Crypto airdrops – a unique way for blockchain projects to distribute their coins to a wider audience. Each coin drop is like a hidden treasure waiting to be discovered, and the lucky recipient has a chance to delve into the world of cryptocurrency and potentially reap great rewards. But how exactly do these airdrops work? Below, we have prepared information about the types of airdrops, their well-known examples, and the principles of their functioning.

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Types of Airdrops

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Standard Airdrop

These are the most common airdrops, where coins are distributed to a specific group of crypto wallet addresses—projects target users who hold a specific cryptocurrency or have interacted with a particular platform.

• Uniswap: In 2020, Uniswap, a decentralized exchange, distributed 400 UNI tokens to every user who made a transaction on the platform at least once before September 1, 2020. This airdrop led to a significant increase in Uniswap's popularity and a sharp rise in the price of the UNI token.

• SushiSwap: SushiSwap, another decentralized exchange, distributed SUSHI tokens to users who held Ethereum (ETH) in their wallets as of September 1, 2020. This airdrop has generated much interest in SushiSwap and helped it become a competitor to Uniswap.

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Task-Based Airdrop

To receive these airdrops, users must complete specific tasks, such as following a project on social media, joining their Telegram group, or referring new users.

• Rally: Rally, a platform for decentralized governance, has conducted an airdrop of 1500 RLY tokens to users who registered on the platform, subscribed to its Twitter and Telegram channels, and invited friends. This airdrop helped Rally attract new users and expand its community.

• Coinbase: Coinbase, a popular crypto exchange, held an airdrop of Stellar Lumens (XLM) tokens to users who participated in a training course on XLM. This airdrop aimed to raise awareness about XLM and encourage Coinbase users to explore new cryptocurrencies.

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Hold-to-Earn Airdrop

Here, users simply need to hold a certain amount of another cryptocurrency in their wallet for a specific period to qualify for the airdrop.

• Reddcoin: Reddcoin, a blockchain-based social network, distributes RDD tokens to users who simply hold Reddcoin in their wallets. This airdrop is intended to encourage users to hold and use Reddcoin, which contributes to the overall value and liquidity of the token.
• Dash: Dash, a decentralized cryptocurrency, has an airdrop program that distributes 10% of the monthly DASH token issue to Masternode holders. Masternode is a type of decentralized server that supports the Dash network. This airdrop encourages users to run Masternodes, which makes the Dash network more secure and decentralized.

These are just a few examples of the many airdrops constantly held in cryptocurrency. The biggest perk is the chance to acquire new cryptocurrency tokens for free. Participating in airdrops can help you learn more about the project and its goals.

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Important note: Not all airdrops are legitimate. Be wary of projects asking for private keys or seed phrases in exchange for tokens. In some cases, airdropped tokens may be considered taxable income. Check with your local tax advisor for guidance.

By understanding these details, you can approach crypto airdrops with a healthy dose of skepticism and potentially discover valuable new projects in the exciting world of blockchain technology.

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