What is a Crypto Airdrop and how Does it Work?

The crypto airdrop is a practice whereby existing holders of a certain cryptocurrency, such as Bitcoin, receive free tokens as a reward. In layman terms, it is a giveaway that aims to promote a particular blockchain.  It also rewards loyal customers in a bid to ensure they continue to subscribe to a particular blockchain platform.

How it Works

This practice is relatively new in the crypto market. Consequently, concrete rules on the operation are yet to be created. Perhaps they are on the verge of being developed, seeing as the project has gained a lot of popularity. A few crypto websites do display the rules, however with most, one has to contact the developer for additional details.

The team behind a particular event announces a date that it shall undertake the airdrop. Once the predetermined date materializes, the crew operating the airdrop takes a ‘snapshot’ of the blockchain, resulting in holders of the relevant cryptocurrency receives free e-tokens. Most crypto blockchains, especially those in the start-up stage, prefer announcing an airdrop beforehand as opposed to surprise airdrops, all in a bid to bootstrap their projects.

Why Airdrop?

The main reason for this practice is to create awareness, especially for a new virtual currency. The virtual currency world relies heavily on ‘hype’. People are constantly on the lookout for the next exciting thing and as such, free tokens provide an incentive to attract more people to a project. Announcing a forthcoming airdrop creates a much-needed buzz both on social media and in the virtual currency world.

Airdrops also help projects acquire valuable database that is essential when identifying potential customers. Some airdrops require customers to fill in several online forms. For instance, Universa.i o airdrop required potential participants to provide their Facebook list for them to qualify for the airdrop. Customers should always beware of scam sites and ensure they only provide information to official websites. One should also never reveal their personal login information to any airdrop organization.

How to get Information on Airdrops

Numerous websites and online platforms have been created all aiming at informing users on previous, forthcoming and ongoing airdrops. A good case in point is Icodrops and Airdrop alert, both of which even offer relevant advice on upcoming airdrops. Another way to access information on airdrops is by keeping track on the various social media platforms of projects you’re interested in which could be the likes of Reddit and Telegram.

Are There ICO’S?

Basically, an ICO airdrop arises where a company launching the first (initial) coin offering offers some of its coins to those interested in virtual currencies for free as a marketing gimmick. It may at times, however, require participants to complete simple tasks.

The team Behind Airdrop

This is highly dependent on the virtual currency involved. However, there does exist organizations like the Blockchain Education Network that organize airdrop events to create awareness and also introduce new people to digital currencies.


It is a basic requirement that one ought to have the relevant virtual currency such as BTH or ETH in their electronic wallet if they are to successfully participate in an airdrop.


It is often said that in the product promotion world, cognizance marks the inception of a buyer’s journey. According to Psychology experts, you’re more likely to buy something you’ve seen or heard of before as opposed to something you’re unfamiliar with. It is safe to say that airdrops have utilized this concept more than successfully.

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