General
Airdrop
Free distribution of cryptocurrency tokens to wallet addresses, usually as a marketing strategy or to reward early users of a protocol.
Last updated: January 5, 2025
What is an Airdrop?
An airdrop is a distribution of free cryptocurrency tokens directly to wallet addresses. Projects use airdrops to:
- Reward early users
- Increase token distribution
- Generate marketing buzz
- Build community
Types of Airdrops
Standard Airdrop
- Sign up with email/wallet
- Follow social media accounts
- Complete simple tasks
Holder Airdrop
- Own specific tokens
- Snapshot taken at certain time
- Tokens sent automatically
Retroactive Airdrop
- Reward past protocol users
- No action needed if qualified
- Often most valuable
Fork Airdrop
- New chain splits from existing
- Holders get equal new tokens
- Example: Bitcoin Cash from Bitcoin
Famous Airdrops
| Project | Year | Value at Peak |
|---|---|---|
| Uniswap (UNI) | 2020 | $10,000+ per user |
| ENS | 2021 | $10,000-50,000+ |
| Arbitrum (ARB) | 2023 | $1,000-10,000+ |
| Jupiter (JUP) | 2024 | $500-5,000+ |
How to Qualify for Airdrops
Active Protocol Use
- Use DeFi protocols early
- Make swaps, provide liquidity
- Bridge assets across chains
Governance Participation
- Vote on proposals
- Delegate tokens
- Join DAOs
Community Involvement
- Discord activity
- Forum contributions
- Testing new features
Hold Relevant Tokens
- Governance tokens
- NFT collections
- Stablecoins on new chains
Airdrop Farming
What is It?
Actively positioning for potential airdrops by:
- Using unannounced protocols
- Meeting likely eligibility criteria
- Maintaining activity over time
Strategies
- Use new L2s and bridges
- Try new DeFi protocols
- Maintain consistent activity
- Don’t Sybil (multiple wallets)
Risks
- Gas costs may exceed airdrop value
- No guarantee of airdrop
- Anti-Sybil measures may disqualify you
How to Claim Airdrops
Typical Process
- Connect wallet to claim site
- Verify eligibility
- Sign transaction (no ETH sent)
- Receive tokens
Safety Checklist
- Verify official website URL
- Never share seed phrase
- Check contract on Etherscan
- Use fresh wallet if unsure
- Don’t approve unlimited spending
Airdrop Scams
Red Flags
- Asks for seed phrase
- Requires sending crypto first
- Unsolicited DMs about free tokens
- Unofficial websites
- Too good to be true amounts
Protecting Yourself
- Only use official links
- Verify on official Twitter/Discord
- Never share private keys
- Use hardware wallet for claims
Tax Implications
In Most Jurisdictions
- Airdrops are taxable income
- Value at time of receipt
- May also owe capital gains later
Record Keeping
- Note the date received
- Value at receipt time
- Track cost basis
Finding Airdrop Opportunities
Resources
- DeFi protocols without tokens
- New L2 chains
- Airdrop tracking sites
- Crypto Twitter/X
Exchange Airdrops
Exchanges like Binance sometimes distribute airdrop tokens to users who hold certain assets, making it easier to receive without manual claiming.
Airdrop Timeline
Typical Sequence
- Protocol launch - No token yet
- Usage period - Users interact
- Snapshot - Eligibility determined
- Announcement - Airdrop revealed
- Claim period - Users claim tokens
- Expiration - Unclaimed tokens lost
Tips for Airdrop Hunters
- Use protocols because they’re useful
- Don’t spend more on gas than potential value
- Maintain consistent activity
- Join discords for alpha
- Be patient—cycles take time
- Keep private keys secure
Ready to Start Trading?
Now that you understand airdrop, explore the best exchanges to begin your crypto journey.