Hunting for crypto airdrop opportunities and cashing in on airdrop rewards can be a thrilling way to bag some extra coins, but beware, not every “drop” is gold.
Cryptocurrency airdrops are a marketing strategy crypto projects use to give away free coins or tokens to certain wallet addresses of active users. Airdrops allow users to expand their crypto portfolio without extra costs and earn money by holding these tokens, hoping their value will increase in the future.
Launching airdrops serves several objectives. Firstly, they help create buzz around a project or cryptocurrency. By giving away free tokens, companies can spread awareness and quickly grow their user bases. Airdrops can also boost liquidity as more users start trading the new tokens. Additionally, companies can reward loyal users and foster community building by encouraging participation and interaction with the project.
Individuals typically participate in certain activities, such as joining a project’s social media account, owning a particular cryptocurrency, or engaging with the project’s community. Airdrops are usually small in value — below $10 — and may lack liquidity. To make easy money, some users join an airdrop and sell off the coins immediately, potentially driving the price down.