Crypto Airdrops: What Are They and the Reasons for the Freebies

Crypto airdrops refer to tokens distributed to select wallets after adhering to certain conditions. Airdrops are popular. The infamous UNI airdrop rings a bell.

Many consider airdrops as freebies, but are these tokens free or a Greek gift? To confirm if an airdrop is free, you have to understand the notion behind the token being distributed.

Reasons for Airdrops

Airdrops aren’t strange to the crypto community. The reverberations within the crypto space caused by the UNI and 1inch airdrops are still very fresh in the mind of the people. But what are the reasons for these airdrop bonanza?

Airdrops are given for different reasons based on the project responsible for them. From promotions and appreciation to compensation, the reasons for airdrop campaigns aren’t always the same.


Airdrops are considered a marketing gimmick for projects. Many in the crypto space hunt airdrops. If a project creates an airdrop campaign, these people get attracted to that project. Most projects can hit tens of thousands of followers just by having an airdrop campaign as people rush to follow, comment, and fulfill all the requirements for getting the airdrop.


Existing projects also host airdrop campaigns to appreciate users of their platform and token holders. Uniswap appreciated users by disbursing millions of UNI tokens to anyone that used its platform before a specific time. 1inch and Open Ocean also disbursed tokens to those who trade on their platform.

A bigger spread

For a truly decentralized ecosystem, token distribution counts a great deal. Some projects achieve this token distribution through airdropping these assets to selected persons who meet certain criteria. This way, there a more even spread of their token holders, which supports the decentralization target of the project.

Token valuation targets

Though market forces are known to decide the price of a project’s token, some outfits organize airdrop campaigns to tilt the scale towards their native token. This is possible due to the improved visibility these projects receive once their airdrop campaigns reach all the nooks and crannies of the crypto space.

Know Your Customer objectives

Nothing gets users to submit their personal information than the promise of a reward. And that’s precisely what some airdrops are created to achieve: gather information on users for further targeting. Of course, this doesn’t apply to all airdrops.

That said, regardless of the reasons behind a crypto airdrop; endeavour to do some research before participating in any airdrop.

James M. Marrero


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