What are Crypto Airdrops and How to Get Them?
In this section, we’re going to find out what is an airdrop in crypto!
Whenever a new crypto airdrop is announced, oftentimes, the news about it begins spreading like wildfire. The whole crypto hive gets buzzing, since this means that a new opportunity to invest has just been found.
Yet, as always, life is not what it initially seems. Sometimes, airdrops can get too technical, too confusing, too time-consuming, or simply - an attempt at scamming people. You have to be well-versed in order not to get lost in the airdrop crypto jungle. That’s exactly what I’m here to help you with!
We’ll begin by addressing the question of what is a crypto airdrop, then move on and explore the reasons behind why crypto projects organize them, in the first place. Eventually, we’ll look deeper into some successful, famous examples of crypto airdrops from the past. In the end, you’ll have a much better understanding of what are crypto airdrops!
Let’s begin!
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Video Explainer: What are Crypto Airdrops and How to Get Them?
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What is a Crypto Airdrop & How to Get FREE Coins? (Animated)
What is an Airdrop in Crypto?
To start off, let’s define crypto airdrops.
In crypto, this term refers to distributing assets (be it coins or tokens) to a large number of individuals. Both cryptocurrencies, as well as NFTs can be airdropped. Just like a friend can airdrop a picture from their travels directly to you, so can crypto projects airdrop you free stuff. But, when it comes to crypto, airdropping takes more than simply having an iPhone.
So, in order to receive these crypto airdrops, users must become eligible to claim them. This requires taking certain actions that, in turn, help generate interest and awareness about the project.
Here, consider this simple analogy to understand how crypto airdrops work. Your friend is moving out this weekend. You realize that it’s a draining process, and that extra hands would never hurt in a situation like this. You offer to give them a ride, help them move their stuff from their old place into the new one. You help them now, so eventually, when they’re all set up in their new apartment, they invite you for dinner. You helped them in an early stage of their life or a project, so now, once they’ve gained speed, they reward you.
You could put it this way - the invitation for dinner was “the airdrop”. Only selected and eligible recipients received it. Now, imagine this on a larger scale. People who helped test a new project, reported bugs, tried out new services (while the project was in its beginning phases), receive airdrops as a reward for their efforts, and as a point that it pays for being loyal to a particular company, brand, or blockchain.
Airdrops are more than just a reward for user loyalty, though. They’re also a clever way of conducting marketing. You see, “people claiming airdrops” translates to ”people getting free money”. It makes the word spread around, people begin to talk about it, everyone wants to be among those who can receive an airdrop.
Naturally, it can catapult the project behind the airdrop into the spotlight. This is publicity, people get to know, recognize, and remember the company’s name. That’s known as “the network effect”.
A very down-to-earth example could be this. John wants to go out and get himself a coffee. One coffee shop offers a deal: “If you buy coffee from us 4 times in a row, you’ll get the 5th one for free”. John chooses this place, being sure that he’ll return there and claim his free coffee eventually. He recommends this to his friends. The free coffee, which plays the role of the reward, is received, and the word is out there.
Making Money With Crypto Airdrops
Okay, that’s the theory. Let’s move on to the practice - it’s the most exciting part, since there are plenty of stories of how successful airdrop campaigns really ended up in companies boosting their brand awareness, and users boosting the contents of their wallets.
So, people make money with airdrops. But it all begins with receiving free tokens (or coins). The project may eventually take off, its value would increase, and thus, the value of the token would grow, as well.
For fast money, recipients simply go to crypto exchanges and sell or trade the tokens, and end up pocketing the profits. It’s like selling a valuable Christmas gift that you received. Except there’s no guilt involved.
While there are some recent successful examples, let’s take a look at where it all began. Crypto airdrops became a thing in 2014. Out of all places, it actually began in Iceland.
The first crypto airdrop was organized by Auroracoin. The idea behind Auroracoin was to create an asset that would also be the national digital currency of Iceland. It was launched in February 2014, and airdropping free Auroracoins to citizens of the country was the plan of how to popularize it. 50% of the total Auroracoin supply was intended to be distributed to the country’s residents.
So, that’s literally free money. Sounds a bit too good to be true. And, well, unfortunately, it was.
The airdrop took place on March 25, 2014. Every Icelandic citizen was eligible to receive 31.8 Auroracoins (around $12 at that time). In order to claim the airdrop, people had to submit their identification numbers. That’s it. Yet… it was too much for the project to take off.
The Auroracoin price dropped pretty quickly. This reduced people’s interest in the coin, and the project overall. This, in turn, led to Auroracoin’s eventual demise.
Many lessons were learned, however. The buzz was generated, the interest was raised, the whole thing was widely covered by the media. Private companies kept their eyes peeled, and took notes.
In 2017 Binance, a then newly-established centralized crypto exchange, decided to give this strategy a try. Binance distributed 500 BNB tokens to anyone who simply signed up for the airdrop.
Here’s the math behind it. The BNB token was worth around $0.10 at that time. So, everyone received around $50 worth of crypto. On the 5th of April, 2021, BNB was worth $676. So, those who held on to their 500 BNB tokens, were able to sell them for over $330,000. This pretty much illustrates why airdrops are so beloved among the community.
Not even mentioning the fact that, thanks to innovative marketing approaches like this, Binance was able to catapult itself into the eye of the crypto public, and cemented itself as the leading crypto exchange in the world.
By the way, if you feel like updating your knowledge about centralized exchanges, and how they work, be sure to check out this section that covers the topic extensively!
After such success stories, airdrops got more and more popular. Names such as Optimism, Blur, and Uniswap tried their luck with airdrops. And, they were successful. But there are always two sides to a coin.
As usual, when something gets popular because various opportunists begin jumping aboard the hype train, malicious people tend to blend in, as well.
Therefore, it’s not surprising that many people started reporting negative experiences after trying to receive an airdrop. Particular risks became associated with airdrops, especially the ones organized by obscure projects.
For example, some airdrops may require you to share your personal or wallet information with unknown sources. This could expose you to phishing attacks, identity theft, or other forms of hacks. It’s vital to be 100% sure about how valid a particular airdrop is.
Another risk is that some airdrops may be part of “pump-and-dump” schemes, where the token price is artificially inflated, and then dumped by the creators or early investors.
Or, in other cases, disappointment can arise from receiving only the so-called “dust” of an airdrop. This happens when the team behind the project launches their product, or a coin, and its value plummets instantly. In this case, the value of the airdrop falls dramatically, as well, and users end up receiving a sad-looking addition to their wallet.
How to Get an Airdrop?
Nevertheless, all of that doesn't deny the fact that airdrops can be a successful and profitable strategy for both: the company, and the user.
Therefore, choosing the right project, qualifying as eligible for their airdrops, and simply being prepared is the key to being among the first ones to receive the most valuable airdrops. But the question arises: “how do you get an airdrop?”
The simple answer is that the criteria for being eligible for an airdrop can vary greatly from project to project. It can range from simply following a project's social media accounts, holding a specific token, to being an early adopter and regularly using the platform, such as a DEX, or a particular NFT marketplace.
The key is to pay attention to the specific requirements of each project, as they can change over time. It's important to do your own research and understand the risks before participating in an airdrop. Keeping all of this in mind will greatly reduce the chances of participating in fake, scammy projects and wasting your time.
Wrapping Up
To sum up, I’ve answered the questions of “what is an airdrop?”, “what’s the crypto airdrop meaning?”, and “how can people potentially make money thanks to crypto airdrops?”. Similar to many good things in life, crypto airdrops can be exciting and rewarding, but they also come with some pitfalls.
Nevertheless, strategic companies will continue increasing their brand awareness, and expanding their communities thanks to well-organized airdrops. Same goes for users, who, while remaining cautious and calculating, will avoid scams and poorly-prepared airdrops.
And that brings us to the point where it’s time to call it a wrap! I hope you learned a thing or few, and from now on, the question “what is an airdrop?” will not bother you anymore.
For a beginner, they all mean the same thing - <em>confusion<\/em>. What do these abbreviations even stand for? In my the previous sections, I’ve covered various DeFi elements, such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-blockchain/">blockchains, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-dapps-in-crypto/">dApps, and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-do-cryptocurrency-exchanges-work/">cryptocurrency exchanges<\/strong><\/a>. Today, I shall concentrate on how many of these companies and projects got their start. In many cases, it was thanks to an ICO, IEO, or IDO!<\/p>\n<p>As you’ll see, <strong>these processes provide different benefits, just as they all have their own, unique drawbacks<\/strong>. They’re a cause for debate, since there’s no right answer about which one is the best way of conducting the initial stages of raising capital and starting a DeFi project.<\/p>\n<p>In this section, we’re going to define and discuss ICO vs IDO vs IEO. Specifically, we’ll talk about what every one of these terms mean, what’s their purpose, when and why were they created, and what’s their role in the overall bigger picture of the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-defi/">DeFi world.<\/p>\n<p><em>Let’s jump straight to it!<\/em><\/p>\n<h2>What is ICO?<\/h2>\n<p>Let’s begin by answering, <em>“what is ICO?”.<\/em> Well, for starters, <strong>ICO abbreviates as an “Initial Coin Offering”<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Initial Coin Offering.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-01.jpg/" alt=\"ICO vs IDO: Initial Coin Offering.\" width=\"1000\" height=\"583\" \/><\/p>\n<p>In order to understand its role, consider this example - it will give you more than a dry theoretical definition of this term:<\/p>\n<p>It’s 2014. And this is Mark. He’s only 19 years old, but he’s a brilliant, promising guy who has revolutionary ideas brewing up in his mind. He’s been eyeing the crypto world closely, he sees the potential that <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin has, and how important the blockchain impact on the world might be.<\/p>\n<p><strong>Mark understands that Bitcoin offers a radical new approach towards money<\/strong>, and how the international monetary system should look like. It’s a game-changing innovation that introduces decentralized payments, and aims to give people back their power over their money and information.<\/p>\n<p>Mark is a smart fellow. He realizes that Bitcoin’s core decentralized architecture, the blockchain technology, could become a very powerful tool that could be put to use to make the whole world a better place. From financial apps, to gaming, or data storing - it could be used to transform the world as we know it.<\/p>\n<p>Okay, so Mark comes up with an idea. Now, in order to make it happen, he needs a strong team, and… money. <em>Lots of money. <\/em>Where does he get it from? <em>Fundraising.<\/em> But, it’s crypto we’re talking about here. <strong>So, Mark goes and organizes an ICO, an Initial Coin Offering, with hopes that it will attract investors. <\/strong>Everything goes according to plan, and Mark ends up with a newly-raised $18 million.<\/p>\n<p>In case this sounds very familiar… This story did indeed happen, and everything here is true. Except for the fact that Mark’s real name isn’t Mark. It’s <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//who-is-vitalik-buterin/">Vitalik Buterin<\/strong><\/a>, who came up with the idea to expand the practical applications of blockchain tech back in 2014, and, thanks to a well-orchestrated ICO, ended up creating Ethereum.<\/p>\n<p><strong>So, ICOs in crypto are a way of fundraising capital for promising crypto startups.<\/strong> But how do they look in real life?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: How do ICOs happen?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-02.jpg/" alt=\"ICO vs IDO: How do ICOs happen?\" width=\"1000\" height=\"534\" \/><\/p>\n<p>Organizing an ICO usually consists of the following stages. <strong>First of all, a company prepares a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-whitepaper/">whitepaper. It’s an official document that states their vision, their mission, the technical part of their project, and the reasoning why it’s going to be something that’s better not to miss out on.<\/p>\n<p>Once the whitepaper is complete, the team begins <strong>looking for potential investors<\/strong>. They send them their whitepaper, pitch their idea, and try to convince them to support the project.<\/p>\n<p>Then, after they find eager investors, the actual ‘coin offering’ part takes place. <strong>The startup issues their own tokens, and sells them to their investors.<\/strong><\/p>\n<p>What makes the ICO crypto concept attractive is the fact that, in case the company was to truly achieve their goal, their own native token would increase in value, thus allowing investors to profit from the coins they obtained during the ICO.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: The ICO boom.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-03.jpg/" alt=\"ICO vs IDO: The ICO boom.\" width=\"1000\" height=\"566\" \/><\/p>\n<p>Here are some other notable ICOs that contributed to the popularity of this way of fundraising. In 2017, the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-binance-coin-bnb/">Binance Coin<\/strong><\/a> raised <strong>$15 million<\/strong>. The same year, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-chainlink-link/">Chainlink, a decentralized oracle network, raised <strong>$32 million<\/strong> through an ICO.<\/p>\n<p>As you can see, the numbers here are far from pocket money. But nothing comes close to the ICO held by <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-eos/">EOS, the blockchain protocol, which raised over <strong>$4 billion<\/strong> in 2018.<\/p>\n<p>Obviously, such success stories inspired others. 2017 became known as the year of <strong>\"the ICO boom\"<\/strong>. During this year, more than 4,000 ICOs were organized, and over $22 billion was raised! People sensed that this is the new goldmine, and everyone flocked in to cash out on this new trend.<\/p>\n<p>Unfortunately, it’s not only honest, hard-working people who grabbed this opportunity. Many scammers made history by organizing well-covered thefts in the shape of ICOs.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Ponzi scheme.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-05.jpg/" alt=\"ICO vs IDO: Ponzi scheme.\" width=\"1000\" height=\"691\" \/><\/p>\n<p><strong>The infamous Bitconnect<\/strong> launched their ICO back in 2016, and raised $2.5 million by selling their <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//bitconnect-bcc-price/">BCC token<\/strong><\/a> to gullible investors. <strong>Pincoin<\/strong> <strong>is yet another example<\/strong> of bad people ruining the reputation of good things.<\/p>\n<p>The team behind Pincoin promised investors high returns on their investment in exchange for buying tokens. However, most people would tell you that it was nothing but a well-decorated <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-ponzi-scheme/">Ponzi scheme<\/strong><\/a>. The project collapsed, and the founders fled the country with all the investors’ funds in their pockets.<\/p>\n<p>It became clear. <strong>ICOs are a rather dangerous way of trusting one’s money to a crypto startup. <\/strong>Something new had to be offered. And it was. A new way of fundraising was created.<\/p>\n<h2>What’s an IEO?<\/h2>\n<p>Suddenly, IEOs became a thing. <strong>The abbreviation stands for “Initial Exchange Offering”<\/strong>, and, as you can probably tell from the name, it refers to <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//best-cryptocurrency-exchange/">exchanges being involved with it. And for a reason. A platform was needed to organize the fundraising procedure, and make it more difficult for scammers and malicious people to organize their fraudulent projects.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Initial Exchange Offering.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-06.jpg/" alt=\"ICO vs IDO: Initial Exchange Offering.\" width=\"1000\" height=\"569\" \/><\/p>\n<p>Just like ICOs vs IDOs, <strong>IEOs are also a way of fundraising<\/strong>. The ‘Exchange’ here refers to a cryptocurrency exchange. It plays the role of an intermediary between the two participating sides. The people behind the project <em>(the ones who need the money)<\/em>, and the investors <em>(the ones who have the money)<\/em>.<\/p>\n<p><strong>It was the first quarter of 2019, when IEOs started gaining popularity.<\/strong><\/p>\n<p>In its essence, IEOs are very similar to ICOs, except for the fact that there’s a platform, provided by an unbiased third party, which employs security measures, thus making the whole deal more trustworthy and transparent. By extent, it became more appealing to investors, who, at that time, had become a lot more cautious about investing in crypto projects.<\/p>\n<p>Here, let’s take a look at some notable examples of successful IEOs.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: The BitTorrent IEO held through the Binance Launchpad.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-08.jpg/" alt=\"ICO vs IDO: The BitTorrent IEO held through the Binance Launchpad.\" width=\"1000\" height=\"541\" \/><\/p>\n<p>In 2019, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//bittorrent-new-btt-price/">BitTorrent raised $7.2 million in less than 15 minutes. The IEO was organized and took place on the <strong>Binance Launchpad<\/strong>. This is a platform provided by <a href=https://www.bitdegree.org/"//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, the crypto exchange, created solely for IEOs.<\/p>\n<p>Another example could be <strong>Huobi Prime's IEO for the TOP Network<\/strong>. It resulted in $8.3 million raised in 19 seconds! As you can tell from the event’s name, the IEO was held on the crypto exchange <a href=https://www.bitdegree.org/"//crypto//goon//huobi/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Huobi<\/strong><\/a>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Huobi Prime's IEO for the TOP Network.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-09.jpg/" alt=\"ICO vs IDO: Huobi Prime's IEO for the TOP Network.\" width=\"1000\" height=\"682\" \/><\/p>\n<p>But a new problem arose. In certain cases, <strong>not everyone was able to participate in the token acquisition<\/strong>. Exchanges began limiting who could participate in IEOs by, for example, introducing various requirements. They could have ranged from asking users to have an account on the exchange, hold the exchange’s native tokens, or meet trading volume requirements. The same applied to projects which may have wanted to organize their IEO on a particular exchange.<\/p>\n<p>Once again, the world of fundraising models needed something new.<\/p>\n<h2>What is IDO?<\/h2>\n<p>So, that’s where IDOs in crypto became a thing. <strong>An “IDO” is an “Initial DEX Offering,”<\/strong> where “DEX” stands for “<a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-decentralized-exchange-dex/">Decentralized Exchange<\/strong><\/a>”. If you feel like refreshing your knowledge on what DEXs are, and how they are different from centralized exchanges, be sure to check a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">section dedicated to this topic<\/strong><\/a>!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Initial DEX Offering.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-11.jpg/" alt=\"ICO vs IDO: Initial DEX Offering.\" width=\"1000\" height=\"596\" \/><\/p>\n<p>Now, the debate of ICO vs IDO in crypto, just like the one of IDO vs IEO, goes on. After all, <strong>they’re all just different fundraising mechanisms for crypto startups<\/strong>. But, this time, the action takes place not on a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-centralized-exchange-cex/">centralized exchange<\/strong><\/a>, <em>but… <\/em>you guessed it, a decentralized one.<\/p>\n<p>The competition of ICO vs IDO vs IEO is a real thing because they are all ways of allowing startups to raise capital by selling tokens to investors. With IDOs, the whole process takes place on a DEX, thus solving the problems that arise with ICOs and IEOs - namely, a lack of transparency, safety, or participation requirements.<\/p>\n<p><strong>IDOs really decentralize the whole fundraising process. <\/strong>A <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//best-cryptocurrency-wallet/">crypto wallet<\/strong><\/a> and an internet connection were the main conditions to contribute to the fundraiser campaign.<\/p>\n<p>Suddenly, projects were able to market their products to the whole community, instead of selected accredited investors. You can look at this as a <strong>‘GoFundMe’ version of DeFi<\/strong>, since, at its very essence, IDOs work in a very similar way.<\/p>\n<p>Apart from that, IDOs allow projects to experiment and see for themselves what the market demand for their newly-issued token is. These tokens aren’t listed on centralized exchanges at the time of the IDO, so truly enthusiastic investors can begin trading them on DEXs before they get listed on a centralized platform.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Balancer and Uniswap IDOs.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-14.jpg/" alt=\"ICO vs IDO: Balancer and Uniswap IDOs.\" width=\"1000\" height=\"483\" \/><\/p>\n<p>Here are some real-life examples. In August 2020, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//ocean-protocol-ocean-price/">Ocean Protocol<\/strong><\/a>, a data exchange protocol, raised $1.8 million on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//top-crypto-exchanges//balancer-v2/">Balancer. Or, in October 2020, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//polkastarter-pols-price/">Polkastarter, a decentralized protocol, raised $775k on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//top-crypto-exchanges//uniswap-v3/">Uniswap./n For a beginner, they all mean the same thing - <em>confusion<\/em>. What do these abbreviations even stand for? In my the previous sections, I’ve covered various DeFi elements, such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-blockchain/">blockchains, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-dapps-in-crypto/">dApps, and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-do-cryptocurrency-exchanges-work/">cryptocurrency exchanges<\/strong><\/a>. Today, I shall concentrate on how many of these companies and projects got their start. In many cases, it was thanks to an ICO, IEO, or IDO!<\/p>\n<p>As you’ll see, <strong>these processes provide different benefits, just as they all have their own, unique drawbacks<\/strong>. They’re a cause for debate, since there’s no right answer about which one is the best way of conducting the initial stages of raising capital and starting a DeFi project.<\/p>\n<p>In this section, we’re going to define and discuss ICO vs IDO vs IEO. Specifically, we’ll talk about what every one of these terms mean, what’s their purpose, when and why were they created, and what’s their role in the overall bigger picture of the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-defi/">DeFi world.<\/p>\n<p><em>Let’s jump straight to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)\"\n title=\"ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: ICO vs IDO vs IEO: Which One is the One?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"ICO vs IDO vs IEO: Which One is the One?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"hKPJx_u9Zc8\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/ico-vs-ido-vs-ieo-which-ones-the-best-easily-explained.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/ico-vs-ido-vs-ieo-which-ones-the-best-easily-explained.jpg?tr=w-760 1000w\"\n alt=\"ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)\"\n title=\"ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What is ICO?<\/h2>\n<p>Let’s begin by answering, <em>“what is ICO?”.<\/em> Well, for starters, <strong>ICO abbreviates as an “Initial Coin Offering”<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Initial Coin Offering.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-01.jpg/" alt=\"ICO vs IDO: Initial Coin Offering.\" width=\"1000\" height=\"583\" \/><\/p>\n<p>In order to understand its role, consider this example - it will give you more than a dry theoretical definition of this term:<\/p>\n<p>It’s 2014. And this is Mark. He’s only 19 years old, but he’s a brilliant, promising guy who has revolutionary ideas brewing up in his mind. He’s been eyeing the crypto world closely, he sees the potential that <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin has, and how important the blockchain impact on the world might be.<\/p>\n<p><strong>Mark understands that Bitcoin offers a radical new approach towards money<\/strong>, and how the international monetary system should look like. It’s a game-changing innovation that introduces decentralized payments, and aims to give people back their power over their money and information.<\/p>\n<p>Mark is a smart fellow. He realizes that Bitcoin’s core decentralized architecture, the blockchain technology, could become a very powerful tool that could be put to use to make the whole world a better place. From financial apps, to gaming, or data storing - it could be used to transform the world as we know it.<\/p>\n<p>Okay, so Mark comes up with an idea. Now, in order to make it happen, he needs a strong team, and… money. <em>Lots of money. <\/em>Where does he get it from? <em>Fundraising.<\/em> But, it’s crypto we’re talking about here. <strong>So, Mark goes and organizes an ICO, an Initial Coin Offering, with hopes that it will attract investors. <\/strong>Everything goes according to plan, and Mark ends up with a newly-raised $18 million.<\/p>\n<p>In case this sounds very familiar… This story did indeed happen, and everything here is true. Except for the fact that Mark’s real name isn’t Mark. It’s <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//who-is-vitalik-buterin/">Vitalik Buterin<\/strong><\/a>, who came up with the idea to expand the practical applications of blockchain tech back in 2014, and, thanks to a well-orchestrated ICO, ended up creating Ethereum.<\/p>\n<p><strong>So, ICOs in crypto are a way of fundraising capital for promising crypto startups.<\/strong> But how do they look in real life?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: How do ICOs happen?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-02.jpg/" alt=\"ICO vs IDO: How do ICOs happen?\" width=\"1000\" height=\"534\" \/><\/p>\n<p>Organizing an ICO usually consists of the following stages. <strong>First of all, a company prepares a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-whitepaper/">whitepaper. It’s an official document that states their vision, their mission, the technical part of their project, and the reasoning why it’s going to be something that’s better not to miss out on.<\/p>\n<p>Once the whitepaper is complete, the team begins <strong>looking for potential investors<\/strong>. They send them their whitepaper, pitch their idea, and try to convince them to support the project.<\/p>\n<p>Then, after they find eager investors, the actual ‘coin offering’ part takes place. <strong>The startup issues their own tokens, and sells them to their investors.<\/strong><\/p>\n<p>What makes the ICO crypto concept attractive is the fact that, in case the company was to truly achieve their goal, their own native token would increase in value, thus allowing investors to profit from the coins they obtained during the ICO.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: The ICO boom.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-03.jpg/" alt=\"ICO vs IDO: The ICO boom.\" width=\"1000\" height=\"566\" \/><\/p>\n<p>Here are some other notable ICOs that contributed to the popularity of this way of fundraising. In 2017, the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-binance-coin-bnb/">Binance Coin<\/strong><\/a> raised <strong>$15 million<\/strong>. The same year, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-chainlink-link/">Chainlink, a decentralized oracle network, raised <strong>$32 million<\/strong> through an ICO.<\/p>\n<p>As you can see, the numbers here are far from pocket money. But nothing comes close to the ICO held by <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-eos/">EOS, the blockchain protocol, which raised over <strong>$4 billion<\/strong> in 2018.<\/p>\n<p>Obviously, such success stories inspired others. 2017 became known as the year of <strong>\"the ICO boom\"<\/strong>. During this year, more than 4,000 ICOs were organized, and over $22 billion was raised! People sensed that this is the new goldmine, and everyone flocked in to cash out on this new trend.<\/p>\n<p>Unfortunately, it’s not only honest, hard-working people who grabbed this opportunity. Many scammers made history by organizing well-covered thefts in the shape of ICOs.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Ponzi scheme.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-05.jpg/" alt=\"ICO vs IDO: Ponzi scheme.\" width=\"1000\" height=\"691\" \/><\/p>\n<p><strong>The infamous Bitconnect<\/strong> launched their ICO back in 2016, and raised $2.5 million by selling their <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//bitconnect-bcc-price/">BCC token<\/strong><\/a> to gullible investors. <strong>Pincoin<\/strong> <strong>is yet another example<\/strong> of bad people ruining the reputation of good things.<\/p>\n<p>The team behind Pincoin promised investors high returns on their investment in exchange for buying tokens. However, most people would tell you that it was nothing but a well-decorated <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-ponzi-scheme/">Ponzi scheme<\/strong><\/a>. The project collapsed, and the founders fled the country with all the investors’ funds in their pockets.<\/p>\n<p>It became clear. <strong>ICOs are a rather dangerous way of trusting one’s money to a crypto startup. <\/strong>Something new had to be offered. And it was. A new way of fundraising was created.<\/p>\n<h2>What’s an IEO?<\/h2>\n<p>Suddenly, IEOs became a thing. <strong>The abbreviation stands for “Initial Exchange Offering”<\/strong>, and, as you can probably tell from the name, it refers to <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//best-cryptocurrency-exchange/">exchanges being involved with it. And for a reason. A platform was needed to organize the fundraising procedure, and make it more difficult for scammers and malicious people to organize their fraudulent projects.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Initial Exchange Offering.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-06.jpg/" alt=\"ICO vs IDO: Initial Exchange Offering.\" width=\"1000\" height=\"569\" \/><\/p>\n<p>Just like ICOs vs IDOs, <strong>IEOs are also a way of fundraising<\/strong>. The ‘Exchange’ here refers to a cryptocurrency exchange. It plays the role of an intermediary between the two participating sides. The people behind the project <em>(the ones who need the money)<\/em>, and the investors <em>(the ones who have the money)<\/em>.<\/p>\n<p><strong>It was the first quarter of 2019, when IEOs started gaining popularity.<\/strong><\/p>\n<p>In its essence, IEOs are very similar to ICOs, except for the fact that there’s a platform, provided by an unbiased third party, which employs security measures, thus making the whole deal more trustworthy and transparent. By extent, it became more appealing to investors, who, at that time, had become a lot more cautious about investing in crypto projects.<\/p>\n<p>Here, let’s take a look at some notable examples of successful IEOs.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: The BitTorrent IEO held through the Binance Launchpad.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-08.jpg/" alt=\"ICO vs IDO: The BitTorrent IEO held through the Binance Launchpad.\" width=\"1000\" height=\"541\" \/><\/p>\n<p>In 2019, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//bittorrent-new-btt-price/">BitTorrent raised $7.2 million in less than 15 minutes. The IEO was organized and took place on the <strong>Binance Launchpad<\/strong>. This is a platform provided by <a href=https://www.bitdegree.org/"//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, the crypto exchange, created solely for IEOs.<\/p>\n<p>Another example could be <strong>Huobi Prime's IEO for the TOP Network<\/strong>. It resulted in $8.3 million raised in 19 seconds! As you can tell from the event’s name, the IEO was held on the crypto exchange <a href=https://www.bitdegree.org/"//crypto//goon//huobi/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Huobi<\/strong><\/a>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Huobi Prime's IEO for the TOP Network.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-09.jpg/" alt=\"ICO vs IDO: Huobi Prime's IEO for the TOP Network.\" width=\"1000\" height=\"682\" \/><\/p>\n<p>But a new problem arose. In certain cases, <strong>not everyone was able to participate in the token acquisition<\/strong>. Exchanges began limiting who could participate in IEOs by, for example, introducing various requirements. They could have ranged from asking users to have an account on the exchange, hold the exchange’s native tokens, or meet trading volume requirements. The same applied to projects which may have wanted to organize their IEO on a particular exchange.<\/p>\n<p>Once again, the world of fundraising models needed something new.<\/p>\n<h2>What is IDO?<\/h2>\n<p>So, that’s where IDOs in crypto became a thing. <strong>An “IDO” is an “Initial DEX Offering,”<\/strong> where “DEX” stands for “<a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-decentralized-exchange-dex/">Decentralized Exchange<\/strong><\/a>”. If you feel like refreshing your knowledge on what DEXs are, and how they are different from centralized exchanges, be sure to check a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">section dedicated to this topic<\/strong><\/a>!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Initial DEX Offering.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-11.jpg/" alt=\"ICO vs IDO: Initial DEX Offering.\" width=\"1000\" height=\"596\" \/><\/p>\n<p>Now, the debate of ICO vs IDO in crypto, just like the one of IDO vs IEO, goes on. After all, <strong>they’re all just different fundraising mechanisms for crypto startups<\/strong>. But, this time, the action takes place not on a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-centralized-exchange-cex/">centralized exchange<\/strong><\/a>, <em>but… <\/em>you guessed it, a decentralized one.<\/p>\n<p>The competition of ICO vs IDO vs IEO is a real thing because they are all ways of allowing startups to raise capital by selling tokens to investors. With IDOs, the whole process takes place on a DEX, thus solving the problems that arise with ICOs and IEOs - namely, a lack of transparency, safety, or participation requirements.<\/p>\n<p><strong>IDOs really decentralize the whole fundraising process. <\/strong>A <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//best-cryptocurrency-wallet/">crypto wallet<\/strong><\/a> and an internet connection were the main conditions to contribute to the fundraiser campaign.<\/p>\n<p>Suddenly, projects were able to market their products to the whole community, instead of selected accredited investors. You can look at this as a <strong>‘GoFundMe’ version of DeFi<\/strong>, since, at its very essence, IDOs work in a very similar way.<\/p>\n<p>Apart from that, IDOs allow projects to experiment and see for themselves what the market demand for their newly-issued token is. These tokens aren’t listed on centralized exchanges at the time of the IDO, so truly enthusiastic investors can begin trading them on DEXs before they get listed on a centralized platform.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"ICO vs IDO: Balancer and Uniswap IDOs.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//ICO-vs-IDO-14.jpg/" alt=\"ICO vs IDO: Balancer and Uniswap IDOs.\" width=\"1000\" height=\"483\" \/><\/p>\n<p>Here are some real-life examples. In August 2020, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//ocean-protocol-ocean-price/">Ocean Protocol<\/strong><\/a>, a data exchange protocol, raised $1.8 million on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//top-crypto-exchanges//balancer-v2/">Balancer. Or, in October 2020, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//polkastarter-pols-price/">Polkastarter, a decentralized protocol, raised $775k on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//top-crypto-exchanges//uniswap-v3/">Uniswap./nWrapping Up<\/h2>\n<p>So, there you have it; <strong>we have covered the ongoing ICO vs IDO vs IEO debate, the three most popular DeFi fundraising models<\/strong>. None of them are perfect, yet it’s thanks to these fundraising processes that we have what we have in the crypto space. Every established household name had its beginnings. And, no matter what DeFi company, dApp, or product you’d look into, it’s almost certain that it began with either an ICO, IEO, or an IDO.<\/p>","definition":"Did you know that, in the crypto world, ICOs, IDOs, and IEOs are all ways of fundraising money for new crypto projects?","status":"published","meta_title":"ICO vs IDO vs IEO: The Key Differences and Similarities","meta_description":"No matter if you're trying to find the winner in the ICO vs IDO battle, ICO vs IEO, or IEO vs IDO, you'll find all you need to know here!","meta_keywords":"ico vs ido, ico vs ido crypto, ico crypto, ido crypto, ico meaning, what is ico, ido meaning, what is ido, ico vs ido vs ieo","modified_content":"<p>In this section, we’re going to take a look at the concepts of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-initial-coin-offering-ico/">ICO vs <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-initial-dex-offering-ido/">IDO vs <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-initial-exchange-offering-ieo/">IEO!/n
Wrapping Up<\/h2>\n<p>So, there you have it; <strong>we have covered the ongoing ICO vs IDO vs IEO debate, the three most popular DeFi fundraising models<\/strong>. None of them are perfect, yet it’s thanks to these fundraising processes that we have what we have in the crypto space. Every established household name had its beginnings. And, no matter what DeFi company, dApp, or product you’d look into, it’s almost certain that it began with either an ICO, IEO, or an IDO.<\/p>","youtube_video":{"id":61,"channel_id":1,"sort":37,"video_title":"ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)","description":"What are the key differences and similarities between ICO vs IDO vs IEO?\n\nCrypto natives are well aware of the \u201cICO vs IDO vs IEO\u201d debate. It\u2019s because crypto fundraising can come in a few different forms, and these are some of the most common ones. \u201cICO vs IDO vs IEO\u201d stands for \u201cInitial Coin Offering vs Initial Exchange Offering vs Initial DEX Offering\u201d, respectively. It's all confusing at first, but you need to know that this is how many crypto projects get their start.\n\nIn this video, I will explain what the three aforementioned concepts are. Specifically, we\u2019ll talk about their main differences, their purpose, and why they were created, in the first place. By analyzing each of them separately, you'll get a full picture of what DeFi fundraising looks like.\n\nWhich way of fundraising money for a new crypto project looks the most appealing to you? Let me know, in the comment section below!\n\nVideo Time Table:\n0:00 Introduction to ICO vs IDO vs IEO\n1:11 What is an ICO?\n5:23 What is an IEO?\n7:23 What is an IDO?\n8:57 Real-life examples\n9:16 Wrap-up: ICO vs IDO vs IEO\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#ICOvsIDO #ICO #IEO","video_id":"hKPJx_u9Zc8","duration":599,"view_count":483,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/ico-vs-ido-vs-ieo-which-ones-the-best-easily-explained.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-05-12T14:11:43.000000Z","created_at":"2023-05-12T23:00:10.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}"
:model="{"id":474,"chapter_id":7,"order":4,"featured_image_id":3088,"youtube_video_id":62,"author_id":1,"created_at":"2023-03-20T07:08:00.000000Z","updated_at":"2023-12-20T10:25:32.000000Z","slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","content":"<p>In this section, we’re going to find out <strong>what is an airdrop in crypto<\/strong>!<\/p>\n<p>Whenever a new crypto airdrop is announced, oftentimes, the news about it begins spreading like wildfire. The whole crypto hive gets buzzing, since this means that a new opportunity to invest has just been found.<\/p>\n<p>Yet, as always, life is not what it initially seems. Sometimes, airdrops can get too technical, too confusing, too time-consuming, or simply - an attempt at scamming people. You have to be well-versed in order not to get lost in the airdrop crypto jungle. That’s exactly what I’m here to help you with!<\/p>\n<p>We’ll begin by addressing the question of what is a crypto airdrop, then move on and explore the reasons behind why crypto projects organize them, in the first place. Eventually, we’ll look deeper into some successful, famous examples of crypto airdrops from the past. In the end, you’ll have a much better understanding of what are crypto airdrops!<\/p>\n<p><em>Let’s begin!<\/em><\/p>\n<h2>What is an Airdrop in Crypto?<\/h2>\n<p>To start off, let’s define crypto airdrops.<\/p>\n<p><strong>In crypto, this term refers to distributing assets (be it coins or tokens) to a large number of individuals.<\/strong> Both cryptocurrencies, as well as NFTs can be airdropped. Just like a friend can airdrop a picture from their travels directly to you, so can crypto projects airdrop you free stuff. But, when it comes to crypto, airdropping takes more than simply having an iPhone.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Definition.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-01.jpg/" alt=\"What is an airdrop: Definition.\" width=\"1000\" height=\"645\"><\/p>\n<p>So, in order to receive these crypto airdrops, users must become eligible to claim them. This requires taking certain actions that, in turn, help generate interest and awareness about the project.<\/p>\n<p>Here, consider this simple analogy to understand how crypto airdrops work. Your friend is moving out this weekend. You realize that it’s a draining process, and that extra hands would never hurt in a situation like this. You offer to give them a ride, help them move their stuff from their old place into the new one. You help them now, so eventually, when they’re all set up in their new apartment, they invite you for dinner. You helped them in an early stage of their life or a project, so now, once they’ve gained speed, they reward you.<\/p>\n<p>You could put it this way - <strong>the invitation for dinner was “the airdrop”<\/strong>. Only selected and eligible recipients received it. Now, imagine this on a larger scale. People who helped test a new project, reported bugs, tried out new services (while the project was in its beginning phases), receive airdrops as a reward for their efforts, and as a point that it pays for being loyal to a particular company, brand, or blockchain.<\/p>\n<p><strong>Airdrops are more than just a reward for user loyalty, though. <\/strong>They’re also a clever way of conducting marketing. You see, “people claiming airdrops” translates to ”people getting free money”. It makes the word spread around, people begin to talk about it, everyone wants to be among those who can receive an airdrop.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: The network effect.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-03.jpg/" alt=\"What is an airdrop: The network effect.\" width=\"1000\" height=\"559\"><\/p>\n<p>Naturally, it can catapult the project behind the airdrop into the spotlight. This is publicity, people get to know, recognize, and remember the company’s name. That’s known as <em>“the network effect”.<\/em><\/p>\n<p>A very down-to-earth example could be this. John wants to go out and get himself a coffee. One coffee shop offers a deal: “If you buy coffee from us 4 times in a row, you’ll get the 5th one for free”. John chooses this place, being sure that he’ll return there and claim his free coffee eventually. He recommends this to his friends. The free coffee, which plays the role of the reward, is received, and the word is out there.<\/p>\n<h2>Making Money With Crypto Airdrops<\/h2>\n<p>Okay, that’s the theory. Let’s move on to the practice - it’s the most exciting part, since there are plenty of stories of how successful airdrop campaigns really ended up in companies boosting their brand awareness, and users boosting the contents of their wallets.<\/p>\n<p><strong>So, people make money with airdrops.<\/strong> But it all begins with receiving free tokens (or coins). The project may eventually take off, its value would increase, and thus, the value of the token would grow, as well.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Free coins.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-04.jpg/" alt=\"What is an airdrop: Free coins.\" width=\"1000\" height=\"514\"><\/p>\n<p>For fast money, recipients simply go to crypto exchanges and sell or trade the tokens, and end up pocketing the profits. It’s like selling a valuable Christmas gift that you received. Except there’s no guilt involved.<\/p>\n<p>While there are some recent successful examples, let’s take a look at where it all began. <strong>Crypto airdrops became a thing in 2014.<\/strong> Out of all places, it actually began in Iceland.<\/p>\n<p>The first crypto airdrop was organized by <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//auroracoin-aur-price/">Auroracoin. The idea behind Auroracoin was to create an asset that would also be the national digital currency of Iceland. It was launched in February 2014, and airdropping free Auroracoins to citizens of the country was the plan of how to popularize it. 50% of the total Auroracoin supply was intended to be distributed to the country’s residents.<\/p>\n<p>So, that’s literally free money. Sounds a bit too good to be true. And, well, unfortunately, it was.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: March 25, 2014.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-05.jpg/" alt=\"What is an airdrop: March 25, 2014.\" width=\"1000\" height=\"576\"><\/p>\n<p>The airdrop took place on March 25, 2014. Every Icelandic citizen was eligible to receive 31.8 Auroracoins (around $12 at that time). <strong>In order to claim the airdrop, people had to submit their identification numbers.<\/strong> That’s it. Yet… it was too much for the project to take off.<\/p>\n<p>The Auroracoin price dropped pretty quickly. This reduced people’s interest in the coin, and the project overall. This, in turn, led to Auroracoin’s eventual demise.<\/p>\n<p>Many lessons were learned, however. The buzz was generated, the interest was raised, the whole thing was widely covered by the media. Private companies kept their eyes peeled, and took notes.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Binance.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-07.jpg/" alt=\"What is an airdrop: Binance.\" width=\"1000\" height=\"553\"><\/p>\n<p>In 2017 <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, a then newly-established centralized crypto exchange, decided to give this strategy a try. <strong>Binance distributed 500 BNB tokens to anyone who simply signed up for the airdrop<\/strong>.<\/p>\n<p>Here’s the math behind it. The BNB token was worth around $0.10 at that time. So, everyone received around $50 worth of crypto. On the 5th of April, 2021, BNB was worth $676. So, those who held on to their 500 BNB tokens, were able to sell them for over $330,000. This pretty much illustrates why airdrops are so beloved among the community.<\/p>\n<p>Not even mentioning the fact that, thanks to innovative marketing approaches like this, Binance was able to catapult itself into the eye of the crypto public, and cemented itself as the leading crypto exchange in the world.<\/p>\n<p>By the way, if you feel like updating your knowledge about centralized exchanges, and how they work, be sure to check out <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">this section<\/strong><\/a> that covers the topic extensively!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Blur, Optimism, Uniswap.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-08.jpg/" alt=\"What is an airdrop: Blur, Optimism, Uniswap.\" width=\"1000\" height=\"664\"><\/p>\n<p>After such success stories, airdrops got more and more popular. Names such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//optimism-ethereum-op-price/">Optimism, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//blur-token-blur-price/">Blur, and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//uniswap-uni-price/">Uniswap tried their luck with airdrops. And, they were successful. But there are always two sides to a coin.<\/p>\n<p>As usual, when something gets popular because various opportunists begin jumping aboard the hype train, malicious people tend to blend in, as well.<\/p>\n<p>Therefore, it’s not surprising that <strong>many people started reporting negative experiences after trying to receive an airdrop<\/strong>. Particular risks became associated with airdrops, especially the ones organized by obscure projects.<\/p>\n<p>For example, some airdrops may require you to share your personal or wallet information with unknown sources. This could expose you to phishing attacks, identity theft, or other forms of hacks. It’s vital to be 100% sure about how valid a particular airdrop is.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Phishing attacks, identity theft, other form of hack.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-09.jpg/" alt=\"What is an airdrop: Phishing attacks, identity theft, other form of hack.\" width=\"1000\" height=\"577\"><\/p>\n<p>Another risk is that some airdrops may be part of “<a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-pump-and-dump-pandd-scheme/">pump-and-dump” schemes, where the token price is artificially inflated, and then dumped by the creators or early investors.<\/p>\n<p>Or, in other cases, disappointment can arise from receiving only the so-called “<a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-dust-transaction/">dust” of an airdrop. This happens when the team behind the project launches their product, or a coin, and its value plummets instantly. In this case, the value of the airdrop falls dramatically, as well, and users end up receiving a sad-looking addition to their wallet.<\/p>\n<h2>How to Get an Airdrop?<\/h2>\n<p>Nevertheless, all of that doesn't deny the fact that <strong>airdrops can be a successful and profitable strategy for both: the company, and the user<\/strong>.<\/p>\n<p>Therefore, choosing the right project, qualifying as eligible for their airdrops, and simply being prepared is the key to being among the first ones to receive the most valuable airdrops. But the question arises: “how do you get an airdrop?”<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: How to get an airdrop?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-12.jpg/" alt=\"What is an airdrop: How to get an airdrop?\" width=\"1000\" height=\"522\"><\/p>\n<p>The simple answer is that <strong>the criteria for being eligible for an airdrop can vary greatly from project to project<\/strong>. It can range from simply following a project's social media accounts, holding a specific token, to being an early adopter and regularly using the platform, such as a DEX, or a particular NFT marketplace.<\/p>\n<p>The key is to pay attention to the specific requirements of each project, as they can change over time. It's important to do your own research and understand the risks before participating in an airdrop. Keeping all of this in mind will greatly reduce the chances of participating in fake, scammy projects and wasting your time.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>To sum up, I’ve answered the questions of “what is an airdrop?”, “what’s the crypto airdrop meaning?”, and “how can people potentially make money thanks to crypto airdrops?”. Similar to many good things in life, crypto airdrops can be exciting and rewarding, but they also come with some pitfalls.<\/p>\n<p><strong>Nevertheless, strategic companies will continue increasing their brand awareness, and expanding their communities thanks to well-organized airdrops.<\/strong> Same goes for users, who, while remaining cautious and calculating, will avoid scams and poorly-prepared airdrops.<\/p>\n<p>And that brings us to the point where it’s time to call it a wrap! I hope you learned a thing or few, and from now on, the question “what is an airdrop?” will not bother you anymore.<\/p>\n<p> <\/p>","definition":"Did you know that the first crypto airdrop took place in February 2014 and it was organized by Auroracoin?","status":"published","meta_title":"What is an Airdrop in Crypto and How to Get It?","meta_description":"What is an airdrop in crypto? How to get an airdrop? How to earn from airdrops? Found answers to these and other related questions here!","meta_keywords":"what is an airdrop, crypto airdrop, airdrop crypto, airdrop meaning, what is a crypto airdrop, what is airdrop crypto, crypto airdrop meaning, what is an airdrop in crypto, airdrop crypto meaning, what is crypto airdrop","modified_content":"<p>In this section, we’re going to find out <strong>what is an airdrop in crypto<\/strong>!<\/p>\n<p>Whenever a new crypto airdrop is announced, oftentimes, the news about it begins spreading like wildfire. The whole crypto hive gets buzzing, since this means that a new opportunity to invest has just been found.<\/p>\n<p>Yet, as always, life is not what it initially seems. Sometimes, airdrops can get too technical, too confusing, too time-consuming, or simply - an attempt at scamming people. You have to be well-versed in order not to get lost in the airdrop crypto jungle. That’s exactly what I’m here to help you with!<\/p>\n<p>We’ll begin by addressing the question of what is a crypto airdrop, then move on and explore the reasons behind why crypto projects organize them, in the first place. Eventually, we’ll look deeper into some successful, famous examples of crypto airdrops from the past. In the end, you’ll have a much better understanding of what are crypto airdrops!<\/p>\n<p><em>Let’s begin!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"What is a Crypto Airdrop & How to Get FREE Coins? (Animated)\"\n title=\"What is a Crypto Airdrop & How to Get FREE Coins? (Animated)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: What are Crypto Airdrops and How to Get Them?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"What are Crypto Airdrops and How to Get Them?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"xE7K4D3WOKA\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">What is a Crypto Airdrop & How to Get FREE Coins? (Animated)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-crypto-airdrop-how-to-get-free-coins-animated.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-crypto-airdrop-how-to-get-free-coins-animated.jpg?tr=w-760 1000w\"\n alt=\"What is a Crypto Airdrop & How to Get FREE Coins? (Animated)\"\n title=\"What is a Crypto Airdrop & How to Get FREE Coins? (Animated)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"What is a Crypto Airdrop & How to Get FREE Coins? (Animated)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What is an Airdrop in Crypto?<\/h2>\n<p>To start off, let’s define crypto airdrops.<\/p>\n<p><strong>In crypto, this term refers to distributing assets (be it coins or tokens) to a large number of individuals.<\/strong> Both cryptocurrencies, as well as NFTs can be airdropped. Just like a friend can airdrop a picture from their travels directly to you, so can crypto projects airdrop you free stuff. But, when it comes to crypto, airdropping takes more than simply having an iPhone.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Definition.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-01.jpg/" alt=\"What is an airdrop: Definition.\" width=\"1000\" height=\"645\"><\/p>\n<p>So, in order to receive these crypto airdrops, users must become eligible to claim them. This requires taking certain actions that, in turn, help generate interest and awareness about the project.<\/p>\n<p>Here, consider this simple analogy to understand how crypto airdrops work. Your friend is moving out this weekend. You realize that it’s a draining process, and that extra hands would never hurt in a situation like this. You offer to give them a ride, help them move their stuff from their old place into the new one. You help them now, so eventually, when they’re all set up in their new apartment, they invite you for dinner. You helped them in an early stage of their life or a project, so now, once they’ve gained speed, they reward you.<\/p>\n<p>You could put it this way - <strong>the invitation for dinner was “the airdrop”<\/strong>. Only selected and eligible recipients received it. Now, imagine this on a larger scale. People who helped test a new project, reported bugs, tried out new services (while the project was in its beginning phases), receive airdrops as a reward for their efforts, and as a point that it pays for being loyal to a particular company, brand, or blockchain.<\/p>\n<p><strong>Airdrops are more than just a reward for user loyalty, though. <\/strong>They’re also a clever way of conducting marketing. You see, “people claiming airdrops” translates to ”people getting free money”. It makes the word spread around, people begin to talk about it, everyone wants to be among those who can receive an airdrop.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: The network effect.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-03.jpg/" alt=\"What is an airdrop: The network effect.\" width=\"1000\" height=\"559\"><\/p>\n<p>Naturally, it can catapult the project behind the airdrop into the spotlight. This is publicity, people get to know, recognize, and remember the company’s name. That’s known as <em>“the network effect”.<\/em><\/p>\n<p>A very down-to-earth example could be this. John wants to go out and get himself a coffee. One coffee shop offers a deal: “If you buy coffee from us 4 times in a row, you’ll get the 5th one for free”. John chooses this place, being sure that he’ll return there and claim his free coffee eventually. He recommends this to his friends. The free coffee, which plays the role of the reward, is received, and the word is out there.<\/p>\n<h2>Making Money With Crypto Airdrops<\/h2>\n<p>Okay, that’s the theory. Let’s move on to the practice - it’s the most exciting part, since there are plenty of stories of how successful airdrop campaigns really ended up in companies boosting their brand awareness, and users boosting the contents of their wallets.<\/p>\n<p><strong>So, people make money with airdrops.<\/strong> But it all begins with receiving free tokens (or coins). The project may eventually take off, its value would increase, and thus, the value of the token would grow, as well.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Free coins.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-04.jpg/" alt=\"What is an airdrop: Free coins.\" width=\"1000\" height=\"514\"><\/p>\n<p>For fast money, recipients simply go to crypto exchanges and sell or trade the tokens, and end up pocketing the profits. It’s like selling a valuable Christmas gift that you received. Except there’s no guilt involved.<\/p>\n<p>While there are some recent successful examples, let’s take a look at where it all began. <strong>Crypto airdrops became a thing in 2014.<\/strong> Out of all places, it actually began in Iceland.<\/p>\n<p>The first crypto airdrop was organized by <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//auroracoin-aur-price/">Auroracoin. The idea behind Auroracoin was to create an asset that would also be the national digital currency of Iceland. It was launched in February 2014, and airdropping free Auroracoins to citizens of the country was the plan of how to popularize it. 50% of the total Auroracoin supply was intended to be distributed to the country’s residents.<\/p>\n<p>So, that’s literally free money. Sounds a bit too good to be true. And, well, unfortunately, it was.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: March 25, 2014.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-05.jpg/" alt=\"What is an airdrop: March 25, 2014.\" width=\"1000\" height=\"576\"><\/p>\n<p>The airdrop took place on March 25, 2014. Every Icelandic citizen was eligible to receive 31.8 Auroracoins (around $12 at that time). <strong>In order to claim the airdrop, people had to submit their identification numbers.<\/strong> That’s it. Yet… it was too much for the project to take off.<\/p>\n<p>The Auroracoin price dropped pretty quickly. This reduced people’s interest in the coin, and the project overall. This, in turn, led to Auroracoin’s eventual demise.<\/p>\n<p>Many lessons were learned, however. The buzz was generated, the interest was raised, the whole thing was widely covered by the media. Private companies kept their eyes peeled, and took notes.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Binance.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-07.jpg/" alt=\"What is an airdrop: Binance.\" width=\"1000\" height=\"553\"><\/p>\n<p>In 2017 <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, a then newly-established centralized crypto exchange, decided to give this strategy a try. <strong>Binance distributed 500 BNB tokens to anyone who simply signed up for the airdrop<\/strong>.<\/p>\n<p>Here’s the math behind it. The BNB token was worth around $0.10 at that time. So, everyone received around $50 worth of crypto. On the 5th of April, 2021, BNB was worth $676. So, those who held on to their 500 BNB tokens, were able to sell them for over $330,000. This pretty much illustrates why airdrops are so beloved among the community.<\/p>\n<p>Not even mentioning the fact that, thanks to innovative marketing approaches like this, Binance was able to catapult itself into the eye of the crypto public, and cemented itself as the leading crypto exchange in the world.<\/p>\n<p>By the way, if you feel like updating your knowledge about centralized exchanges, and how they work, be sure to check out <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">this section<\/strong><\/a> that covers the topic extensively!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Blur, Optimism, Uniswap.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-08.jpg/" alt=\"What is an airdrop: Blur, Optimism, Uniswap.\" width=\"1000\" height=\"664\"><\/p>\n<p>After such success stories, airdrops got more and more popular. Names such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//optimism-ethereum-op-price/">Optimism, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//blur-token-blur-price/">Blur, and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//uniswap-uni-price/">Uniswap tried their luck with airdrops. And, they were successful. But there are always two sides to a coin.<\/p>\n<p>As usual, when something gets popular because various opportunists begin jumping aboard the hype train, malicious people tend to blend in, as well.<\/p>\n<p>Therefore, it’s not surprising that <strong>many people started reporting negative experiences after trying to receive an airdrop<\/strong>. Particular risks became associated with airdrops, especially the ones organized by obscure projects.<\/p>\n<p>For example, some airdrops may require you to share your personal or wallet information with unknown sources. This could expose you to phishing attacks, identity theft, or other forms of hacks. It’s vital to be 100% sure about how valid a particular airdrop is.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: Phishing attacks, identity theft, other form of hack.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-09.jpg/" alt=\"What is an airdrop: Phishing attacks, identity theft, other form of hack.\" width=\"1000\" height=\"577\"><\/p>\n<p>Another risk is that some airdrops may be part of “<a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-pump-and-dump-pandd-scheme/">pump-and-dump” schemes, where the token price is artificially inflated, and then dumped by the creators or early investors.<\/p>\n<p>Or, in other cases, disappointment can arise from receiving only the so-called “<a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-dust-transaction/">dust” of an airdrop. This happens when the team behind the project launches their product, or a coin, and its value plummets instantly. In this case, the value of the airdrop falls dramatically, as well, and users end up receiving a sad-looking addition to their wallet.<\/p>\n<h2>How to Get an Airdrop?<\/h2>\n<p>Nevertheless, all of that doesn't deny the fact that <strong>airdrops can be a successful and profitable strategy for both: the company, and the user<\/strong>.<\/p>\n<p>Therefore, choosing the right project, qualifying as eligible for their airdrops, and simply being prepared is the key to being among the first ones to receive the most valuable airdrops. But the question arises: “how do you get an airdrop?”<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an airdrop: How to get an airdrop?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-airdrop-12.jpg/" alt=\"What is an airdrop: How to get an airdrop?\" width=\"1000\" height=\"522\"><\/p>\n<p>The simple answer is that <strong>the criteria for being eligible for an airdrop can vary greatly from project to project<\/strong>. It can range from simply following a project's social media accounts, holding a specific token, to being an early adopter and regularly using the platform, such as a DEX, or a particular NFT marketplace.<\/p>\n<p>The key is to pay attention to the specific requirements of each project, as they can change over time. It's important to do your own research and understand the risks before participating in an airdrop. Keeping all of this in mind will greatly reduce the chances of participating in fake, scammy projects and wasting your time.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>To sum up, I’ve answered the questions of “what is an airdrop?”, “what’s the crypto airdrop meaning?”, and “how can people potentially make money thanks to crypto airdrops?”. Similar to many good things in life, crypto airdrops can be exciting and rewarding, but they also come with some pitfalls.<\/p>\n<p><strong>Nevertheless, strategic companies will continue increasing their brand awareness, and expanding their communities thanks to well-organized airdrops.<\/strong> Same goes for users, who, while remaining cautious and calculating, will avoid scams and poorly-prepared airdrops.<\/p>\n<p>And that brings us to the point where it’s time to call it a wrap! I hope you learned a thing or few, and from now on, the question “what is an airdrop?” will not bother you anymore.<\/p>\n<p> <\/p>","youtube_video":{"id":62,"channel_id":1,"sort":36,"video_title":"What is a Crypto Airdrop & How to Get FREE Coins? (Animated)","description":"What is an airdrop in crypto?\n\nThe term \u201ccrypto airdrop\u201d refers to distributing assets (be it tokens or coins) to a large number of individuals. It\u2019s a popular form of increasing brand awareness, and building a loyal customer base. \n\nIn this video, I will explain what is a crypto airdrop, and how crypto airdrops became such an important part of the crypto ecosystem. I\u2019ll cover the origins of this phenomenon, and then, I\u2019ll move to particular examples of how crypto airdrops were employed within the industry. To give a well-balanced view, I\u2019ll mention what risks can be associated with airdrops, because not all of them are trustworthy. \n\nDo you think airdrops will become an even more inseparable part of the DeFi world? Or is their time already over? Let me know, in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to What is a Crypto Airdrop?\n1:02 What is an Airdrop in Crypto?\n3:11 Making Money With Crypto Airdrops\n6:25 Risks of Crypto Airdrops\n7:08 How to Get an Airdrop?\n8:01 Wrap-up: What is a Crypto Airdrop?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#WhatisaCryptoAirdrop #AirdropCrypto #AirdropIncome","video_id":"xE7K4D3WOKA","duration":528,"view_count":328,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-crypto-airdrop-how-to-get-free-coins-animated.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-05-16T15:09:24.000000Z","created_at":"2023-05-16T23:00:10.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":3088,"uuid":"aa973d9f-515d-4248-813e-1d2e6f48b6d3","name":"what-is-an-airdrop-featured-image.jpg","url":"https:\/\/assets.bitdegree.org\/crypto\/storage\/optimized\/what-is-an-airdrop-featured-image.jpg","path":"crypto\/storage\/optimized\/what-is-an-airdrop-featured-image.jpg","mime_type":"image\/jpeg","disk":"digitalOceanSpaces","size":67633,"width":1024,"height":576,"custom_properties":null,"created_at":"2023-06-19T06:58:40.000000Z","updated_at":"2023-06-19T06:58:40.000000Z"}}"
:chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin Killer","status":"published","modified_content":null},{"chapter_id":2,"order":10,"slug":"what-is-solana-in-crypto","title":"Is Solana an Improved Version of Ethereum?","status":"published","modified_content":null},{"chapter_id":2,"order":11,"slug":"what-is-polkadot-in-crypto","title":"The Bridge Between Blockchains: Polkadot","status":"published","modified_content":null},{"chapter_id":2,"order":12,"slug":"what-is-polygon-in-crypto","title":"Polygon: the Essential Scaling Solution for Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":13,"slug":"what-is-luna-crypto","title":"The Bumpy Road of Terra (LUNA)","status":"published","modified_content":null},{"chapter_id":2,"order":14,"slug":"what-is-fantom-crypto","title":"Is Fantom (FTM) Yet Another Ethereum Killer?","status":"published","modified_content":null},{"chapter_id":2,"order":15,"slug":"what-is-aave-crypto","title":"Aave: Crypto Lending Trailblazer","status":"published","modified_content":null},{"chapter_id":2,"order":16,"slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","status":"published","modified_content":null},{"chapter_id":2,"order":17,"slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","status":"published","modified_content":null},{"chapter_id":2,"order":18,"slug":"what-is-avax","title":"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?","status":"published","modified_content":null},{"chapter_id":2,"order":19,"slug":"what-is-monero-coin","title":"Monero: Where Cryptocurrency Meets Cryptography","status":"published","modified_content":null},{"chapter_id":2,"order":20,"slug":"what-is-ripple-xrp","title":"Is Ripple \"it\" When it Comes to Cross-Border Transactions?","status":"published","modified_content":null},{"chapter_id":2,"order":21,"slug":"practical-use-of-cryptocurrencies","title":"The Practical Use of Crypto","status":"published","modified_content":null}]},{"id":3,"title":"Crypto Exchanges","slug":"crypto-exchanges","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-exchanges.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-exchanges-101.jpg","rating":80,"sections":[{"chapter_id":3,"order":1,"slug":"how-do-cryptocurrency-exchanges-work","title":"How do Cryptocurrency Exchanges Work?","status":"published","modified_content":null},{"chapter_id":3,"order":2,"slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":3,"order":3,"slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","status":"published","modified_content":null},{"chapter_id":3,"order":4,"slug":"kyc-crypto","title":"KYC & AML: The Key to Complying With Legal Industry Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming Techniques","status":"published","modified_content":null},{"chapter_id":6,"order":12,"slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","status":"published","modified_content":null},{"chapter_id":6,"order":13,"slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","status":"published","modified_content":null},{"chapter_id":6,"order":14,"slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","status":"published","modified_content":null}]},{"id":7,"title":"Trading & Investing","slug":"trading-and-investing","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-trading.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-trading-101.jpg","rating":80,"sections":[{"chapter_id":7,"order":1,"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration Date","status":"published","modified_content":null},{"chapter_id":7,"order":8,"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":9,"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","status":"published","modified_content":null},{"chapter_id":7,"order":10,"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":11,"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","status":"published","modified_content":null},{"chapter_id":7,"order":12,"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","status":"published","modified_content":null}]},{"id":8,"title":"Crypto Analysis","slug":"crypto-analysis","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-analysis.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-analysis-101.jpg","rating":100,"sections":[{"chapter_id":8,"order":1,"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","status":"published","modified_content":null},{"chapter_id":8,"order":2,"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","status":"published","modified_content":null},{"chapter_id":8,"order":3,"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","status":"published","modified_content":null},{"chapter_id":8,"order":4,"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]"
current-chapter="trading-and-investing"
current-section="what-is-an-airdrop">