What are NFT airdrops?

Airdrops in the crypto world are basically free tokens dropped into the wallet of fans within a brand community.

What are NFT airdrops?

Airdrops in the crypto world are basically free tokens dropped into the wallet of fans within a brand community. Why would anyone give away free tokens? The short answer: it's a marketing technique. It's a great way to generate awareness and excitement about a new product or service. Here are some use cases for airdrops that have already been deployed by top brands.

Branding

People love free money. Fans love free merch. Non-fungible tokens (NFTs) are essentially digital merchandise. They offer a new way for fans to engage with a brand and unlock some current or future value.

Speculation

Many fans know, NFTs can easily be worth more than the effort it takes to accept the token. New tokens with low value can see huge price swings if they become popular, and others can be used to gain access to exclusive events and circles of people, both online and offline.

Analytics

Airdrops can be used to gather valuable information on potential users. Some airdrops will have you fill out a form with your email address, follow an account on Twitter, or help promote an upcoming event on Instagram. Once the tokens are in circulation, a brand can collect immensely valuable data.

Rewards

Airdrops are a great way for brands to reward their most loyal fans. They can be fun and mutually beneficial way for users to find each other and collaborate on new projects and initiatives involving the brand.

Events

Have an upcoming event? Each NFT has a unique identifier that is on one of the most secure networks in the world, making it perfect for ticketing. Brands can airdrop NFTs to a community and make each one admit entry into an exclusive event, like a beer garden or movie premier.

To accept airdrops, users must create a cryptocurrency wallet, likely on Ethereum or Bitcoin so it can accept multiple types of tokens, then safely secure the keys to the wallet to make sure they don't lose their NFTs.

Always be careful what information you give you when receiving airdrops, such as your address, phone number and or SSN. Not all airdrops are real, so make sure you ask lots of questions and do your homework. Generally, airdrops are harmless and result in a larger and faster user-base growth than traditional 2.0 marketing and advertising techniques.