What is a crypto airdrop?
A crypto airdrop is when a project distributes tokens for free to a set of wallet addresses. Airdrops are used to:
- Reward early users and supporters
- Distribute governance tokens to the community
- Bootstrap liquidity for a new protocol
- Generate awareness and marketing
Types of airdrops
Retroactive airdrops — reward users who interacted with a protocol before a snapshot date. Uniswap's UNI airdrop (400 UNI to all early users, worth ~$1,200 at launch) is the most famous example.
Participation airdrops — reward users for completing specific actions (following on social media, joining Discord, making a deposit).
Holder airdrops — distribute tokens to holders of another token.
How to qualify for airdrops
- Use DeFi protocols early and regularly
- Provide liquidity to DEX pools
- Participate in governance votes
- Follow projects on social media and join their communities
- Hold relevant tokens
Airdrop scams
Many "airdrops" are scams designed to steal your private key or drain your wallet. Red flags:
- Requires connecting wallet to an unknown site
- Asks you to "approve" a contract with unlimited spending
- Promises unrealistic amounts
- Unsolicited DMs about airdrops
Never enter your seed phrase to claim an airdrop.