Airdrops are a Key Benefit of Investing in Cryptocurrency: Make $9,321 in 47 MINUTES Testing Crypto Apps
Aug 25, 2023Crypto is the goose and airdrops are golden eggs
Airdrops may be the greatest crypto strategy invented and one of several key benefits of investing in cryptocurrency. There is no better feeling than getting free money for doing things you already do in crypto.
Money does fall from the sky and money does grow on trees. It’s one of the few things that sounds too good to be true, but actually is.
Check out my video on using crypto airdrops
Where did $9,321 come from?
That’s the average of a few notable airdrops and in some cases a single airdrop may be several tens of thousands of dollars. I’ve enjoyed several of these airdrops.
Where did 47 minutes come from?
Most people want fast results, so I came up with a representative time across the different types of airdrops. Some airdrops require ZERO additional time spent beyond existing crypto strategies like staking while others may require you to jump through hoops. So 47 minutes is like an average. At the same time you must be crypto savvy and that takes some work.
Key Takeaway
You get the benefit of ZERO additional work by having done other groundwork, following a process and setting yourself up for this type of success. Crypto success is based on building blocks.
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So what is an airdrop?
It's essentially a promotional giveaway of free crypto tokens which is like free money. This is a great example of the amazing features of blockchain tech making it easy, fast and cheap to distribute tokens.
Airdrops are a bootstrapping mechanism to get people to engage with a new app. In crypto this usually means playing with a decentralized finance app (DeFi).
Key Takeaway
Staying in Coinbase or any other centralized exchange is like staying on the sideline. You must get in the game and use decentralized finance apps and exchanges to get the bigger benefits of investing in crypto.
How do you qualify for airdrops?
Example #1
In some cases, it’s as simple as holding another asset like ATOM the native token of the COSMOS blockchain. When ATOMs are staked, the tokens provide security to the COSMOS chain and you get ATOM tokens in return. Staking is like free money as well, but we’re not talking about that here.
Omosis and Juno for example, took snapshots of ATOM stakers on a specific date and used that as the record to distribute their airdrop tokens, OSMO and JUNO.
With snapshot airdrops, the amount of the airdrop is determined by the amount of funds (crypto tokens) staked. The more you stake the bigger your airdrop.
This is the most passive example of how to qualify. Once you are in the game it’s like no additional work.
Example #2
In other cases, you may have to complete a series of tasks to qualify like tweeting, getting a role on Discord and other social media promotion. (I personally don’t prefer these kind)
Example #3
A new DeFi app comes out and early adopters who use the app may get future airdrops depending on the extent of their usage and the amount of funds. Examples are Optismism and Arbitrum. (Ethereum layer 2 chains) The more transactions and the higher the amount of crypto used usually results in a larger airdrop. Other interactions like bridging assets from one chain to another is an example of a qualifying activity.
Projects don’t always disclose how to qualify so users don’t game the system, but basically the more you use the app the bigger the airdrop.
Examples of airdrops:
- Ethereum Name Service (ENS) is like the GoDaddy for vanity ETH addresses. Most users received around 200 to 300 tokens, worth over $10,000.
- Uniswap airdropped a minimum of 400 tokens worth about $9,000 (depending on when the tokens were claimed) All you had to do was make one trade to qualify.
- Bored Ape NFT did an Ape coin drop worth about $100-$200k depending on when you claimed the token. If you held the NFT at the time of the surprise airdrop, then massive free money fell from the sky.
Not every airdrop is a slam dunk
Some airdrops may be worth a few dollars for most recipients (like $10 for example) making it not worth the time. A valuable airdrop is also in the eyes of the beholder. A small airdrop to a person in the US may be a big deal to someone in a developing country. Some projects hype up an airdrop that’s just not generous enough or it’s just not that valuable in the beginning. Nonetheless, you can’t get the winners without getting some of the losers along the way. Like Stephen Covey said, “You can’t pick up one end of the stick without picking up the other end of the stick.”
Key Takeaway
Crypto is a participant sport. The more you participate the more you get rewarded. This means have fun and actively participate in your own value creation.
No one can do this for you and you can’t outsource it. You must do it yourself to get all the benefits of investing in cryptocurrency.
Crypto is the goose that keeps laying golden eggs.
Good luck and remember your goal is always to get a Crypto Bullseye™.
Yours in Crypto,
Kirk David Phillips, CPA, CMA, CFE, CBP