🚀 How to find a profitable airdrop of cryptocurrencies
🕵️♂️ In this piece, we’re diving into how to find the juiciest airdrops and spot the real deals from the duds.
Why Do Projects Give Away Free Coins?
Crypto airdrops are all about getting free crypto (including NFTs) for doing some simple tasks.
💥 Usually, projects drop these freebies as part of marketing stunts to grab the attention of investors and users, and to boost community loyalty. By taking on tasks, airdrop participants help test new features and pump up the project’s popularity. In return, they bag some tokens or other perks.
🔍 If you know where to look, you can make some decent coin. For example, top-tier project Arbitrum was giving away $1000+ in tokens for simple network activities before their main launch. You had to use bridges and swaps, engage in staking, and other stuff like that. Basically, airdrop folks were like beta testers, helping devs spot bugs and vulnerabilities.
🕵️♂️ How to Hunt for Profitable Airdrops
To avoid wasting time on a dud airdrop that won’t pay off, stick to a few simple rules:
💸 Rule 1: Check out who’s backing the project and how much dough they’ve thrown in. If big players like Coinbase or Binance Lab are investors, it’s unlikely the project will shut down in two weeks or vanish without a trace. Serious companies do their homework and don’t mess with doomed, irrelevant, or worse, scammy projects. The amount of money raised is another key indicator. The more cash a project has collected, the more they can share with the community.
🚀 Rule 2: Look at the relevance of the problem the project addresses. Solid projects exist to solve user problems or make life easier. For instance, transactions on the Ethereum network are slow and often pricey. Arbitrum offered a solution that speeds things up and cuts costs. They spotted user pain points and found a kickass solution that helped them quickly outpace older networks. That’s why LayerZero managed to pull in $120 million from top funds.
📈 Rule 3: Keep an eye on how the project is valued. The estimated value of the project helps forecast what it might be worth in the future. It’s based on the team’s internal valuation and early investor injections. Generally, even for upcoming projects, you can find a ballpark valuation figure. For example, LayerZero is valued around $3 billion—a hefty sum for the crypto industry.
🧠 Rule 4: Dive into the tokenomics. Tokenomics is a crucial part of the fundamental analysis of a crypto project. Along with the roadmap, whitepaper, and team lineup, it helps assess the startup’s viability. For a blockchain project to grow steadily and not crash at the first sign of trouble, it needs a well-thought-out tokenomics.
🌉 Rule 5: Track activities within the project. Activities are what airdrop participants do to earn rewards or drops. In good projects, there are plenty of activities in both the testnet and mainnet, like minting NFTs, swapping tokens, and using cross-chains and bridges.
🌐 Rule 6: Pay attention to the ecosystem. The cooler and more promising the project, the more services want to interact with it. Thus, smart projects build a broad testnet ecosystem, including bridges, NFT marketplaces, and other supporting services.
How Not to Lose Money on an Airdrop 🚫
We’ve discussed how to find a profitable airdrop. However, it’s crucial to consider the risks associated with airdrop activities.
By definition, an airdrop is a free token giveaway. That means participants shouldn’t have to invest anything or take any risks. But, staying alert is key because there’s always someone looking to make a quick buck at your expense.
Scammers flock around popular projects. Typically, they try to steal your money through fake websites and phony links, or they might download a virus that cleans out your wallets and sends all your passwords and personal info to the scammers.
Here’s what you can do to avoid this:
Always double-check information from official sources, and even better, from multiple sources. Never click on any links in emails or Discord messages, always cross-reference with the project’s official site. When dealing with unofficial bridges or swaps from any project, remember to disconnect your wallet from the site. Never share your passwords or personal details. 🛡️
Sites for monitoring airdrop 💸
- CoinMarketCap: This is the largest service for tracking cryptocurrency prices and market capitalization. In 2021, CoinMarketCap launched an Airdrop service. The benefit of the airdrops listed here is that they are selected by the service’s team. However, due to the limited number of participants and the small number of places, the chance of becoming one of the lucky ones is not high, but winners may receive more tokens than in a standard airdrop.
- AirdropAlert: This is one of the most popular resources specializing in airdrops. AirdropAlert does not publish all airdrops, but only those from projects that, in the team’s opinion, have a chance of success, or in other words, the best airdrops in cryptocurrency. You can subscribe to the AirdropAlert newsletter to receive timely notifications about current distributions.
- Airdrops.io: This service offers a larger number of distributions than AirdropAlert but categorizes them. For example, with this service, you can find “hot” airdrops, distributions for holders (stakedrops and fairdrops), or upcoming airdrops.
- DappRadar: One of the most popular services for monitoring DeFi projects, which also conducts airdrops from partner projects. To participate, simply register on the site and connect your wallet.
- Coindar: An events calendar with advanced features. Here you can track specific projects or, for example, immediately see the native token’s reaction to an announcement about an upcoming airdrop.
- Alphainsiders: This is a Twitter account that publishes current news about promising projects.
These platforms offer various tools and information to help you stay updated with new and potentially profitable airdrops in the crypto space.
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