Blockchain, Cryptocurrency, MetaMine

What Is a Crypto Airdrop and How to avoid airdrop scams?

Crypto Airdrop

Crypto airdrop is a marketing strategy adopted by crypto startups to promote the project and their new token. Airdrops involve blockchain-based projects and developers sending out free tokens to members of their communities as part of a broader marketing initiative.

There are different types of airdrops. Each crypto project can be selected based on its specific needs. But most airdrops have the same goal; Increasing the general awareness and interest of the audience towards the project. In some airdrops, the free project tokens deposits directly into users’ wallets. In others, users may have to submit their request manually to receive the tokens.

Why do crypto airdrops exist?

Crypto Airdrop is a type of marketing strategy. This is done by crypto startups to upgrade the project and release their new currency code. In fact, AirDrop includes the free distribution of a network’s native digital currency among current or potential users. Sometimes users have to do simple promotional activities to get this free tokens; For example, the requirement to receive a crypto game token airdrop can be to follow that platform’s social media account and share posts.

How to avoid airdrop scams?

Anyone with a crypto wallet can request a crypto AirDrop. But you should always beware of scammers. Because there are a lot of fraudulent airdrops that can steal your wallet funds when sending a request or transferring free. Always make sure the project is valid before sending an AirDrop request. Especially if a project asks you to link your wallet to an AirDrop website, you need to be extra careful.

With the growing number of new crypto projects like, metaverse and NFT, it is becoming increasingly difficult for investors and traders of crypto to pursue all new projects. For this reason, some crypto projects use AirDrop token as a means of advertising and information. Although all users love the free tokens, as we said, not all airdrops are legal and you may fall into the trap of fraudsters.

Crypto Airdrop

It can be challenging to tell whether an airdrop is legit or a scam. You should always Do Your Own Research (DYOR) before signing up for any airdrop, especially when you need to connect your wallet to a website.

DYOR aims to reduce the number of uninformed investors in cryptocurrency. It encourages them to research and understand a cryptocurrency before investing so that they can answer precisely why they are buying that currency and supporting that project. Sometimes, scammers will airdrop tokens into several wallets, but when you try to transfer these tokens to a crypto exchange or another wallet, you will have your wallet drained out.

For extra protection, you can set up a new wallet and new email address dedicated to receiving airdrops only.

Bounty crypto airdrop

A bounty airdrop requires users to complete certain tasks, such as sharing a post about the project on Twitter, joining the project’s official Telegram, or creating a post and tagging a few friends on Instagram. To claim a bounty airdrop, you’ll likely be asked to fill out a form with your wallet address and provide proof that you completed the tasks.

However, there are likely more scam airdrops than legitimate ones around, so be careful and make sure to do your own research before participating.