What Are Crypto Airdrops? 5 Famous Examples

A cryptocurrency airdrop is a marketing practice that involves distributing coins or tokens of a Web3 project to the wallet addresses of eligible parties

 
Typically, these amounts of digital currencies are sent to the wallets of active blockchain community members for free, or in exchange for a minor task being completed – such as simply sharing or retweeting content from the issuing company. Ultimately, the primary goal of a crypto airdrop is to raise awareness and participation in a new project by distributing its native token to those who show early interest, completely free of charge. 
 

Key Points

 
– A cryptocurrency airdrop is a promotional strategy often used by startups in the crypto space.

– They involve sending tokens to cryptocurrency traders’ wallets, either for free or in return for minor promotional activities.

– Their purpose is to increase awareness and encourage ownership of a new cryptocurrency.

– Token distribution within airdrops can be based on various criteria, such as expressed interest, existing token holdings, intentional selection, or winning a raffle.

– While many airdrops are legitimate, some have been used for fraudulent activities, such as attempting to steal wallets or personal information.

– The term is a reference to physical airdrops, which usually relate to aircrafts delivering resources such as weapons, food, or medicine through physically dropping them out of the sky. 

Understanding Cryptocurrency Airdrops

Crypto airdrops are typically carried out by Web3 startups, in order to promote the popularity and initial circulation of their cryptocurrency. Often, the ultimate goal is to generate a new, heightened buzz around a project, as well as to get more people holding and trading its respective cryptocurrency once it becomes available on an exchange. Airdrops are often advertised on company websites, social media channels, and cryptocurrency forums.

To qualify for an airdrop, recipients may need to meet certain conditions, such as holding a minimum number of tokens in their wallet. Alternatively, they might be required to perform tasks like sharing information about the cryptocurrency on social media, engaging with members of the blockchain project, or writing a blog post about the currency. 
 

Types of Airdrops 

Standard Airdrops

 
In a standard cryptocurrency airdrop, participants simply need to express their interest to be eligible for the distribution. Usually, the only requirement is providing a valid wallet address, with no additional information needed.

Standard airdrops typically have a fixed number of tokens available for distribution, along with a cap on how many tokens each individual can receive. As a result, these airdrops can often be time-sensitive. 

Whilst the simplicity of this model makes standard airdrops popular, they can also leave participants vulnerable to exploitation, as anyone can create multiple wallets in order to claim more tokens, making it harder for others to gain fair access to the available tokens.
 

Bounty Airdrops 

 
Bounty crypto airdrops involve users performing certain tasks that often entail raising awareness around a project via social media. This could be through simply following the project on particular social media platforms, or actively making content that mentions/retweets/tags the company. There may also be referral bonuses or finder fees for participants who recruit others or sign-up to other initiatives of a project.

New Web3 mafia game OMERTA is a fitting example of a bounty airdrop. This is because it tasks users with following its several social media accounts in order to participate, as well as refer friends who must also actively participate. 
 

Holder Airdrops

 
Holder crypto airdrops involve tokens being automatically distributed to users based on the amount of existing tokens they hold. Since the majority of blockchain data is publicly accessible, it’s typical for everyone involved in a project to have full visibility into wallets and token distributions.

A downside of holder airdrops is that some token holders may not want to participate in the airdrop, however they may have no choice. Additionally, this method tends to benefit those with the largest investments within an ecosystem. 
 

Exclusive Airdrops

 
An exclusive airdrop is a more refined version of the holder airdrop. This airdrop type often involves certain individuals being handpicked to receive tokens based on metrics other than the number of tokens they hold. Such metrics can include level of involvement in a project, or the amount of money spent on non-token activities.

This approach allows projects to reward those who have demonstrated long-term commitment or support in ways away from holding tokens. It’s therefore more of a centralized and personalized form of distribution, and even wallets with zero holdings could be chosen to receive token rewards if applicable. Ultimately, exclusive airdrops help strengthen ties between the project and its most engaged community members, providing an incentive for continued loyalty and participation.
 

Raffle Airdrops

 
Raffle airdrops introduce an element of chance into the token distribution process. In this format, a project will announce that a limited number of tokens are available for distribution. Following this is a period wherein participants can earn raffle tickets in order to enter the event. Typically, raffle tickets can be acquired in various ways, such as holding tokens, accumulating points through engagement, or simply expressing interest in the airdrop.

Given the high interest and limited token supply in play, the project then holds a raffle in order to randomly select the winners. Only a certain number of wallets will be chosen to receive the airdropped tokens, making this type of distribution a mix of engagement and luck. Raffle airdrops often create excitement and competition within communities by encouraging participants to vie for a chance of becoming a lucky token recipient.
 

5 Famous Airdrop Case Studies

1. Uniswap (UNI) 

 
Type: Standard Airdrop

In September 2020, Uniswap, one of the largest decentralized exchanges (DEX), rewarded early users with 400 UNI tokens per wallet. Anyone who had used the platform before a specific date was eligible to enter the event, regardless of their previous trade activity volumes. This standard airdrop provided tokens to over 250,000 users, with some earning as much as $16,000 as UNI’s value soared from its initial price.
 

2. Stellar Lumens (XLM) 

 
Type: Holder Airdrop

Stellar, which is a blockchain designed for cross-border transactions, conducted one of the largest crypto airdrops in 2019, distributing 2 billion XLM tokens (worth around $120 million) to Keybase users. This airdrop targeted existing wallet holders and users of the Keybase platform, rewarding them with tokens based on their holdings and activity.

3. Aptos (APT) 

Type: Bounty Airdrop

In October 2022, Layer 1 blockchain Aptos conducted a highly anticipated airdrop just before its mainnet launch. The project airdropped 150 APT tokens to users who had participated in their incentivized testnet. This airdrop was a classic bounty style, where rewards were given for early contributions, such as testing the blockchain’s functionality during its development.
 

4. Blur (BLUR) 

 
Type: Exclusive Airdrop

NFT marketplace aggregator Blur conducted multiple airdrop seasons in 2023, including an exclusive airdrop to early adopters and high-volume traders on its platform. The rewards were distributed based on trading volume, engagement, and contributions to the community. One trader earned over $11 million in Blur tokens, highlighting the value of participating in exclusive airdrop opportunities.
 

5. LooksRare (LOOKS) 

 
Type: Raffle Airdrop

In January 2022, NFT marketplace LooksRare airdropped its governance token, LOOKS, to OpenSea users based on a raffle-like system. Participants who traded more than 3 ETH on OpenSea were eligible for the airdrop, with tokens distributed randomly among those who met the criteria. The event was designed to attract users from OpenSea to LooksRare and provided substantial rewards to those who were selected.