• Airdrops attract with free coins
• Qualification based on specific criteria
• Warning of possible fraud
Get free cryptocurrencies through airdrops
It sounds almost too good to be true: crypto fans get free coins without having to do much. This is made possible by so-called airdrops. According to “CoinDesk”, this means that the developers of new blockchain projects send units of their cryptocurrencies to users who can often be found on corresponding platforms – and without having received anything in return from them. Instead, airdrops are to be understood as a marketing measure intended to bring new users to the coin, which is often not yet established, and thus establish it in the competitive crypto market. Investors who enjoy the free coins usually also have a great interest in the new cryptocurrency catching on and increasing in price – and could then advertise for it. According to the portal, this is comparable to promotional vouchers that end up in the mailbox and are intended to encourage purchases. “Airdrops can be viewed as a customer acquisition cost,” Alex Gedevani of analytics firm Delphi Digital told tech blog CNET.
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This is how the coins can be redeemed
Often the free tokens are sent to crypto users’ wallets without them having to do anything. For example, CoinDesk reports on campaigns in which all users of a wallet were able to enjoy the airdrop that contained at least 0.01 Ether. However, sometimes minor tasks need to be completed before claiming the coins, CoinDesk continues. This may include following the developer’s account on social networks, sharing an entry there, making a transaction on a specific platform or creating an account there.
NFT transactions qualify for OpenDAO tokens
Towards the end of 2021, for example, the crypto project OpenDAO made a name for itself with an airdrop, as CNET writes. All users who have previously bought or sold collectibles via the NFT platform OpenSea should redeem tokens of the cryptocurrency, which runs under the ticker SOS, at Christmas. How many tokens participants of the action received depended heavily on how much money they already left on the marketplace. In the case of one user CNET spoke to, the redeemed value was $2,000. Other crypto fans are reporting a $140,000 SOS package. The coins have now arrived at more than 300,000 wallets. The NFT platform operator Looks Rare also recently launched a similar Airdop campaign.
Warning against repurchase
The receipt of free coins can also be subject to other conditions. According to CoinDesk, units of the token GAS were recently given away. In a nod to the unit of computational effort on the Ethereum blockchain, also known as “gas,” users who paid at least $1,559 in such transaction fees received the airdrop. According to the portal, more than 57,000 addresses are said to have received the coins and thus also voting rights on the Gas DAO network, which defines itself as the “voice of active users” of the Ethereum network.
Although actions of this kind may tempt you to buy more coins at the entry price, “CNBC” warns against overly fast transactions. The prices of OpenDAO and GAS DAO have fallen again after a steep increase, which was triggered by the free actions. In the worst case, the digital currencies can become worthless. The TV broadcaster therefore advises airdrop recipients to wait and see. “While some were enthusiastic about the release of the tokens, others expressed concern, saying that the projects behind the tokens lacked product development and utility, and had security risks,” explains CNBC’s Taylor Locke. “That’s not unusual.”
How to qualify for airdrops
And even if you haven’t been eligible for these promotions before, you can still qualify for future airdrops. Although the requirements to get free coins differ, according to CoinDesk these are usually easy to find on the project pages. However, some providers only communicate the requirements at the beginning of the campaign and then only pay out the coins to users who have already fulfilled them beforehand. However, the portal advises looking for special overview pages for airdrops, following the hashtag “#airdrop” in social networks or reading along in special crypto forums. It could also be worthwhile to be registered with different trading platforms for cryptocurrencies in order to qualify for as many such offers as possible. Trading providers such as CoinMarketCap clearly summarize current and upcoming airdrop campaigns on their website. Free events also take place on the platforms Coinbase and Binance.
In all cases, however, it is essential to have a wallet with credit.
Possible risks of fraud with free promotions
Nevertheless, crypto fans should not be tempted by the free offers without hesitation. According to CoinDesk, there are numerous reputable providers who do not require users to make a transaction in order to redeem coins, but there are still black sheep in this area. Specifically, pump-and-dump schemes are mentioned here, in which the developers place the coin on crypto exchanges and then sell a large part of their own stocks after a strong price development in order to drop the price. With free offers, the makers behind the cryptocurrencies can also want to get the wallet data of the users. After the user transfers the currency to their wallet, the attacker can de-anonymize the owner of the virtual wallet, the portal warns. “If tokens end up in your wallet from an airdrop you didn’t initiate, it’s best to wait before doing anything. Some airdrops may require you to visit a website to sell or trade the tokens, but there is a possibility that this is a phishing attempt to access your wallet and money,” CNBC said. “Always question any form of free money you receive in the form of cryptocurrencies,” Gedevani told CNET. “Airdrops coming from publicly facing teams can easily be identified as legitimate, but there have been a handful of cases in the past involving malicious intent, mostly from unknown sources, that have resulted in the loss of user funds.”
In addition, caution is also required with serious offers: Although the coins are sent without a return payment, depending on where you live and the legal regulations there, according to CoinDesk, taxes can still be incurred on the free coins – even if you didn’t want the airdrop in the first place.
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