The current banking crisis has brought cryptocurrencies back in the headlines. There is a wide range of digital assets available for investment and trading as a potential hedge against inflation.

Airdropping tokens have been proving to be a popular method to engage in marketing activities for these projects. Airdrops can be used to reward early adopters, attract new users to a platform, or create a more decentralized network.

This comprehensive guide will take a closer look at how to airdrop tokens, what tokens airdrops are; including the steps involved, the benefits, and some useful tips to ensure a successful airdrop campaign. The process for both tokens such as ERC20/ERC1400 and NFTs will be covered accordingly.

How to Airdrop Tokens?

Airdroping ERC20 tokens

ERC20 is a popular standard for creating tokens on the Ethereum network. To airdrop token you would need a smart contract to create the token, and to multisend it to all your recipients.

Programming either smart contracts can prove to be very challenging and expensive, hence using our Token Tool makes the process much easier.

Airdropping ERC20 tokens is a relatively straightforward process with Bitbond Token Tool.

Here’s how to do it:

1. Determine the criteria for the airdrop. Decide who will be eligible to receive the tokens and how many tokens they will receive.
2. Create a token (aka smart contract) for the airdrop.
3. Notify eligible users that they will be receiving tokens via the airdrop.
4. You will also need a smart contract to be able to distribute the tokens to multiple recipients at once. The Distribute Token function enables you to do exactly that in a much faster and more cost-effective manner.
5. Once you’re on the distribute token page:
   • Select the network on which the token is running
   • Connect your wallet
   • Select the token in question
   • Insert addresses and the respective amount of tokens to be sent. Separate the address and amount with a comma and no space in between: [Wallet Address],[Amount]. Here is an example: “0xL2b8F6E38D593334300F764e74b05d221dFd5D29,100” (you can also upload a file with the list of addresses following the same format)
   • Click on continue at the bottom
   • Review parameters and click send
   • Confirm the transaction in your wallet.
6. After the transaction is processed, all the recipients will receive the token airdrop in their wallet.

Note: make sure sufficient balance in the wallet you’re using to cover for gas fees. If you’re using Token Tool, you will also need to ensure you have sufficient funds to cover for the platform’s service fees.

How to airdrop NFTs

NFTs, or non-fungible tokens, are unique digital assets that are stored on a blockchain. Airdropping NFTs is a bit more complex than airdropping ERC20 tokens, but it can still be done with relative ease when using Bitbond Token Tool. The process is quite similar to the one described above for ERC20 tokens.

Here’s how to do it:

1. Create the NFTs that you want to airdrop. Learn how to create an NFT easily with Token Tool.
2. Determine the criteria for the airdrop. Decide who will be eligible to receive the NFTs and how many NFTs they will receive.
3. Notify eligible users that they will be receiving tokens via the airdrop.
4. In this case you will need the Distribute NFT function.
5. Once you’re on the distribute token page:
   • Select the network on which the NFT is running 
   • Connect your wallet 
   • Select the token in question 
   • Insert addresses and the respective TokenID of the NFTs to be sent. Separate the address and amount with a comma and no space in between: [Wallet Address],[TokenID]. Here is an example: “0xL2b8F6E38D593334300F764e74b05d221dFd5D29,1”
   • Click on continue at the bottom
   • Review parameters and click send
   • Confirm the transaction in your wallet.
6. After the transaction is processed, all the recipients will receive the token airdrop in their wallet.

Note: make sure sufficient balance in the wallet you’re using to cover for gas fees. If you’re using Token Tool, you will also need to ensure you have sufficient funds to cover for the platform’s service fees.

What is an Airdrop?

Airdrops have been used as a marketing initiative by DeFi and Web3 projects. They entail the distribution of free coins or tokens to eligible users. It typically involves sending tokens to the wallets of users who meet certain criteria, such as holding a certain amount of a particular cryptocurrency. 

Airdrops can also be used to reward followers or for completing certain tasks, such as referring new users to a platform. Token airdrops are often used to create buzz around new cryptocurrencies or to reward existing community members for their loyalty. 

The concept of airdrops is similar to the traditional marketing technique of giving away free samples, it has the aim of generating interest, as well as encouraging users to engage with the company or project.

Why Airdrop Tokens?

A project might choose to airdrop tokens for many reasons. Airdropping tokens can be used as a tool to create a more decentralized network. This is achieved through distributing tokens to a large number of people.

Additionally, they can be used to attract new users to a platform or reward early adopters. They serve as great means to create a buzz around a project, leading to increased interest generated over the project.

It can be an effective way to create hype around a new project as it generates interest amongst potential investors. Airdrops can also help in distributing tokens more widely and fairly, ensuring that they are not monopolized by a small group of holders.

Lastly, airdrops can be used to reward loyal users, incentivizing them to continue supporting the project and helping it to grow. 

Best Practices for Airdropping Tokens

Here are some best practices to keep in mind when airdropping tokens:

1. Be clear about the criteria for the airdrop. Make sure that users know what they need to do in order to be eligible to receive tokens.
2. Set a reasonable cap on the number of tokens that can be received via the airdrop. This will help prevent users from gaming the system and taking advantage of the airdrop.
3. Be mindful of gas fees. Airdropping tokens can be expensive depending on the network used. Make a thorough analysis of the underlying network chosen to conduct the airdrop.
4. Use a reputable smart contract platform such as Token Tool or create your own. We do not recommend the latter option as it may prove to be highly inefficient and challenging. 
5. Make sure to thoroughly test the smart contract before deploying it to the blockchain network.
6. Notify users in advance of the airdrop. This will help create buzz and generate interest in your project.
7. Follow up with users after the airdrop. This will help build a community around your project and keep users engaged.

Airdrops are here to stay

Airdropping tokens can be a powerful tool for building a community and generating interest in a project. Token airdrops have proven to be a popular marketing strategy in the cryptocurrency and DeFi space. 

Whether you are a cryptocurrency company looking to launch an airdrop campaign or an individual interested in participating in one, it is important to follow best practices and be aware of security risks.

By setting realistic goals, verifying users, being transparent, and providing clear instructions, a project can increase the chances of a successful airdrop campaign. Additionally, it is important to be aware of security risks such as fake airdrops, scams and phishing attacks, and malware and viruses, and take steps to avoid them.

As the cryptocurrency and DeFi space continues to evolve, token airdrops are likely to remain a popular marketing strategy. By following best practices and being aware of security risks, you can make the most of this strategy and achieve goals.

FAQs

How do I airdrop tokens to eligible users?

You can airdrop tokens to eligible users by creating a smart contract that specifies the criteria for the airdrop and automatically distributes the tokens to eligible users.

What is an airdrop?

An airdrop is a marketing strategy used by companies to distribute tokens or coins for free to a specific audience or to the general public.

How can I participate in an airdrop?

To participate in an airdrop, you usually need to follow specific instructions provided by the company, such as joining their social media channels, completing tasks, or filling out a form.

Are airdrops safe?

While airdrops can be a legitimate marketing strategy, there are also many scams and fake airdrops. It is important to be cautious and do your research before participating in any airdrop.

What should I do if I suspect an airdrop is a scam?

If you suspect an airdrop is a scam, do not provide any personal information or send any cryptocurrency. Report the suspected scam to the relevant authorities and warn others in the community.

Can I sell the tokens I receive from an airdrop?

Yes, you can usually sell the tokens you receive from an airdrop on a cryptocurrency exchange or peer-to-peer marketplace, depending on the terms and conditions of the airdrop.