What is an Airdrop? And How Does it Work?

Elizabeth Wright
| Editor:
July 2, 2023
1 min read

Airdrops are an incredibly exciting development in the cryptocurrency world, which can be a fun and mutually beneficial way to explore new endeavors. Airdrop refers to give away a certain amount of digital currency, tokens or coins, publicly for free either by merit of holding some other coins or only by merit of remaining an active wallet address on a particular blockchain network. Giving away free coins is a great marketing strategy for a company creating both awareness and excitement about your project at once expanding its users.

Being a fact, new coins with low value can see huge swings based on market sentiments. Gaining sudden popularity among thousands of users excited and promoting it to appear on different platforms. The value increase in the coin alone can easily out with the price of some coins given away for free benefiting mutually. Furthermore, this process can help a company or market expert gather them some valuable information on potential users showing their current social media presence, which is of great value.

Model of Airdrop works on the criteria of eligibility: users must hold a certain amount of virtual currency at the time of snapshot being taken, proving the current scenario of the blockchain network at that particular point of time.

An airdrop shouldn’t be confused with ICOs. Awarding digital assets during an ICO event is mainly purchased using an alternative coin or token. Still, it’s precisely the opposite in case of the airdrop, awarding of tokens or coins is entirely free without any purchases.

Looking forward to having a part in an airdrop, you need to have base tokens. EOS, Ethereum, and Bitcoin are all examples of base tokens. The reason behind this is the majority of the projects built in crypto space are either created on top of or are forked off from those three. For example, the Atomic Wallet Airdrop Campaign, made on the Ethereum chain, is also currently going on. To join it, users need to download the app, get the referral link by verifying the email and share the referral code. Every time when new people sign-up to the airdrop of Atomic through that code, the owners will be getting an extra 5 AWC at the beginning of every month (the distribution will be on after the team complete manual verification of the holder’s account).

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