to those who have TON coins in their wallet.
3. Advantages of Crypto Airdrop
- It can serve as a source of income.
- Used as a means to onboard users to a project for sustainable growth.Â
- Long-term holders of the coin may have the opportunity to make more gains as a result of an increase in the price of the coin after listing.
4. Disadvantages of Crypto Airdrops
- Risk of scam from individuals with bad intention
- Risks of phishing and viruses from bad actors
- Some projects may require a gas fee which may not be available to many users that received the airdrop.Â
- In some countries, there might be tax implications for individuals who are involved in such programs.
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