Airdrops can be particularly attractive to newcomers and inexperienced cryptocurrency users, as they provide an opportunity to acquire tokens without the need for investment. Airdrops are a way for crypto projects to build their communities and generate interest in their offerings. This article focuses on the challenges, ethics, and opportunities. The concepts discussed in this article derive from my individual experience and perspectives.
The Downsides
Many refer to airdrops as free money or easy money, but are they really free money? Are they easy to get? Let’s look at some negative sides of so-called easy money airdrops.
Firstly, hunting airdrops may require a lot of work. Some projects require users to complete multiple tasks which can be time-consuming.
Secondly, not all airdrops are worth the effort. Some projects may have a very low token value, making the effort to complete the tasks not worthwhile. In some cases, projects may have little to no value at all, making it a waste of time to participate in their airdrop.
Thirdly, there is the risk of getting hacked. Scammers often create fake airdrops to trick users into giving away their private keys or other sensitive information, resulting in the loss of tokens.
Lastly, it can take a long time to receive a good airdrop. Many projects require users to hold their tokens for a certain period of time before they can be traded or sold, which can tie up funds for an extended period. Therefore, airdrops inherently carry certain risks.
Sybil Farming
Another negative aspect of airdrops is the potential for Sybil attacks. A Sybil attack is when a user creates multiple accounts to take advantage of the same airdrop. This can harm the project and other real users by diluting the value of the tokens.
To prevent Sybil attacks and encourage genuine participation, it is recommended that users use only one wallet and behave as and be real users. This can help make the life of the projects and other real users easier by promoting genuine participation and creating a fair distribution of tokens.
However, having multiple wallets is not only acceptable, but it can also be a beneficial strategy to diversify your assets and mitigate risks. On the other hand, engaging in unethical practices such as using multiple wallets and performing similar tasks to farm airdrops is discouraged in my opinion. I personally use multiple wallets but for different purposes, and if I get airdrops on all my wallets, I’ll embrace it.
Unethical Promotions
You have probably come across headlines like "Did you miss the APT $100k airdrop?" or "Some people made $200k in ARB airdrop" on Twitter or other social channels. These titles may seem appealing, but they are often misleading and unethical. For instance, the claim that one could make $200k from the ARB airdrop is not entirely accurate because the maximum amount per wallet was only 10,250 ARB tokens. To achieve such a high airdrop, one would have to farm using multiple wallets which is unethical in my opinion. Therefore, such headlines are designed to farm engagement and promote Sybil farming, and they are often irrelevant and illogical. Moreover, even if someone did make $200k from an airdrop, it literally has nothing to do with the next one.
From Airdrops to Portfolio Growth
If you want to make money in Web3 as an airdrop hunter, it's important to target airdrops strategically. Instead of simply hoping for an airdrop and spending money aimlessly, try to become a real user of the protocols you're interested in and work to increase your assets. For instance, if you're a perpetual trader, consider using a decentralized perpetual protocol instead of a centralized exchange. Instead of making random transactions, you may profit from your trades. If an airdrop happens to come your way, you'll earn even more money. If not, you'll still have made a profit. By being strategic and intentional in your approach, you can make money while targeting crypto airdrops.
Another way to make money while targeting crypto airdrops is to use yield farming protocols. By staking or lending your assets, you can earn fees while also positioning yourself for any potential airdrops. For example, you could stake your tokens in a liquidity pool to earn a portion of the transaction fees generated by the protocol. This allows you to generate passive income while also potentially increasing your chances of receiving an airdrop, and there are many other opportunities. By focusing on building your assets through these kinds of activities, you can make the most of your time as an airdrop hunter and maximize your earning potential in Web3.
To conclude, airdrops have become a popular marketing strategy among cryptocurrency projects. While they offer an opportunity for users to acquire tokens without investing, there are negative aspects that users should be aware of. Some airdrops require a lot of work, while others may have little value or pose a risk of getting hacked. Additionally, Sybil farming and unethical promotions can harm the project and other real users. However, by being strategic and intentional in your approach, you can make money while targeting crypto airdrops.
About Alpha Drops
A free platform that compiles a curated list of early DeFi projects which have the potential to conduct airdrops upon their token launches. With over 180 tokenless projects listed, Alpha Drops serves as an invaluable resource for DeFi enthusiasts. Beyond being a resource, Alpha Drops also fosters a vibrant community of passionate DeFi users who actively engage and contribute to the ecosystem. Join Alpha Drops today to explore exciting DeFi opportunities and connect with fellow enthusiasts.
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