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Airdrop is a distribution of cryptocurrency tokens or coins for free, to a large number of cryptocurrency wallet addresses. Airdrops are often associated with the launch of new crypto projects or DeFi protocols, with the goal of attracting attention and new followers, resulting in a bigger user base and increased coin payments.
Building an Airdrop became a more important part of the ICO after crypto entrepreneurs started private sales rather than public sales to increase their initial value.
Airdrop aims to leverage network effects by incorporating existing holders of certain blockchain-based currencies such as Bitcoin and Ethereum into their currencies or projects.
Why Launching a Cryptocurrency Airdrop?
The best reason for doing a crypto airdrop is to promote a blockchain cryptocurrency company. By issuing free tokens to users for free, the team members can bootstrap the project and make sure there is a fair distribution of tokens among the community users from day one.
Moreover, eligible airdrop users of these tokens are incentivized to build awareness and help the project reach a bigger audience once the token gets listed and begins trading on exchanges. The more interest a token gets, the more likely it will achieve a higher price. Airdrops often increase traction by promoting the launch of a cryptocurrency project` on social media and crypto forums.
These campaigns are designed to attract more people to the platform through financial incentives, so this is the same as receiving a HelloFresh coupon in an email with a discount code. Legitimate crypto airdrops never require users to invest. Instead, it’s a way to differentiate yourself from competitors who have sought external funding before issuing tokens.
Examples of Cryptocurrency Airdrops
The crypto industry has recently seen some crypto airdrops that have surprised users. OpenDao’s SOS Token Airdrop has rewarded all non-fungible token (NFT) creators, collectors, and enthusiasts previously traded on the OpenSea NFT Marketplace. The recipient did not have to perform any tasks other than manually requesting the token from the website.
The AirDrop helped OpenDao increase its Twitter followers to over 60,000 and over 120,000 addresses requesting tokens. A similar initiative comes from GasDAO, which issued GAS tokens on the Ethereum blockchain. Anyone who has paid more than $ 1,559 for gas on Ethereum is eligible for AirDrop and tokens can be charged from the website.
Over 57,000 addresses claimed airdrop. GAS tokens provide GasDAO voting rights aimed at becoming the voice of active users of the Ethereum network.
The third example is the LOOKS airdrop organized by the LooksRare team. Users with 3 or more Ether transaction volumes in OpenSea between June 16, 2021, and June 14, 2021 After listing the NFTs for sale on the LooksRare Marketplace in November 2021, they were eligible for LOOKS tokens.
Users holding LOOKS tokens will receive a portion of the transaction fees generated by the LooksRare platform. In addition, users can bet LOOKS to earn free tokens.
How to Build an Airdrop and Start It the Right Way
Before you build an airdrop you need to have a cryptocurrency token or coin and a social media community so people can follow up with your project’s announcements, news, updates, etc.
The next step would be to visit Skyrush’s airdrop maker page and click on the “GET STARTED” blue button and you will be redirected to the listing page.
Once you click on the blue GET STARTED button you will be redirected to a page where you have to add social media platforms where you want your project to appear.
Next, you will have to add your project’s social media URLs to your airdrop.
Once your social media channels are added then you will have to add the following info for your airdrop.
- Social media tasks and reward per task
- Airdrop description
- Airdrop image
- Airdrop Start Date & End Date
- Submit your airdrop for a review
Skyrush offers a simple one-stop airdrop listing process where you can build up your airdrop within minutes, start engaging with our airdrop hunters and build up your community.
Creating your Airdrop Strategy
Define your Objective
Determine the results you need to attain and the moves you`re inclined to praise earlier than launching your airdrop campaign. While maximum commercial enterprise proprietors execute everyday airdrops, we suggest bounty or unique airdrops, which assist create a smaller but more potent network with the aid of using incentivizing users.
Create a Distribution Plan
Determine the number of coins or tokens that you want to distribute as part of your crypto airdrop campaign. This may seem like a simple step, but it’s an important decision that will impact the token economy over the next few years. This decision is important to the success of your business.
For example, if you offer too many tokens, the value of the tokens may diminish. On the other hand, offering too little will not help you reach your community-building goals.
Before making this decision, aspects such as overall supply and future market value need to be considered. It’s a good idea to plan a “smart drop” where a significant number of tokens will be sent to a small number of people who are likely to develop a community to support the project.
Join the Community
There is a reason why most blockchain projects continue to invest heavily in community development. Airdrops are a great way to promote a community, but they’re not enough. AirDrop needs to be part of a broader marketing and community-building strategy.
Blockchain networks grow only when a community of people uses them. Accounts on Twitter, Telegram, Reddit, BitcoinTalk, Discord, and other similar active ones are essential for your project. Your blockchain community will only expand if a number of people use it. Therefore these users aren’t just marketing numbers, but a critical component of your project’s business plan.
Make the Process Simple and Verifiable
For those who want to join the community and need to verify their identity, we will create a simple onboarding process. Make the process of joining as simple as possible (such as Google Forms) and select questions that create relevantly and trusted information such as email addresses and telegram usernames.
Focus on Quality Rather than Quantity
Blockchain projects can learn from traditional digital advertising and make their target audience more selective. When it comes to community members who drive long-term value, quality should always be prioritized over quantity.
Launching an airdrop can be very beneficial for your project. More and more cryptocurrency companies are allocating tokens or coins from their project for airdrop promotions because they know it will fuel their project and give them a good push which is the key factor for a successful cryptocurrency project.