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Understanding Different Types of Crypto Airdrops: Standard, Holder, and Exclusive
Why Airdrops are Important in Crypto
Crypto airdrops are perhaps the most powerful means for blockchain initiatives to increase popularity and incentivize early adopters. In simple terms, an airdrop is the disbursement of complimentary tokens to users—oftentimes in return for taking care of simple tasks, holding specific assets, or belonging to a certain group.
For consumers, airdrops are thrilling in that they are a way of acquiring tokens without paying for them. For projects, they are a marketing tactic that increases exposure, fosters loyalty, and distributes tokens broadly amongst likely future consumers.
But all airdrops are not created equal. There are various types based on the manner in which tokens are distributed. The three most prominent categories that you will come across are Standard Airdrops, Holder Airdrops, and Exclusive Airdrops. Knowledge of each can enable you to make the most out of participation and minimize lost opportunities.
Standard Airdrops
A Standard Airdrop is the most common and well-known distribution format. Users usually need to accomplish simple tasks in order to receive free tokens. The tasks are created to promote the project and get new people on board.
Typical requirements include:
Registering for the project newsletter
Following the project on Twitter or Telegram
Retweeting tweets or mentioning friends
Completing a basic registration form with your public wallet address
The elegance of standard airdrops is how accessible they are. Just about anyone with a crypto wallet can typically participate, which makes them a newb-friendly option. They're commonly utilized by new ventures to acquire early popularity quickly.
Example: During 2018, numerous ICO projects employed standard airdrops to spread tokens far and wide ahead of launching their platforms. While not all ventures lived on, the initial airdrops succeeded in spreading the word.
The catch is that standard airdrops are not as valuable as other kinds. Because everyone can join in, the tokens get spread thinly over a huge number of individuals.
Main point: Standard airdrops are simple to participate in but typically modest payouts. They're ideal for newbies who want to get their feet wet with crypto airdrops without much effort.
Holder Airdrops
A Holder Airdrop is more selective. Rather than requiring users to perform promotional tasks, such airdrops incentivize those already holding a certain cryptocurrency or token.
For instance, if you have Ethereum, a project on Ethereum could airdrop you its native token as a thank you for supporting the ecosystem. Or if you have a project's governance token, you could receive extra tokens as encouragement to stay loyal.
Holder airdrops typically function via blockchain snapshots. The project snaps a "snapshot" of all wallets that possess a particular token at a certain date and time. Eligible wallets receive the new tokens automatically or, depending on the process, by a claim.
Example: Stellar (XLM) executed one of the most well-known holder airdrops by sending tokens to holders of Bitcoin. Uniswap (UNI) more recently incentivized users who had used its decentralized exchange up to a cutoff time.
The benefit of holder airdrops is that they tend to yield more valuable rewards than traditional airdrops. The catch? You must hold qualifying tokens beforehand, which may necessitate a preinvestment.
Key takeaway: Holder airdrops reward current token holders, so they are best suited for long-term holders who already have a stake in particular ecosystems.
Exclusive Airdrops
Exclusive Airdrops take it a notch higher. These are deeply targeted token allocations that are reserved for special groups, usually to incentivize loyalty, early movers, or regular activity.
Unlike standard airdrops, where anyone can join, or holder airdrops, which require holding certain tokens, exclusive airdrops are invitation-only. Eligibility is determined by the project, usually based on specific criteria.
Some examples of exclusive airdrop conditions include:
Being an early user of a decentralized application (DApp)
Participating in governance voting
Contributing to open-source development
Being part of a select community (like NFT holders or DAO members)
Example: The 2021 Ethereum Name Service (ENS) airdrop is a good example. ENS gave governance tokens to users who had registered domain names via the service, in effect rewarding early participants in building out the ecosystem.
They are often the most highly valued since they are only available to smaller, active groups. Not only do they provide airdrops for free, but they also provide a sense of identity and acknowledgement to a project's community.
Key takeaway: Exclusive airdrops are scarce and highly valued, usually reserved for contributors who actively participate or are an early adopter of a project.
Which Airdrop Type Is Best for You?
The "best" kind of airdrop is a function of your objectives and level of engagement with crypto:
If you're new: Begin with typical airdrops to become accustomed to the process.
If you're an investor: Holder airdrops can be profitable if you already have holdings of good projects.
If you're a builder or early adopter: Exclusive airdrops can yield the greatest returns, since they are aimed at highly active users.
Lots of seasoned airdrop hunters diversify their strategy, engaging in all three categories to get the most out of them.
Final Thoughts
Airdrops are not about free money—they're about getting involved in the development of blockchain projects and communities. By comprehending the distinction between Standard, Holder, and Exclusive Airdrops, you can strategize accordingly based on your objectives and most importantly, get the most out of them.
Keep in mind, though, that the crypto universe is both full of real rewards and possible scams. Double-check announcements at all times, have a dedicated wallet, and never, ever share your private keys. Done correctly, airdrops can be a profitable and enjoyable way to build your crypto collection.