Ultimate Guide to NFT and Airdrops

Undoubtedly, investors have more interest in cryptocurrency and NFTs. As calls for a decentralized financial system grow louder, there will be greater demand for digital assets. How can Web 3.0-based projects grab the attention of the target audience? Organizing airdrop programs will help in attracting crypto and NFT enthusiasts. 

What is an airdrop?

It refers to the distribution of crypto-collectibles to a specific number of investors. Participants will hold the digital assets in their wallets for a certain duration. What happens after the completion of an airdrop program? Users can see information like the number of participants, number of winners, total airdrop amount, the start date, and the end date. Generally, winners are chosen after they complete certain tasks like downloading an app, referring friends, sharing news, liking and retweeting social media posts, and joining groups and channels. Later, the winners receive non-fungible tokens to their wallet address.

The factors to consider before taking part in an airdrop program are

Whitepaper – It is a comprehensive document that contains details like the problem to be solved, the opportunity in hand, the background of the team members, tokenomics, and the roadmap of the project. 

Website – Potential participants of an airdrop program must thoroughly go through the website of the project. It offers an overview of the incentives offered by the native token, the exclusive benefits provided to the token holders, names of the project founders, and key backers. 

Social media accounts – Generally, there is a lot of buzz and frenzied activity on the social media accounts ahead of an airdrop program. Hence, interested people can take part after seeing details of the giveaway, the rules of the contests, and the crypto exchanges where the tokens get listed. Before purchasing the token, investors must check the price, the trading volume, circulating supply, and market capitalization of the digital assets. 

What are the advantages offered by an airdrop program? 

Greater attention – Ahead of a full-fledged launch, projects require positive buzz. Airdrop programs uplift credibility. Community members who act as core supporters get free tokens.

More awareness – Amidst heavy competition in the Web 3.0 era, airdrops help in boosting awareness. The target audience gets access to important information of the project. This can lead to greater trading by investors which will result in a rise in the price of a token. Hence, conducting airdrops is a clever marketing tactic that works well for startups aiming to bootstrap their projects. 

Decentralized token distribution – Undoubtedly, pump-and-dump schemes and fake Initial Coin Offerings (ICOs) affect the reputation of projects. Sometimes, institutional investors may try to artificially inflate the price of the tokens. Airdrops prevent that by distributing tokens to investors in a decentralized manner. 

Participants must take a look at the allocation schedule ahead of the token generation event. It discloses information about the total supply, listing price, and the cost of the token during public and private sales. Generally, team members, advisors, shareholders, and founders of the project receive a specific percentage of tokens.

What are the current trends in NFT Airdrops?

In the last 30 days, NFT sales have surpassed $2.28 billion. This indicates that crypto collectibles have revolutionized the creator economy. Many NFT projects are distributing limited-edition collectibles to active supporters. 

NFT holders receive several benefits like zero trading fees on token swapping, discounts for using decentralized financial services, rewards for staking, and the absence of charges for processing transactions. Airdrop programs do not have any entry barriers. Users just need to possess a software wallet for participating in it. 

NFT Airdrops act as an effective promotional tool. It adds value to a project and also rewards members of a community. A balance is essential between using airdrops as a promotional tactic and creating utility for the token holders. 

Investors can protect themselves from scams and phishing attacks by avoiding airdrop programs that ask to pay fees or request for disclosure of personal information like private keys, passwords, and seed phrases.

In recent times, creators give away NFTs during the pre-sale campaign. Hence, users whose names are on the whitelist get exclusive access to valuable collectibles.

Conclusion 

As more innovative projects emerge in the metaverse, the number of airdrops will increase. Calling out artists, celebrities, influencers, and brands across the globe to distribute NFTs by organizing an airdrop program! Reach out to NFTICALLY, a leading white-label solution provider for launching your own NFT marketplace.