The Good Tech Companies - Educational Byte: What Is a Crypto Airdrop or How to Earn Free Money

Episode Date: October 30, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/educational-byte-what-is-a-crypto-airdrop-or-how-to-earn-free-money. A crypto airdrop is a method used by cryptocurrency projects to distribute free tokens to a group of users. Want to receive some of them? Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #cryptocurrency-investment, #crypto-airdrops, #free-token, #obyte, #good-company, #what-is-an-airdrop, #crypto-marketing, #obyte-distribution, and more. This story was written by: @obyte. Learn more about this writer by checking @obyte's about page, and for more stories, please visit hackernoon.com. A crypto airdrop is a method used by cryptocurrency projects to distribute free tokens to a group of users. Want to receive some of them?

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Educational Byte What is a crypto airdrop or how to earn free money, by Obite? If free money sounds suspicious to you, then you're doing a good job of taking care of your funds. But fear not, because, in this case, crypto airdrops are a totally legit marketing tool. They've been around for years, and they keep coming. Many cryptocurrency projects actually give away a portion of their coinstow gain adoption and recognition among

users. That's exactly what an airdrop is, indeed, a method used by cryptocurrency projects to distribute free tokens to a group of users, often as part of a marketing or community-building strategy. It typically works by sending tokens directly to users' wallets based on certain criteria, such as holding a specific coin or completing tasks like social media engagement. Airdrops purpose and types Crypto airdrops are used to distribute tokens widely and quickly, helping projects build an initial ownership base. When tokens are owned by many people, the project becomes more stable, as its value isn't concentrated in the hands of a few. Airdrops also serve as a strong marketing tool,

drawing attention to the project as people are often eager to receive free tokens. This excitement helps increase awareness and brings new users into the ecosystem. Airdrops can also be used to reward loyal community members. By offering tokens to existing supporters, development teams foster a sense of appreciation, encouraging these users to stay engaged with the project and reducing the likelihood of them selling off their holdings. This approach helps maintain the token's price and strengthens community loyalty over time. Not all airdrops are the same, though, and their intended effectiveness could vary.

There are several types of airdrops, the same, though, and their intended effectiveness could vary. There are several types of airdrops, each serving a different purpose. Standard airdrops require users to sign up, offering a straightforward way to receive tokens. Bounty airdrops, on the other hand, require users to perform specific tasks like promoting the project or contributing to its development. Lastly, holder airdrops reward existing supporters who already own a certain cryptocurrency, often without needing them to take any further action. Some downsides. Airdrops can be a great way to boost awareness and attract users to a crypto project, but they come with several challenges, especially for the team behind the projects and its loyal community. One significant downside is the sell pressure they create. Since recipients get tokens for free, many are quick to sell them off rather

than hold them for the long term. This sudden increase in sell pressure can drive down the token's price, hindering the project's market stability and long-term value. Another issue is the potential for users to exploit the airdrop process. Some participants may create multiple accounts or fake activities to maximize their rewards while contributing little to the project. This not only skews the token distribution but also wastes resources that could have been better spent on genuine supporters. Additionally, airdrop hunters often have no loyalty to the project. Their goal could be only to collect tokens and sell them immediately, rather than becoming active members of the community. This can make it difficult to

build a dedicated user base and achieve sustainable growth. As we can see, the effectiveness of airdrops is debatable, as they often attract short-term users. However, they remain a useful complementary tool for generating initial interest and bringing attention to new crypto projects. How to participate in a crypto airdrop? To participate in a crypto airdrop, the first step is to meet the eligibility criteria set by the project. These requirements can vary and may include, as we've mentioned, simple actions like signing up or more involved tasks such as promoting the project on social media. Regardless of the specific conditions, you'll always need a crypto wallet compatible with that specific platform to receive the tokens.

In most cases, when an airdrop is announced, pay attention to two important dates, the snapshot and the distribution. The snapshot is when the project team records the list of wallets that qualify for the airdrop, so you'll need to ensure you meet all requirements by that time. The distribution date is when the tokens will be sent to your wallet, marking the completion of the airdrop process. Staying up to date with your favorite networks on social media could help you to discover new airdrops. However, it's important to always stay cautious. Only follow official instructions from official accounts to avoid potential scams and keep in mind that you may have tax obligations on any tokens you receive. Even if the token's value drops, taxes may still apply, so it's wise to plan ahead. Additionally, remember that

cryptocurrencies can be volatile, so airdropped tokens may fluctuate in value significantly. Obite Distribution Over the years, Obite has had several types of airdrops trying to help with the distribution and adoption of its native currency GBYTE and the private coin BlackBytes, GBB. Instead of an initial coin offering, ICO, or a similar crowdsale, GBYTE's started their journey by being distributed for free to Bitcoin, BTC, holders who chose to participate between 2016 and 2017. Around 645,341 GBYTEs, more than 64% of the total supply, were distributed this way to foster adoption. In the following years, other, bounty airdrop, programs were added to welcome more users,

and some of them are still available. Currently, you can earn free GBytes in Obyte by verifying your personal information through attestations. This process allows you to confirm details like your real name, email, or GitHub account using chatbots in the Obyte wallet. Depending on the type of attestation you complete, you can earn between $8 and $79 in GBBYTEs as a reward. These attestations also provide access to various applications within the Obyte ecosystem. Another way to earn some free GBYTEs is by participating in our Telegram quiz. By answering multiple-choice questions about Obyte correctly, you can earn at least $0.02 in GYTEs, paid as a text coin. It's an easy way to learn about Obite while gaining small rewards. Now, if you're interested in doing a bit more work,

we also have a grants program available for open-source projects that enhance our ecosystem. Everyone is welcome to participate. Featured vector image by Freepik Thank you for listening to this Hackernoon story, read by Artificial Intelligence. Visit hackernoon.com to read, write, learn and publish.