Airdrops have become commonplace in the crypto market. With so many crypto projects offering airdrops, choosing which ones to participate can be overwhelming. To help our users make informed decisions, we’ve researched and composed the ultimate airdrop guide for every airdrop type.

From ICO to Airdrop

ICO

In the early days of the cryptocurrency market, a common way to attract users was through Initial Coin Offerings (ICOs). This method allowed users to acquire tokens at a low price while the projects received funding to operate. It was an efficient, mutually beneficial fundraising strategy.

Well, it was mutually beneficial until one party broke the trust. As more projects conducted ICOs to raise initial capital, many users were left waiting for their tokens to soar in value, only to experience a rug pull as the project closed down.

This caused significant buyer losses, eventually casting a negative shadow over the ICO model. Over time, participants became more cautious about investing in ICOs, fearing the safety of their investments. This skepticism led to the failure of many projects right from the start.

As a result, projects had to find new ways to raise funds and attract users. Thus, the concept of airdrops was born.

Airdrop

An airdrop is a marketing tactic cryptocurrency projects use to distribute their tokens or coins to a wider audience, often for free, to increase awareness and adoption.

To qualify for an airdrop, users might need to meet specific criteria, such as holding a particular cryptocurrency, completing tasks like social media interactions, or participating in community activities. Once eligible, users receive the airdropped tokens directly in their cryptocurrency wallets.

The cost of participating in airdrops can vary widely, from very expensive to completely free. However, the risks for participants are generally lower compared to ICOs, as users often get to experience the product (even if only on the Testnet). This allows them to assess its potential before making an investment decision.

The Problem with Airdrops

However, airdrops are starting to follow the same path as ICOs from the past: initially high quality, but gradually increasing in quantity and decreasing in quality. Many projects promise airdrops, but after a period of hard work, users often end up with almost nothing.

In the next section, let’s explore the different types of airdrops in the market and see which one suits you the most.

Airdrop Guide: Types

There are many ongoing and promised airdrops. Upon analysis, two key factors determine the nature of an airdrop:

• Capital: The amount of money required for participation, which is often the biggest barrier for many users. The higher the capital needed, the higher the price.
• Effort: The time and energy participants need to invest to complete the airdrop tasks. The more effort, the more reward.

While it might seem that these two factors are too few to classify airdrops. However, based on experience, they are crucial in determining the participants’ scores, which in turn influence the rewards they receive.

Let’s see how we categorize them based on these criteria.

High Capital and High Effort

This category includes projects that demand a significant investment of both effort and capital from users to accumulate points. It stands out in sectors like NFTFi, SocialFi, and Spot DEXs, where rewards are based on performance. The more active the user, the more points they can gather.

• NFTFi

Leading the charge in integrating point systems into their products, projects like Blur and Tensor have successfully implemented point-based programs to boost trading volumes, driving both to notable success.

• SocialFi

Inspired by the NFTFi sector, SocialFi merges capital and user effort. Projects in this space require users to hold or trade collections and record their activities on the platform.

FriendTech and Fantasy are prime examples with their point (Point) programs, allowing users to earn money through platform interactions. Their point systems are unique but still maintain the principle of capital requirement.

• DEX

In the DEX sector, projects award points to users based on trading activities, including frequency, volume, and gas fees paid. This space usually imposes no point limits.

Projects like Jumper, Velar, Ambient, and Thruster use a linear point system, where points are distributed evenly among early and late participants based on the number of actions performed. This means that performing 10 trades on the first day earns the same points as performing 10 trades on the last day.

In summary, this group of projects demands both capital and effort, as these factors complement each other (the more trades, the higher the volume). This creates a point disparity among users, often dominated by those with larger capital.

High Capital and Low Effort

Projects in this category primarily award points based on the amount of money users deposit into the platform, so users don’t need to be very active to accumulate points. These point programs encourage users to keep their funds in the protocol for the long term.

For example, lending platforms often use a time multiplier in their point calculation formulas. This maintains stable liquidity and incentivizes users to hold their positions longer, contributing to overall protocol stability.

These projects typically attract “whales” – investors with substantial capital – due to the simplicity and rewards based on the amount deposited.

A notable example is Justin Sun, the founder of TRON, who deposited 120,000 ETH (equivalent to $480 million) into the ether.fi protocol. As a result, he received approximately 3.5 million ETHFI tokens, accounting for nearly 6% of the total airdrop.

Moderate Capital and Moderate/High Effort

Bridge projects typically encourage users to be actively engaged to boost overall trading volume. For example, Owlto Finance offers a 1.5x multiplier for users who perform over 100 transactions. This means that someone with 200 transactions and a volume of $1 million will earn more points than someone with just 10 transactions of the same volume.

The tasks in the Bridge sector are relatively straightforward, mainly revolving around volume, fees, and trading frequency. Users can choose low-cost chains to optimize their task completion. However, this also opens the door for bots, creating unfair competition for regular users.

Bridge projects generally present less risk than DEXs because after transferring assets, users don’t have to worry about price fluctuations as they would with swaps. This makes Bridge projects more attractive to those looking to farm airdrops without the risk of capital loss, ideal for those seeking stability while accumulating points.

Low Capital but High Effort

This group of protocols requires minimal capital but demands significant effort from users, encompassing projects like Layer 2, Perp DEX, and Wallets.

Perp DEX allows users to leverage small amounts of capital into larger sums, enabling them to compete more effectively with “whales.” Meanwhile, Layer 2 and Wallet projects only require a small transaction fee to participate.

Generally, these projects target new users, requiring little capital and involving relatively simple tasks. However, the point accumulation process leading up to token distribution often spans several years, necessitating patience from participants.

As a result, while these projects primarily demand effort rather than substantial financial investment, the airdrop value received might not be very high.

Minimal Capital and Minimal Effort

Projects that demand little in terms of capital and user activity often focus on simple tasks like social media interactions or sharing resources such as internet bandwidth and GPU power.

Among these, DePIN projects have stood out since their emergence in early 2024, continuing to grow in popularity. These projects typically require users to install an app, complete a few initial tasks, and maintain operations for a set period.

The point-based reward systems in this category, despite being relatively new, have proven highly successful in attracting large numbers of participants. A notable example is the Grass project, where users only need to keep a node running to earn significant airdrops without much additional effort.

Airdrop Guide: Winning Strategies

Depending on your resources, different airdrop strategies may be more suitable. Therefore, it is crucial to allocate your resources effectively to maximize airdrop profits.

If You Have a Lot of Capital

Projects in Staking, Restaking, Lending, and Liquid Restaking are ideal. These areas are currently very popular and attract significant investment from funds. As a result, airdrop values in these projects can range from a few hundred to tens of thousands of dollars with minimal activity required.

For example, EigenLayer has drawn significant investment from many “whales” and has provided impressive airdrop values. Similar projects include Karak and Solayer.

If You Have a Lot of Time

Projects like Perp DEX, Layer 2, and Wallet are more suitable since they require very little capital or even none at all. However, due to their simplicity and the large number of participants, the airdrop values may not be high. On the bright side, you can easily participate in multiple projects simultaneously.

You might want to check out Movement, currently in its testnet phase with $41.4 million in funding, or Sonic, which has announced an airdrop of 200 million S tokens.

If You Have Both Capital and Time

You might consider platforms related to NFTFi or Spot DEX. However, remember that these projects might impact your initial capital, so exercise caution when trading. For example, if you make a swap trade and the price drops significantly afterward, it could result in capital loss.

Some projects to look into include BSX Exchange and KiloEx.

If You Lack Both Capital and Time

Projects in the DePIN field might be ideal. All you need to do is install the platform’s application and run a node to qualify for an airdrop. These airdrops are often called “passive airdrops” or “rainfall airdrops,” highlighting that participants don’t need to spend or do much to receive rewards.

> 3 Promising Passive Airdrops – Easy, Free, and Effortless! – KEYRING PRO

Prominent names in the DePIN sector include Grass.io, which has already conducted its first airdrop and is currently tallying points for the next round. Other notable projects gaining significant attention are Nodepay, Blockmesh, and Dawn.

We’ve provided an analysis and a step-by-step guide on how to participate in the airdrop programs of these promising projects.

> Grass Airdrop – Anticipating Similar Exciting DePIN Projects – KEYRING PRO

Why Develop an Airdrop Hunting Strategy?

Creating a strategy for hunting airdrop coins helps you maximize the benefits from token distributions by various projects. With a clear plan, you can easily identify promising projects that match your capabilities, especially when hundreds of new names emerge daily, and point-based airdrops are used to reward user efforts.

Many projects have shifted to point-based airdrop systems, which encourage active participation and ensure fair distribution of rewards.

For instance, the competition between NFT marketplaces OpenSea and Blur highlights this shift: while OpenSea hasn’t issued tokens, Blur has seen significant growth thanks to its seasonal point system, encouraging users to stay engaged and participate actively. As a result, OpenSea’s market share has significantly declined.

Similarly, MetaMask is losing its user base to competitors like Rainbow and Rabby, which have implemented attractive point reward systems.

So, what strategy is best for both newcomers with limited funds and experienced users? Let’s explore with 5Money and find the right approach for you!

KEYRING PRO Wallet – Your Airdrop Managing Tools

Navigating the world of airdrops can be both straightforward and complicated. On one hand, the vast number of projects provides a wealth of opportunities. On the other hand, this abundance can be overwhelming, making it easy to pick the wrong projects to commit to.

Experienced airdrop hunters often use a different wallet address for each airdrop as a strategy to mitigate risk. This way, even if a project turns out to be a scam with malicious contracts, users can limit potential damage and safeguard their assets.

Enter KEYRING PRO Wallet, your all-in-one solution for managing airdrop participation:

• Multi-Chain Support: Easily create wallet addresses across multiple chains available in the market. If a chain isn’t listed, you can add it yourself.
• Labeling: Effortlessly label different wallet addresses for easy identification and management.
• Real-Time Price Tracker and Built-In Exchange: Track token prices and exchange tokens directly within the app.

Moreover, KEYRING is building an extensive ecosystem, providing numerous benefits to KEYRING PRO Wallet users.

Download the KEYRING PRO Wallet now and experience these fantastic features firsthand.