When normies and even some crypto purists hear us talking about airdrop farming they think we’re a bunch of lazy freeloaders looking for handouts.
No doubt, there’re a lot of people doing airdrop farming with this mindset but that does not define airdrop farming generally as you’ll soon learn.
Your understanding of crypto airdrops is about to change completely with this post.
What are crypto airdrops?
Airdrop is the distribution of a project’s token to a certain group of people based on specific criteria.
It could be people who interacted with the project in the past, joined and participated in its community activities, or whatever criteria they decide to use in determining the beneficiaries.
Why do projects do airdrops?
Projects do airdrops to attract (new) users, incentivize early adoption, or build and grow their community.
The airdrops are used to gain the attention of users who otherwise might never know about the project.
Yes, some people will claim the airdrop and never use or invest in the project but many others will stay as users, community members, or investors.
Where does airdrops money come from?
The money you receive from airdrops mostly comes from the marketing budget of the project. This fund is usually used to provide liquidity which enables you to sell your airdrop tokens.
In some cases, it could come from the funds raised during the airdrop campaign as many of these airdrops charge a fee for certain activities during the program.
This money is then used to provide liquidity to facilitate trading of the token after TGE (token generation event) and listing.
More so, many projects generate revenue from partnerships and ads by monetizing the traffic and attention their airdrop program attracts.
Project teams are getting smarter and many are using the airdrop campaign itself to raise funds and bootstrap liquidity for the token.
Should you farm crypto airdrops?
Yes, if the time or effort it takes and the potential reward are worth it for you. Otherwise, you should pass or find the one that will be worth it for you.
But remember, airdrops are a form of crypto investments where the currency you spend is your time, effort, or attention.
And in today’s digital world, attention is the real gold. That’s why I always advise you to focus on farming high-value airdrops only to maximise your returns.
Why airdrop farming is perfect for normies
I usually recommend airdrop farming for normies who want to begin exploring crypto as it gives them the opportunity to learn and earn some free crypto for a start without risking their own money immediately.
Also, many of them either don’t have cash to invest or are too scared of losing their money.
So, airdrop farming is a good start for them as it comes with zero financial risk and gives them invaluable exposure to the crypto market.
If you’re new to crypto, airdrop farming is a good way to begin learning, exploring, and earning some crypto on the side with zero financial risk.