Airdrops in Crypto - What are they and how can you benefit?

Published: Jan 06, 2023 Est. read time: 1 minute

What is an airdrop? Simply put it is when a project gives away completely free coins / tokens. You can do whatever you want with received token be it trade them or HODL.

You might be wondering, why would a project give away their coins/tokens for free? Often the primary reason a project would offer an airdrop is to distribute tokens fairly. Instead of a small group of people getting all the tokens through an initial coin offering (ICO), airdrops allow a wider group of people to get a piece of the action. A fairer way of distrubting.

Another reason is to increase awareness of the project and get more people interested in it. By giving away free tokens, the project can attract a large number of new users and get them interested and invested in the project.

There have been some highly profitable airdrops for lucky receivers in the past. One example is the Stellar airdrop that gave away 16 billion XLM tokens (worth about $4 billion at the time) to Bitcoin holders. Another example is the OmiseGo airdrop, which distributed $23 million worth of OMG tokens to Ethereum holders.

When it comes to receiving airdropped tokens, it's important to be safe and set up trustlines with the relevant blockchain project. This means that you are trusting the project to hold and manage your tokens securely.

If you want to stay up-to-date on upcoming airdrops, a good place to start is by following crypto-related accounts on Twitter. You can also check out the third-party website, https://airdrops.io/, which lists current and upcoming airdrops. This website is not affiliated with CryptoHogo at all.

I hope this helps give you a better understanding of airdrops in the crypto world. Happy finding your next air-drop!