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One obvious reason for airdrops is to promote a new platform or service among the crypto community. As word of the participants spreads throughout the crypto ecosystem, the likelihood of people flocking to the service increases exponentially. This works similarly to traditional business digital marketing.
The underlying reason, however, is that the platform’s virtual currency must maintain its value and only grow over time. It is the pinnacle of a platform’s development in the crypto world. Sand, the virtual currency for the popular play-to-earn blockchain game Sandbox, for example, began trading at around USD 0.05 before rising to an all-time high of more than $7. This represents a 140X increase since January of last year.
The number of people investing in the currency determines a large portion of its value. As the volume of transactions and holders of a currency increases, so does its market value. An airdrop is thus a solid way to get that started with a large audience.
Top 3 Successful NFT Projects Thanks to an Airdrop
Now that we know how important the airdrops can be for the marketing of the project, we will list the top 3 projects that succeeded thanks to their airdrop marketing campaign below.
1. Bitcoin Cash
Bitcoin Cash is a peer-to-peer electronic cash system with the goal of becoming a reliable global currency with fast payments, low fees, privacy, and high transaction capacity (big blocks). Bitcoin Cash payments are sent directly from one person to another, in the same way that physical money, such as a dollar bill, is handed to the person being paid.
Bitcoin Cash, as a permissionless, decentralized cryptocurrency, requires no trusted third parties and no central bank. Bitcoin Cash, unlike traditional fiat money, does not rely on monetary intermediaries such as banks and payment processors.
Governments or other centralized corporations cannot censor transactions. Similarly, funds cannot be seized or frozen because financial institutions do not have control over the Bitcoin Cash network.
About the airdrop
A disagreement between the Bitcoin Cash development communities resulted in a chain split, resulting in Bitcoin Cash ABC and Bitcoin Cash SV (Satoshi Vision).
Anyone who had Bitcoin on a supported exchange or in a private wallet at block 478558 on August 1st, 2017 was eligible to claim Bitcoin Cash.
Its airdrop had a value of $4300 per BCH at one point.
Uniswap is a well-known decentralized trading protocol that facilitates automated trading of decentralized finance (DeFi) tokens.
Uniswap, an example of an automated market maker (AMM), launched in November 2018, but has grown in popularity this year as a result of the DeFi phenomenon and associated surge in token trading.
Uniswap’s goal is to keep token trading automated and completely open to anyone who owns tokens, while improving trading efficiency compared to traditional exchanges. Uniswap increases efficiency by using automated solutions to solve liquidity issues, avoiding the problems that plagued the first decentralized exchanges.
Uniswap went a step further in September 2020, creating and awarding its own governance token, UNI, to past protocol users. This increased both the potential for profit and the ability for users to shape its future — an appealing feature of decentralized entities.
About the airdrop
Based on a Snapshot taken on September 1, 2020 12:00 am UTC, 60 percent of the UNI genesis supply is allocated to Uniswap community members, with a quarter (15 percent of total supply) available to historical users, liquidity providers, and SOCKS redeemers.
Each address that has ever called the Uniswap v1 or v2 contracts is eligible for 400 UNI. This includes 12,000 addresses that have never submitted a successful transaction.
Historical liquidity providers can claim 49 million UNI. Since the deployment of Uniswap v1, the formula has accounted for LP liquidity on a per-second basis, ensuring that rewards are weighted towards LPs that provided liquidity when total liquidity was low.
Each address that has either redeemed SOCKS tokens for physical socks or owned at least one SOCKS token at the snapshot date is eligible for 1000 UNI.
3. Axie Infinity
Axie Infinity is a virtual world populated by fierce, adorable pets known as Axies. These pets can be fought, collected, and even used to earn cryptocurrency while playing DeFi games. Axie may appear similar to Pokemon, Tamagotchi, or even Animal Crossing on the surface. The main difference is that in-game resource markets are open and controlled by players.
Games with real, player-owned economies will become digital homes, providing a place for a new generation to live, work, and play. You own a portion of Axie’s fees, future AXS staking rewards, and even voting rights if you own AXS. Try out the Demo!
If AXS holders stake their tokens, play the game, and vote in key governance votes, they will be able to claim rewards. Players will also be able to earn $AXS tokens by participating in various Axie Infinity Universe games and user-generated content initiatives. Sky Mavis, based in Vietnam/Singapore, created Axie Infinity.
About the airdrop
The Axie Infinity Airdrop was worth Free AXS tokens for users who played various games within the Axie Infinity Universe and participated in user-generated content initiatives. If AXS holders staked their tokens, played the game, and voted in key governance votes, they could claim rewards.
Season 16 was also launched, with 8,000 AXS tokens ($ 36,000) in rewards for the top 200 battlers! The winner received 400 AXS at the end of the season. This hefty prize could have gone to anyone, anywhere. That is the power of earning through play. The season ended on April 18th.