👉🏼 The crypto trend for this new year is the airdrops 🪙
If you are a new Web3 explorer I am sure you are curious about the airdrops. There is a lot of hype around some projects in crypto communities and not knowing it can easily throw you into FOMO.
Keeping it in mind, I decided to jot down the basics so that you know what the hype is about. I will also share a few things that led me to participate in an airdrop for the first time. 🙌🏻
Before we jump right in, do you feel like you’ve heard this term before? 🤔
Other than crypto, “airdrop” is a term you might have heard in other contexts like:
✈️ In the military, airdrop means dropping supplies from aircraft through parachutes. It became common during the WWII.
🍎 If you are an Apple user, you must know that airdrop is a way to transfer data between physically near Apple devices.
Simply put
In crypto, airdrop is a free token distribution to achieve specific goals. 💰
For instance,
- Airdrops are marketing tactics to raise awareness about a project.
- A way to reward the early users of a protocol.
- To increase adoption and ownership through greater distribution.
These days, airdrops are one of the popular ways for projects that are launching a token, a new update, or a new product.
If you are seeking to start investing in crypto, you may start small. So, airdrops are also a good option for enthusiasts like you. It is a way to know about your investment options, ways to invest, and the right projects.
Where to look for airdrops? 🧐
If you actively participate in crypto communities, you will know the vibes. There are announcements and people frequently talk about the upcoming airdrops. Communities on Discord, Telegram, and X (formerly Twitter) keep the members updated on the airdrops.
Some people write step-by-step guidelines on how to participate. They even create and share strategies to efficiently invest your money.
Who is eligible for the airdrops? 🤝🏼
There is no barrier to entry and anyone can participate in the airdrops after following the required steps. Each project has unique requirements depending on the purpose they are airdropping for.
For instance, if the purpose is to market the project, they will ask you to perform a certain task and share it on your social media.
Why airdrops? 👀
🔹️Web3 communities opt for distributing governance rights through airdrops for more decentralized control.
🔹️Companies tend to strengthen bonds with the product users. As a user of a DeFi product, you may be incentivized for simply using it or it may be because you have been an early user of the product.
🔹️To bring investors to a project, the creators may use an airdrop strategy to increase investment opportunities by marketing it extensively.
🔹️Airdrops are also meant to increase community engagement and loyalty.
The Injective Airdrop
A few weeks ago I came across this airdrop by Injective on Twitter.
What is Injective?
Injective is a Cosmos-based blockchain that combines AI and Web3. They claim that dApps built on Injective can use AI to help users optimize their decisions and improve efficiency. They also claim to be the first blockchain project offering smart contracts that execute automatically.
Learn more about the Injective Protocol here.
The native token of the Injective blockchain is INJ. According to DeFiLlama, the TVL of INJ is $18.17M with a trading volume of $9.29M (as of today). The hike in the token price could be due to:
- Their narrative around using AI to increase market efficiency.
- The airdrops are confirmed by projects like Black Panther and Talis Protocol which are built on top of the Injective blockchain.
The Strategies 🧠
The airdrop strategy for different projects is different. In the Injective’s case, there are several ways you can become eligible for an airdrop. There are two Injective airdrops I participated in:
- The standard airdrop
The eligibility criteria is to only provide a valid wallet address. - Holder airdrop
Stake INJ tokens in projects built on top of the Injective blockchain.
Check these out here!
Other types of airdrops:
- Bounty airdrops
Require you to perform certain tasks to promote the project. - Exclusive airdrops
These projects have specific criteria for selecting eligible wallets. - Raffle airdrops
There is a random selection of wallets from many interested people.
⚠️ Caution ⚠️
Before choosing a project to invest in, one should do a thorough research. Crypto is full of scams so airdrops could be potential scams or market-manipulating like pump and dump tactics too.👽
This news is republished from another source. You can check the original article here
