What is a Crypto airdrop? The complete guide to earning amazing returns with zero cost

What is an Airdrop? A Win-Win Game for Projects and Users

In the cryptocurrency field, there is a mechanism that seems like “free money falling from the sky” called Airdrop. Essentially, it is a marketing strategy used by project teams—distributing tokens for free to qualified users to promote the project.

Rather than just charity, it is a savvy ecosystem-building approach. By conducting airdrops, project teams distribute tokens to potential users who then become ecosystem participants and token holders. Their usage and dissemination generate positive network effects. For users, this is an opportunity with low or zero investment that has the potential for huge returns; for project teams, it is an efficient way to acquire early users and boost ecosystem activity.

The forms of airdrops are also constantly evolving. Early airdrops were simple and crude—just promote Bitcoin on social media to earn rewards. But as the market matures, project teams set increasingly complex criteria, mainly divided into two categories:

First type: Light participation—completing simple tasks like reading articles, sharing content, participating in social activities to earn tokens; Second type: Deep contribution—requiring users to perform long-term staking, participate in governance voting, write smart contracts, and other substantive contributions to qualify for airdrops.

How Much Money Can You Make from Airdrops? These Data Will Change Your Perception

Before market conditions change dramatically, airdrops are one of the most efficient ways for crypto investors to earn excess returns. Although returns vary by project, overall, grabbing airdrops still features low input and high output.

Looking at this ranking of crypto airdrops based on historical peak prices, you can understand—

What do these numbers represent? Take Uniswap as an example: in September 2020, each eligible user received 400 UNI tokens. The price on that day fluctuated between $3-4, which is equivalent to a “free asset” worth $1200. At its peak, this airdrop’s total value exceeded $10,000—for users with zero investment, it’s like hitting the lottery.

The APE airdrop was equally astonishing. In March 2022, Yuga Labs airdropped APE tokens to the community, about 1500 per account. Based on the initial price of $6-7 on the first day, users could directly earn $9000 to $10500.

Even the recent Arbitrum airdrop, with a unit price of only $1.3-1.4, but with nearly 2000 tokens airdropped, users could still easily earn around $3000.

Not all airdrops will produce such dazzling results, but receiving a few tens to hundreds of dollars in airdrops per account is already common in the market. Projects with large funding scales and strong backgrounds are capable of making “big-picture” airdrops, while smaller or problematic projects may only offer limited airdrop benefits.

What Are Worthy Airdrop Opportunities in 2024?

The crypto ecosystem is constantly changing, with new high-potential projects emerging every quarter. The first half of 2024 has already witnessed the rise of several star projects—Starknet (STRK), Etherfi (ETHFI), Dog Hat Coin (WIF), and Notcoin (NOT)—bringing substantial returns to early participants.

For the second half of the year, here are some of the most promising directions for airdrop opportunities—

Cross-Chain Infrastructure Sector

LayerZero raised $120 million in its latest funding round, with previous Series A and A1 rounds raising $6 million and $135 million respectively, reaching a total valuation of $3 billion. Infrastructure projects like these serve the entire ecosystem, and their token allocations tend to be highly valuable.

New L1 Blockchains

New-generation L1 projects like Monad are actively developing, and their ecosystem airdrops will be a key focus later on.

L2 Scaling Ecosystem

zkSync, StarkWare, Linea, Scroll, and other L2 solutions have secured billions in funding, with strong token issuance expectations. Users can accumulate airdrop eligibility by interacting on these chains through swaps, providing liquidity, bridging assets across chains, etc.

Testnet Projects

Projects like Base, SEI, Sui, Zircuit have opened their testnets. The biggest advantage is that no real funds are required. Newcomers can start with testnets, using virtual tokens to perform various interactions and accumulate airdrop points at zero cost.

Besides these projects, new projects are constantly emerging in the market. As long as investors stay attentive to the market and follow social channels like Twitter, Discord, Telegram, they can continuously discover new airdrop opportunities.

How to Efficiently “Grab” Airdrops

With thousands of crypto projects, blindly participating in every airdrop will inevitably be inefficient. To maximize gains from airdrops, you need to establish a mature evaluation and execution methodology.

Step 1: Assess project funding scale and airdrop willingness

This is the most critical initial filter. Projects with funding over hundreds of millions generally have token issuance needs, greatly increasing the likelihood of an airdrop. Projects with less than tens of millions of dollars and no reputable investors are likely limited in their ability to conduct large-scale airdrops due to funding constraints.

Use public funding info sites (like Crunchbase, PitchBook), crypto media reports, and official project announcements to quickly understand funding progress and valuation. Also, follow professional airdrop bloggers and tracking accounts—they will promptly share the latest project info and airdrop strategies.

Step 2: Develop interaction strategies suited to the project’s stage

Once the target project is identified, design different participation methods based on its development stage—

For testnet stage projects, users only need to claim test tokens and perform various interactions, which is the easiest. This is the best starting point for beginners.

For mainnet projects, interaction methods need to be more refined. Common interaction types include:

• Task-based: reading whitepapers, sharing official content, liking social media posts, etc.
• On-chain interaction: performing swaps on DEXs, bridging assets, sending and receiving tokens
• Staking: single-token staking, providing liquidity, long-term locking, etc.
• Hybrid: combining multiple methods to increase airdrop points

Step 3: Pay attention to timing and interaction frequency

A frequently overlooked detail is that interaction frequency and duration have become important filters for project teams. They analyze interaction patterns to weed out “get-rich-quick” airdrop hunters, favoring those who participate steadily over time.

Instead of frantic short-term interactions, plan a continuous engagement schedule spanning several weeks to maintain consistent participation.

Step 4: Avoid “Witch Attack” risks

Many airdrop hunters try to use multiple accounts to participate repeatedly. However, project teams have developed mature detection mechanisms. Multiple related accounts will be flagged with a “Witch” label, ultimately leading to disqualification from the airdrop.

If you do use multiple accounts, ensure proper account isolation—use different IP addresses, wallets, interaction habits, etc. Otherwise, all related accounts’ airdrop eligibility may be invalidated.

Common Questions for Beginners About Airdrops

Q: Can I participate in airdrops with no experience?

Absolutely. Once you grasp the basic concepts, you can start with zero-cost testnet projects, using virtual tokens to practice. After familiarizing yourself with the process, gradually move to mainnet interactions. It’s recommended to start with a single account, and only consider multiple accounts once you have gained skills and experience.

Q: Are there scams in airdrops?

Yes, scams do exist. The safest approach is to only participate in airdrops from large projects and well-funded, reputable projects. Avoid following rumors or participating in obscure projects. Also, if an airdrop requires you to invest large sums, it’s almost certainly a scam—real airdrops are usually zero or near-zero investment.

Q: Should I sell my airdropped tokens immediately?

There’s no standard answer; it depends on personal judgment and project prospects. From a risk management perspective, selling on the first day of the airdrop is the safest “cash out” strategy, especially if you have already gained significant profits. If you believe in the project’s long-term potential, you can choose to hold and observe.

Q: How can I discover new airdrop opportunities in time?

There are several professional platforms to track airdrops—AirdropAlert, Airdrops.io, CoinMarketCap’s Airdrop section, etc., which regularly update the latest info. Also, join crypto communities on Twitter, Reddit, Telegram, where project teams often announce airdrops first.

Summary: Airdrops Have Become the “Excess Return Machine” in the Crypto World

Airdrops are evolving into a primary way for more crypto investors and ordinary users to earn excess returns. Although the difficulty of obtaining airdrops increases as ecosystems mature and filtering criteria become stricter, the potential rewards remain high.

In the foreseeable future, high-quality project airdrops will continue to emerge. For investors seeking profits through crypto, mastering the logic and methods of airdrops has become an essential skill. Starting from testnets, accumulating experience step by step, and then precisely selecting and executing mainnet airdrops—once you develop a systematic approach, you can steadily earn substantial income from Airdrops.