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I hope you are all well. In the last article I talked about what cryptocurrency airdrops are. Because that article is long, I thought of discussing the topic of cryptocurrency airdrops in two articles.

In today's article, I hope to present the history of cryptocurrency airdrops, its types, advantages and disadvantages. First, let's look at the history here.

History of cryptocurrency airdrops

If look at the history of cryptocurrency airdrops, it first started in 2014. The coin introduced for the first airdrops is Auroracoin. According to the data, 50% of the total coin supply is dedicated to Icelandic citizens. Users only had to register an account to participate in these airdrops. So this is how Auroracoin came through airdrops as the first pioneer coin of the cryptocurrencies platform.

So from 2014 to 2023 many cryptocurrency airdrops projects have been done in this way. Bitcoincash, Oyster airdrop, Minereum and BitTorrent airdrop for tron ​​holders are the biggest cryptocurrency airdrops that ended in this way.

Different types of cryptocurrency airdrops

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There are several types of cryptocurrency airdrops and they are classified according to their functionality and special features.

🔹 Standard airdrops

This is very simple. To participate in a standard airdrop and get free coins or tokens, all you have to do is register for the project and create an account. This is similar to the eligibility criteria for participating in the first cryptocurrency airdrop. Tokens are provided on a first-come, first-served basis. And decentralized exchanges have used standard airdrops to reward for new users.

🔹Exclusive airdrops

The process that takes place in these airdrops is to reward (free coins or tokens) depending on the user's time logged into the project and the level of engagement in a forum.

🔹Holder Airdrop

Holder airdrops are based on user wallets received by the project on a specific day or within a pre-determined period of time. That is, users who complete the simple tasks introduced by the project and reach a certain amount will be given free rewards.

🔹 Bounty airdrop

Here the functions are slightly different. You already know that airdrops are a marketing strategy. In order to participate in bounty airdrops and get free coins, all users have to do is participate in the promotional activities introduced by the project. These are simple tasks. This includes tasks such as posting short and simple content about their project through social media such as Facebook, Twitter or Instagram.

Advantages of cryptocurrency airdrops

• Airdrops give equal opportunity to any user irrespective of their financial status to participate and complete the relevant tasks and get free coins.

• This allows many people to rally around the new project by giving people free tokens as a marketing promotion. This will create a strong community around the platform.

• Airdrops projects can be used as good marketing tools for blockchain projects.

• It is also easy to adopt the new project through airdrops and it can also act as a way to inform members and giving benefits.

Disadvantages of cryptocurrency airdrops

• Various fraudsters are trying to obtain the private keys of users' wallets by launching fake airdrops projects.

• Thus tokens distributed for free through airdrops may have no specific value in some cases. That means it can be volatile in the face of rapid price fluctuations.

• Compared to launching an airdrops project, the pioneers need to invest more funds. And this process is a complex process.

Conclusion

This explains that there are different types of cryptocurrency airdrops and the functionality of each type is different. And there are advantages as well as disadvantages.

References :-
1, 2, 3

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❤ Thanks for reading ❤

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