If you are an active enthusiast in NFT Space you may already have heard about Airdrops. NFT airdrops concept came as a way to bootstrap the formation of new communities. This formation is based on shared ideals, thoughts, and beliefs. You can consider them, as to how individuals come together to form a private club of sorts.
But what exactly is an airdrop in NFT Space?
What is Airdrop?
An airdrop is simply a distribution of NFTs, cryptocurrency, or tokens that are sent to a web3 wallet address for free as a promotion, as added value for participating in an experience, or even for purchasing a digital asset. Airdrops are typically used to add more value or to draw attention to a brand or experience.
It is an explicit relationship between the creators of the NFT project and the community. This means, collaborating with each other. Everyone gets aligned on the point that the NFT project must be successful and make a mark in the market. This is in exchange for becoming early allies or for contributing to the project. Hence, Airdrops illustrate an effective way to reward allies.
Let’s observe different types of Airdrops to understand the working of Airdrops in today’s Web3 Space.
#1 Standard airdrop
A standard airdrop is when a specific amount of cryptocurrency is dispatched to you in return for meeting a simple task such as sharing a social media post, joining a whitelist, or providing your email address to sign up for a newsletter or other email services.
Standard airdrops do not demand you to pay anything in order to acquire the airdrop. It is just a task that you complete and in return, you are rewarded with the airdrop. The cryptocurrency is usually a unique and unknown currency and may not be as valuable as some of the well-known cryptocurrencies like Bitcoin and Ethereum.
Think of a standard airdrop as a real-life coupon. For instance, say a new restaurant opens up in your town. For the first week, they deliver free appetizers if you choose to check out the restaurant. The restaurant is delivering their customers with added value in the form of a free appetizer, while at the same time they are luring in more attention and customers. It’s a win-win situation, to be honest!
#2 Exclusive airdrop
Exclusive airdrops are allocated to loyal holders or users of a cryptocurrency or blockchain-based community. An exclusive airdrop is practically a reward for being a loyal user. It is generally scattered with no strings attached other than being loyal.
We resemble exclusive airdrops to being a member at a grocery store and receiving gas rewards for shopping at the store. You are cited for your continued support, and the grocery store acquires a loyal customer and delivers additional value through the gas rewards.
#3 NFT airdrop
An NFT airdrop can be prompted for several reasons. You may obtain an NFT airdrop for holding a particular NFT in your wallet, advertising a brand in some way, partaking in a giveaway, or even as a gift which is more a marketing strategy instead of a gift.
Just to be honest, NFT airdrops can be incredibly valuable. A good benchmark of a valuable NFT airdrop is the Bored Ape Mutant Serum. Holders of Bored Ape Yacht Club NFTs were airdropped variations of what’s understood as the Mutant Serum NFT.
Even though these Mutant Serums were airdropped for free to holders, it didn’t take long for them to start selling for over 3 ETH i.e thousands of dollars on secondary NFT marketplaces. In fact, on January 2, 2022, a Mega Mutant Serum was sold for 1,542.069 ETH ($5,907,542.97).
That being told, not all NFT airdrops are valuable and useful. Some may be completely worthless, and some may actually be scams. If you ever receive an accidental NFT in your wallet without your knowledge from an unknown source, you should be extremely careful in how you handle the asset and try to avoid selling it or dealing with it in any way.
#4 Hardfork airdrop
A hardfork airdrop happens when there is a permanent split or new version of a blockchain that is released. This creates the need for a new token to go with it.
In general, the older version of the previous blockchain will always exist along with your old tokens, but the new tokens will also be airdropped to you in an equal amount to what you presently hold in the old token.
NFT Airdrops have evolved as a feasible mechanism to incentivize community members. They can be an excellent way to earn some additional income, utility, and assets without having to do largely in return.
This is evident from the fact that we are seeing a lot of awareness for NFT projects who operate for the long term. Also, based on a starry vision and implementation ability. Learning and education around this market will go a long way in helping you gain a foothold in the NFT market and Web3 Space.
How To Receive An Airdrop?
In general, to receive an airdrop, you need to hold a minimum quantity of a certain asset such as an NFT or must have used a particular service that authorizes you to receive an airdrop such as transacting on a marketplace. Also, you will require a web3 wallet to acquire your airdropped asset.
Why are Airdrops so important?
Airdrops are important because they act as a promotional tool for brands, authorize brands to continue to provide additional worth and utility to their holders, and also enable blockchains to start new projects without compromising the trust and relationship of their users.
Are Airdrops safe?
In general, airdrops are believed to be a safe and effective way to market your brand and build community. However, it will be difficult to say that they don’t come with some risks, because these days there are a number of scams in the web3 space, and any airdrop should be approached with proper alertness and thoughtfulness.
How to verify that the airdrop is authentic and not a scam?
If you find yourself in a position where you are questioning the legitimacy of an airdrop or are willing to know its authenticity, then make sure you take your time to conduct thorough research and use resources such as Twitter to ask the community about the authenticity of a particular airdrop.
What are some signs of an Airdrop being a Scam?
Potential signs that an airdrop may be a scam:
* Asking you to pay a small amount to get your airdrop
* Requesting any private data such as secret phrases and passwords
* Proposing to help you through screen sharing
* A new or copied NFT or crypto airdrop that’s unverified
* Provides links that direct you to a phishing site that makes you sign in using your wallet
* If it’s extremely good, then it’s likely a scam
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NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.
Conduct thorough research before you start with NFT trading.