In the blockchain space, an airdrop is a process of distributing a certain number of cryptocurrency tokens to the wallets of users, 100% free of charge.
The goal of an airdrop for the company is to spread the word about their project, and since users receive free tokens, it's a win-win proposition.
There are essentially two types of airdrops: 1) surprise, unannounced airdrops, and 2) announced airdrops.
In most cases, blockchain-based startups will utilize announced airdrops in order to increase the buzz around their project.
Airdrops may be conducted for a variety of reasons, including:
- Lead generation
- Rewards for loyal users
- To spread awareness of a new cryptocurrency
With startups in the space looking to get their project noticed by more people, many will use an airdrop as a chance to spread awareness. Airdrops can create buzz around a cryptocurrency, and through word of mouth, more users are able to find out about a project.
When participating in an airdrop, just be aware of scams. Unfortunately, fraudulent activities are common in the space, with hackers attempting to steal private keys and hack wallets. You should never have to send cryptocurrency or fiat currency in order to receive an airdrop. Be sure to confirm the authenticity of an airdrop before participating, and only work with legitimate companies.
To participate, you'll need a cryptocurrency wallet. Since the majority of tokens on the market are ERC20 tokens, it's a good idea to set up an ERC20 compatible wallet if you don't already have one.
For more information about WorkChain.io's upcoming bounty and airdrop programs, be sure to stay tuned to our social media channels and watch out for our upcoming announcements: